Temporary IT Contracting Roles Rise in October as Permanent Posts Dip

PAYE umbrella contractors on the lookout for temporary placements in the IT skills market did rather better in October than permanent job seekers, according to the latest KPMG/REC Report on Jobs.

The monthly survey of 400 UK employment and recruitment agencies recorded the first fall in permanent billings in over two years last month. Temporary billings, by contrast, especially in IT, rose slightly. The report interprets the tail-off in permanent posts as a result of employer hesitancy, with many remaining cautious about the general economic outlook. Those candidates who did succeed in securing permanent posts, however, found that gloomy conditions have not affected starting salaries, which remained broadly the same as before.

Kevin Brown, a partner at KPMG and the company’s Head of Business Services, said:

“Nervous employers are placing recruitment decisions on hold amidst concerns over the economic outlook, in many cases choosing instead to plug gaps with temps. There is some positive news with more permanent opportunities in IT, finance and accounting showing signs of improvement. However, we are still on a knife edge as we enter a critical time for European economic stability.”

Given the inhospitable economic climate, the slight increase in temporary billings was all the more encouraging, especially for specialists in IT contracting. Kevin Green, the REC’s Chief Executive, described the increasing use of skilled temporary contractors as “fantastic news”, especially as many had feared that employers would refrain from such appointments after the implementation of the Agency Workers Regulations at the start of the month.

He went on “This again demonstrates the importance of the UK's flexible workforce in helping businesses meet fluctuating demand and keeping people in work.”


Sources:

1) http://www.paystream.co.uk/Umbrella-company-news/Umbrella-company-contractors-in-demand-as-temporary-billings-rise.aspx?aid=800790530&cid=438036712

2) http://www.computerworlduk.com/news/careers/3317144/it-job-placements-outstripping-dip-in-other-sectors/