More businesses turning to contractors to fill skills gaps

New data has revealed that there has been a significant rise in the number of contractors being hired.

This is likely due to the ongoing skills shortages – this past quarter, the number of firms hiring temporary workers has gone up by 69%.

The Totaljobs Hiring Trends Index surveyed over 1,000 HR decision makers in the UK and found that as many as 59% of businesses are experiencing increased competition to find the skills they need.

The report highlights that as a result of these skills shortages, candidates have much higher salary and benefit expectations and demand for remote working is creating a barrier for filling positions.

Julius Probst, Labour Market Economist at Totaljobs, said, “Despite the shallow recession at the end of last year, the UK labour market remains healthy and resilient.

“Job creation persists, and with the economy showing signs of resurgence, hiring activity is on the rise. However, the labour market remains tight, posing challenges for employers grappling with skill shortages.

“While it’s positive to see the various steps that employers are taking to address skills gaps, many of these are only short-term fixes. Only a fifth of businesses have planned for the long term and conducted a skills gap analysis.

“As long as employers look to the short-term then they’ll constantly find themselves on the back foot in the competition for talent. Workforce and succession planning will allow businesses to forecast what skills they need – both in the immediate and near future – and design a talent strategy to ensure they don’t fall into a perpetual skills gap.”

To find out more about contracting please contact Sophie on 01206 591 000 or email sophie.lewis@contractoumbrella.com.