Jobs report shows positive news for freelancers

Managed networking at EFFManchester

The latest report from the REC and KPMG has shown there was a marked increase in temporary and contracting jobs – the fastest increase in 13 months. The findings back British Chamber of Commerce predictions that by  outsourcing key tasks, businesses will be able to reduce fixed costs whilst maintaining high levels of productivity.

Good news for the freelance community!

Their December report offers good news for the contractor workforce as the number of permanent placements showed a weak rise. The report showed the private sector as mainly responsible for the growth, with computing and IT sectors also performing well. There was an overall rise in demand for executive and professional staff.

In a statement published on Contract Advisor, Bernard Brown of KPMG said: “The latest data suggests again that the UK job market is on the road to recovery as growth of permanent placements remained solid and demand for staff rose strongly”.

But Brown warned of forthcoming Government bites into public sector employment, suggesting the UK was “entering a critical phase for the  job market”. He continued: “The impact of government cut backs in public sector spend and employment should start to bite over the coming months and the impact of the recent VAT increase could affect UK consumer demand and job creation”.

Kevin Green of REC echoed Brown’s warnings, saying he expected to see caution from businesses hiring staff. He commented:

“While these figures continued to show private sector employment doing well, the next few months will be very tough for the jobs market in the UK.  With public sector cuts, the VAT rise and slowing economic growth, we expect to see businesses being much more cautious about hiring in the short term.”

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Written by Alistair Beech on January 26, 2011 and filed in Freelancers, News ,

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