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Demand for contractors spikes as skills disappear across the country

by The Editor at 10:23 15/08/22 (News on Business)

As skills disappear across the UK, employers are relying heavily on contract professionals to keep businesses operating as threats of a recession increase, according to agency group, APSCo.

The data revealed that the number of contract roles in the UK grew 13 per cent in July 2022 when compared to pre-pandemic figures (July 2019). In comparison, the number of permanent jobs dropped 23 per cent in the same period. Advertisement This reliance on temporary resources to fill staffing gaps has been steadily growing amid the on-going skills crisis, with APSCo’s data showing that contractor jobs rose two per cent between June and July 2022 and seven per cent between July 2021 and 2022. In comparison, permanent job numbers have dropped, down one per cent from June to July 2022. Perm vacancies also reported a similar decline annually in July. While permanent hiring figures are down for the second month in a row, further exacerbating concerns that a recession is looming, the data revealed a worrying downward trend in average salaries, which fell seven per cent year-on-year. With the UK facing a cost-of-living crisis, this will no doubt exacerbate the shortage of applications for current roles and will further increase the reliance on the contract market. Ann Swain, CEO of APSCo said: “The data is painting a worrying picture for the UK’s permanent recruitment market at a time of continued instability. We are still seeing the impact of the pandemic play out, but to see such significant spikes in contractor recruitment when comparing pre-pandemic levels with today, while permanent jobs decline, highlights that the country’s skills agenda is balancing on a knife’s edge. "Companies are faced with no other choice but to turn to contractors to keep business as usual operations running, but for many, that’s not a sustainable approach. With average permanent salaries also dropping despite the cost-of-living crisis, our economic stability is at stake. "While we await the decision around a new Prime Minister for the country, my hope is that the successful individual prioritises a solution to the UK’s skills crisis.” Tweet -- If you wish to comment on this article, please log in and use the Reply button below. Registering is simple and easy to do online - see 'Join Shout99'. -- The Editor

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