Despite everything, pay levels for umbrella contractors are actually up year on year, even if it seems impossible with the current market conditions.
Right, so let me get this out of the way now: yes, I know you’re pretty much in disbelief that pay rates are up in comparison to last year. The fact that advertised salaries for umbrella company contractors has dipped in recent weeks makes it even harder to swallow, but the fact is that it’s true – or at least that’s what the latest job market report from Adzuna says.
The data show that when it comes to limited company and umbrella company contractors, the last 12 months from August 2015 has seen demand rocket upwards. The main culprit is thought to be the skills shortage, as businesses scrambled to find the right mix of workers that had the requisite skills they needed to continue growth. In fact, the last 12 months has seen job vacancies grow by around 2 per cent due to the inability of firms to find permanent workers, resulting in business owners turning to contractors and other temporary workers instead to keep up with demand.
Still don’t think opportunities for contractors have grown historically? Take a look at how things have changed from August of 2014 – since then, there are 27.1 per cent more job roles waiting to be filled. And yes, the average pay rate has dropped by around 0.6 per cent, but rates for contractors has certainly bucked this trend. Adzuna found that temporary HR workers saw their salaries rise by around 3.1 per cent, while contractors working in the travel industry went up by 3.6 per cent. Additional sectors such as information technology, the sciences, and construction have all seen their rates go up by 1.8 per cent, 2.2 per cent and 2.7 per cent respectively as well, so it’s not limited to just a few industries.
So it’s not some big secret. The skills shortage is making freelancers and umbrella contractors a hot commodity right now, and that means anyone working for themselves is going to benefit greatly when it comes to looking for new, lucrative temporary contracts. It’s not so good for permanent workers, of course, but it’s not your fault traditional employees don’t have the requisite skills and talent British businesses need to fill these roles, now is it? Honestly you’re just doing your job – so keep doing it, and enjoy it while it lasts; nobody knows what’s around the corner, what with Brexit looming in just a few weeks!