Umbrella Companies | Increased fuel costs puts contractors off commuting

Increased fuel costs puts contractors off commuting

Recruiters have reported that temporary workers and umbrella company contractors are now reluctant to travel long distances to get to work due to the increasing cost of fuel.

John Salisbury, the MD of de Poel, said that increasing fuel costs directly impact the distance that temps are willing to travel to an assignment. If the price of fuel continues to rise, he suspects that we will witness a reduction in demand for contractors and a workforce that seeks work nearer to home.

de Poel supports plans to have a fuel price regulator, which would mean the money the government receives from fuel companies would vary based on the wholesale price.

Reed has also witnessed a change in attitude from temporary workers in the past three months. Temps now put commuting distance as a key priority if they cannot reach an employer’s site easily on public transport. Travel distance now has a higher priority than either the hourly rate or the nature of work.

A lot of recruitment candidates are no longer willing to undertake long commutes if they are unable to use public transport, according to Reed’s group MD, Richard Smith.

It’s not only contractors who are concerned over rising fuel prices. A recent survey of 991 people, conducted by Ipsos MORI, found that 68% of respondents were concerned about the cost of filling up at the pumps. 32% also said they were concerned about the cost of travelling by train.

People also seem to be less worried about the damage transport does to the environment than they were last year. 15% cited it as their number one concern compared to 18% in 2010.

The Ipsos MORI survey was conducted on behalf of the RAC Foundation and its director Professor Stephen Glaister said the results show the public has no interest in the government’s grand transport plans for the future. They are interested in the here and now and rising fuel prices are now a critical issue.

This time last year, a litre of unleaded cost 117p, today it costs around 132p.

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