12th January 2012

Contractor pay takes a hit

Contractor pay has taken a hit in the difficult economic climate as the country continues to struggle to return to growth.

The latest data from the Recruitment and Employment Confederation (REC) revealed that pay for contractors and temporary workers showed a slight decline in December of last year, while permanent salaries remained flat.

In addition to this, there was a decline in the number of temporary billings recorded for the first time since 2009. However, permanent positions looked to be in a more precarious position as postings have been declining for several consecutive months.

The data could prompt workers to take a closer look at their pay and contractor tax situation to check that they are getting the most from their salary.

Fortunately, the problem does appear to be affecting all sectors, as Kevin Green, chief executive of the REC remarked: “Employers are still hiring and using temps in large numbers.” He noted that engineering, technology, IT and office contractors are still in demand, while nursing, medical and care workers are also seeing a surprisingly high level of demand.

Mr Green added that the finance and accountancy market has been in negative territory for two consecutive months, while the hotel and catering sector is also struggling.