With the UK's skills shortage an ever increasing cause for concern, especially in industries such as the Engineering sector, contracting is becoming an essential resource for clients seeking short-term access to workers with key skills.
In a recent Jobs Outlook Survey from the Recruitment Employment Confederation (REC), it was found that pay rates for contractors are higher than that of permanent employees, with 71% of clients and 84% of organisations claiming contractors are needed to access specific skills for a short-term period.
Although the skills shortage is a growing threat to the UK's economy, it offers contractors a unique opportunity to fill in these gaps which has had a positive impact on contractor demand. With Dave Chaplin, CEO of Contractor Calculator saying it 'presents a 'perfect storm' for contractors to benefit from'.
Despite the fact that unemployment rates are dropping and businesses are hiring more and more staff, the lack of skilled candidates and permanent employees will continue to put pressure on businesses that need access to a specific skill set.
Skills within the Engineering industry are in particularly high demand with REC's jobs outlook finding 22% of companies anticipating skills shortages within permanent technical and engineering staff and 32% with agency staff. This isn't great news for employers but is a silver lining for Engineering and Tech contractors whose demand will shoot up in order to fill these gaps.
Contracting, with its attractive pay rates and flexibility, has continued to increase in popularity and over time with the growing pressure for businesses to source specific skills set, it’s likely that this way of working will continue to grow.