REC: Contractors From Umbrella Companies Still in Demand Despite AWR

Coming hot on the heels of the recent Jobs Index report from Reed Recruitment, the REC’s latest JobsOutlook report confirms its central findings: demand for PAYE umbrella contractors remained strong in October, despite precarious economic conditions and the implementation of the AWR.

Many had feared that a threatened meltdown in the Eurozone and the advent of the AWR would combine to have serious impact on the UK’s flexible workforce, but the REC data suggests otherwise. 28% of the employers polled said they planned to expand their temporary workforce in the next quarter, while over half (52%) say they will be maintaining it at current levels. A huge majority (83%) plan over the next twelve months to increase their temporary headcounts. Jobbing contractors working through umbrella companies can derive a little seasonal cheer from these findings.

Permanent posts are also likely to grow over the next year, with 59% of employers saying they intend to increase permanent appointees (35% plan to maintain their present headcount).

REC Director of Research Roger Tweedy conceded that low economic growth appears to have suppressed the recruitment of permanent staff, although there is a “glimmer of hope” that things may improve during 2012. He added “Hiring intentions for temps are up on this time last year despite the Agency Worker Regulations coming into force in October. Although the full impact of these Regulations will not be apparent until the first tranche of workers end their 12 week qualifying period, the early signs are that temporary and contract work will continue to provide a key outlet for employers and workers.”

Source:

http://www.shout99.com/contractors/showarticle.pl?id=72922;n=250