The number of short term assignments for limited company contractors, sole traders and umbrella company workers is set to drop according to a new report by the Confederation of British Industry (CBI).
Since the release of the official figures regarding unemployment in the UK, economists are predicting a tough 12-18 months for all parties in the permanent and freelance labour market.
The Office for National Statistics has already revealed that more than two and a half million people in the UK were out of work during the first quarter of 2010, and the CBI have suggested that any growth is likely to be slow, particularly in the short to medium term.
A spokesperson from the CBI said that the latest unemployment figures reveal the precarious state of the UK economy and that the small growth in earning was being artificially propped up by the public sector.
Reports in the media this morning are predicting an imminent rise in the cost of borrowing as well as an increase in VAT on consumer goods and services. Perhaps more worrying, is the fact that the Lib Dem / Tory coalition government have yet to rule out the Budgeted rise in National Insurance Contributions. There is still no news on the Tories pre election promise to review IR35.
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