Umbrella Companies | Unemployment down, but how about the future for contractors?

Unemployment down, but how about the future for contractors?

Professionals and employers are showing signs of increased confidence as the unemployment rate falls, according to Hays Recruitment.

The latest data from the ONS, published on Wednesday, showed an increase in the employment rate for the three month period to August. The number of people out of work fell by 20,000 to 2.45 million. However, in September, the number of people claiming Jobseeker’s allowance rose by 5,300 to 1.47 million; the second consecutive monthly increase.

A spokesperson from Hays said that the job market in the UK is starting to show signs of recovery and employer confidence is rising. However, we have still got a long way to go before we experience a full recovery.

The IT, digital marketing and energy sectors are showing resilience and recruitment in the City is increasing as financial companies continue rebuilding their businesses.

Pharmaceuticals continue to do well, particularly in such areas as health economics, regulatory affairs and statistical programming, due to increased safety measures.

The legal and health, social care and social housing sectors are also recruiting as healthcare professionals enjoy more job security due to skills shortages.

Commenting on the figures, the MD of Adecco, Steven Kirkpatrick, said that employers were still showing signs of caution when it came to recruiting permanent staff, but its branches were reporting a steady increase in the demand for temporary, part-time and permanent employees.

On the downside, the outlook for temps may not be so promising in the long run. A recent survey from Adecco found that nearly 33% of HR professionals will reduce their use of temporary workers as a direct result of the AWR due to come into force next October.

There are currently more than 1.5 million temps working in the UK and it is vital that HR professionals understand the true value the flexible workforce brings to the economy.

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