Contractor rates of pay increase significantly

(3 minutes to read)

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Contractors will be pleased to learn that a recent report has shown positive results for the self-employed sector over the last month.

The latest KPMG and REC Report on Jobs revealed that billings expanded at the quickest pace since May, with hourly rates also seeing significant growth.

All 10 monitored job categories noted higher vacancies for temporary and contract workers, with the nursing/medical/care sector ranking the highest in demand.

James Stewart, Vice Chair at KPMG, commented, “Whilst Brexit may be dampening overall business investment, firms continue to hire new staff at near record rates. With the jobs market so heated, businesses across the country, of all types, are struggling to find work, ready staff. Particular pinch points include IT, engineering, nursing and care staff. Some clients tell us they are seeing the worst period of staff availability for 20 years. A four-decade low in unemployment and a dwindling supply of EU workers means good candidates are at a premium.”

Neil Carberry, Chief Executive at the REC, added, “Skills shortages are a long-standing feature of our economy. They affect the ability of employers to grow and create jobs. That we have shortages in key skilled roles like IT, engineering and health is a sign that the right training and support is not in place for people to progress into these jobs from lower skilled work.

“While firms spend a lot every year on training, this mismatch persists. It’s time for businesses and government to work together to address it. Renewed investment from firms must be partnered with openness from Government to doing things differently, starting with the reform the Apprenticeship levy needs, turning it into a skills levy that supports all workers to have access to the training they need.”

“A new partnership is also necessary in our NHS. As we head towards winter we are once again seeing potential shortages of nursing, medical and social care staff. Working with recruiters to address this should be a Government policy priority – without access to agency workers key front line services could be put under threat.”

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