Employment market is positive at the moment

Things are looking up for contractors using umbrella companies.

Contractors should feel bolstered by the current wave of positivity in the jobs market, according to an expert, who warned that after the Budget measures this could change.

Kevin Green, chief executive of the Recruitment & Employment Confederation (REC) said that there have been encouraging signs in the employment market but he is not sure whether this can be sustained in the long term.

"This is an encouraging sign that the jobs market is stable and, in some sectors such as construction and engineering, rapidly growing," he stated.

Bernard Brown, Partner and Head of Business Services at KPMG added that the proposed public sector cuts have not yet had an impact on the UK jobs market, but he thinks this will come in the next few months.

The REC's Youth Employment Taskforce recently called on the government to help youngsters get into employment to avoid the creation of a lost generation.