Can Economic Recovery Continue to Help Contractors?

Can Economic Recovery Continue to Help Contractors?

The British Chamber of Commerce has become the latest leading body to pass a healthy judgement on the UK’s economic outlook.

The business lobby group has offered that 2013 will see overall economic growth of 1.3%, with forecasts also positive for the next two years, seeing rises of 2.2% and 2.5% respectively.

The overall picture points to more healthy times ahead, although there is still a note of caution in the wind, with analysts advising that the economy is still fragile as it enters this period of predicted sustained recovery. So is the outlook positive for contractors as well? Recent data would seem to suggest that this is the case.

KPMG disclosed last month that, across all sectors, higher employer demand for contractors had meant that agency billings had shot up to show their biggest increase for 29 months, with vacancies for contractors at a six-year high, and the take-up on those vacancies also at a two-year high.

The UK’s financial sector has shown sure-fire signs of recovery, which is great news for contractors working across the financial services industry. Firms have shown their belief in better times ahead by increasing contracting hires across the board, with a strong growth of 46% in this jobs market since February alone.

To get a feeling of the picture from inside the contracting industry, we spoke to Hannah Havekin of PayMatters, a firm specialising in providing tax compliance and payroll advice to contractors: “We are all heartened by the recent encouraging figures emerging from credible monitors of the UK’s economy. Whilst it’s reasonable to still be cautious, it’s also a refreshing change to hear so much positivity, and contractors working across a number of industries in the UK are set to benefit.”

“It is clear that firms are regaining confidence, and are turning to the expert skill sets offered by contractors to add energy and experience to their existing operations. One of the best examples of this is the 46% growth in contracting work across the Financial Services sector; this work is increasingly project-focused, and firms recognise that engaging contractors allows them to cherry-pick skilled staff using a pre-determined, strategic approach. It’s extremely encouraging to see.”

PayMatters are APSCo accredited, professional passport approved and are business partners with the Institute Of Recruiters (IOR). PayMatters pride themselves on being fully HMRC compliant from an employers and employees NI, PAYE and expense perspective. For further information please contact Hannah Havekin, Business Development Manager on 07787 428 456.