While the heat wave might have taken a bit of a dip, pay rates seem to be hotting up this summer! In what can only be good news, temporary workers and contractors continue to enjoy inflation in pay rates. Neil Carberry, the new REC Chief Executive observed, “Across the majority of sectors, both temporary and permanent opportunities are growing, and a lack of candidates means it is no surprise to see starting pay also rising.”
Once again the steep rise in pay rates has been attributed to the ever-declining availability of candidates. However, where staff shortages have not impacted staff placements in previous months, the REC/IHS Markit’s Report on Jobs, reported that the deterioration in candidate availability has resulted in a lower number of professionals being placed into new vacancies. While for contractors looking for new roles this is not problematic, for hiring managers, or employers looking to expand, this is cause for concern. Nonetheless, for temporary workers looking for new contracts, Neil Carberry has remarked, “It’s a great time for people looking to take the next step in their careers, as employers compete for new staff in a tight market.
Interestingly, the rate of temp billings and placements rose at the slowest rate in 3 months. Nevertheless, recruitment agencies have reported that activity levels at client companies are rising for contractor placements and the job market continues to look very promising for the self-employed.
Which locations are best for contractors to work in?
For contractors as a whole, temp billings were highest in the North of England and lowest in the South of England. Furthermore, perhaps unsurprisingly, with the South of England having the lowest rate of temp billings, so too did this area report to have the steepest increase in short-term pay. This is likely in a bid from employers to attract the top talent to their businesses.
Overall, as surmised by Neil Carberry, it is “a candidate’s market out there”. This is positive news for contractors, particularly those who are eager to take advantage of the summer to land new, exciting contracts for higher pay-rates.
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