There is no doubt that businesses have grown since entering the post-recession period. However, it seems that this has not been fully reflected in workers' wages which have grown at their slowest pace in 4 years.
Recent survey findings from the Office of National Statistics (ONS) have highlighted that "median gross weekly earnings for full-time employees were £518, up 0.1% from £517 in 2013". This indicates a £1 increase over the year, the smallest growth since 1997.
The ONS further went on to discuss that "Growth has been slower since the economic downturn, with the annual increase averaging around 1.4% per year between 2009 and 2014".
With wage growth for permanent employees now at their slowest rate for four years, the lure of contracting, with its attractive pay rates, might be stronger than ever. Umbrella or limited company contractors can indulge in the benefits of greater flexibility with working days/hours, increased earning potential and the opportunity to work on various assignments.
Alongside the many perks of contracting, there is a growing demand for contractors in the workforce. A recent report from the Recruitment and Employment Confederation (REC) indicated that the number of contractor vacancies now outweigh the demand for permanent workers, with contractor supply falling short.
Therefore, with permanent wages showing little growth and the continued increase in demand for contractors, it may be the ideal time for an individual to make the leap into the world of contracting.
When making the switch, it can be both time and cost effective to ensure that you are using a credible and complaint payroll and accountancy service provider such as PayStream. More information regarding our services can be found here.