Drop in vacancies cause contractors to cut their rates

While this time of year usually sees a drop in freelance jobs, new findings show contractors have had to cut their day rates even more than usual to compete for roles.

Figures show that at the start of the year, the average contractor day rate stood at £547 – Q2 has now seen this go down to £457.

This is according to the IPSE’s (Association of Independent Professionals and the Self-Employed) latest Freelancer Confidence Index.

Commenting on the findings, IPSE’s Policy Director, Andy Chamberlain, said, “We usually see a seasonal drop in day rates in the second quarter of each year, but this year’s data shows that freelancers have cut their rates more aggressively than usual.

“We expect this is down to the wider cooling of the jobs market, as hirers cut back on recruitment plans in the face of higher interest rates. Freelancers are responding to this by slashing their day rates in the hopes of remaining attractive to hirers with tighter budgets.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.