Umbrella company contractors still in demand despite economy issues

The latest report taken from the REC this month has revealed that, despite concerns with both the current UK economy and the eurozone, the demand for umbrella company contractors still remains strong.

One of the most positive findings found by the REC’s recent JobsOutlook report was that the majority of UK employers still plan to hire more contractors for both short-term and long-term job contracts.

The REC survey found that 31 per cent of employers said that they plan to increase their number of temporary staff, such as freelancers, umbrella company contractors and temps; in the next quarter, with 49 per cent saying they will be keeping their numbers as they are.

Over the coming three to 12 months, 26 per cent expect to increase their contractors, whilst 59 per cent will maintain their current numbers within this time frame.

This is a time when UK businesses are trying to cut costs due to the uncertain climate, and so many firms decide to use the skills of freelancers or umbrella company contractors, as it saves them paying out the money that they would have to for a permanent worker’s benefits, such as holiday and sick pay etc…

The REC’s Director of Research, Roger Tweedy, said, “Employers took on more staff during the first quarter of this year but confidence is fragile and bad news about GDP growth and from the eurozone will contribute to them feeling a little more cautious about the future.

“Demand for staff is higher in certain sectors and bosses tell us that despite the current rate of unemployment they still predict they will find it hard to fill the vacancies they have for engineers and skilled IT and technical staff.”