Report on the current contractor market
discovers that this month’s contractor market report is demonstrating conflicting reports coming out of various industry sectors. Some good / some bad. I guess if we were in the drinks industry the report below is like “Gloom Light” or “Diet Gloom”!!!
City IT workers enjoy a renaissance
Employment offers for IT contractors from financial institutions have risen by 100% from March to February, although total numbers are still well below historical figures; this is according to financial specialist pre-employment screening firm Powerchex
"History has taught us that the financial services industry are also the first to get their house in order and help the economy grow" Alexandra Kelly, Powerchex
Its Managing Director, Alexandra Kelly, believes the financial sector will be the first to recover from the recession and that IT contractors, who were first out when the downturn started, will be the first back in when demand picks up.
“History has taught us that they [the financial services industry] are also the first to get their house in order and help the economy grow,” comments Kelly. “The decline is slowing and financial services are already planning to take the lead in the recovery.”
UK managers forecast two-year recession
In research published by the Chartered Management Institute
, the majority of managers surveyed (61%) forecast that the recession will last two years and 84% felt that UK GDP will fall over the next 12 months.
The respondents also called for the chancellor to provide major tax breaks for businesses to invest in training and skills development. Such incentives, which failed to materialise in the Budget, could indirectly benefit contractors able to provide a fast and risk-free ‘plug for firm’s skills gaps.
Further actions by managers’ organisations that may fuel demand for contractors include recruitment freezes and significant reductions in recruitment budgets, reported by 49% of respondents. When permanent headcounts are static or falling, contractors are frequently called on to fill the gaps.
Budget to benefit energy, oil and gas and ‘green collar’ contractors
Contractors in the oil and gas and emerging ‘green collar’ sectors are set to enjoy the results of some government spending and tax breaks announced in the Budget. These are intended to encourage the development of new oil and gas fields in the North Sea and the growth of the renewable energy sector.
will make it easier for North Sea firms to release existing oil and gas infrastructure for other uses. This means facilities could be used for offshore wind and wave projects, plus gas storage, resulting in a surge in demand for offshore engineering contractors.
In line with the renewables potential of the North Sea, demand for ‘green collar contractors’, those working in environmental related roles and industries, is likely to increase. And many of the proposed infrastructure projects will require core contracting skills in engineering and IT to complete.
The government has also announced 11 sites in England and Wales where new nuclear power stations could be built. The first new nuclear reactors are set to come on stream from 2018; so, demand for the highly specialised engineering, construction and IT skills required to operate in the nuclear sector is likely to be high.
Article courtesy of www.contractorcalculator.co.uk