More UK businesses turning to contractors

Recent ONS figures have shown a decline in UK vacancies, however, while permanent recruitment is slowing, contractor hiring is on the up.

A report from the Association of Professional Staffing Companies (APSCo), using data from Bullhorn, has revealed that the number of contract roles in the UK grew by 13% in July 2022 when compared to pre-pandemic figures.

In comparison, the number of permanent jobs dropped by 23% in the same period

However, the APSCo has warned that just because there’s been a decline in vacancies, it doesn’t mean that the skills crisis is over.

Tania Bowers, Global Public Policy Director at the APSCo, explained, “The post-pandemic hiring spike we experienced was bound to come to a halt at some time, but with recession fears looming and ongoing government uncertainty amidst a leadership contest, this drop is a concern for the country’s economy.”

Bowers added, “Our own data supports the idea that permanent recruitment is slowing as the impact of the skills shortages over the last few years plays out. However, what our statistics are also indicating is that more businesses are turning to contract professionals as they struggle to fill resourcing needs.

“This reliance on the non-employed segment of the workforce simply isn’t sustainable at a time when the UK’s attractiveness as a destination to work for international contractors is dwindling post-Brexit.

“And with the impact of Off Payroll still being felt in the temporary recruitment market, the longer-term availability of these resources and ability to tap into skills in a cost-effective manner is at risk. We urgently need some stability from the government and a clearer direction on the regulation of the employment market to ensure that the UK can manage through the difficult times ahead.”

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