31st January 2012

Contractors could benefit from dip in economy

The UK economy dipped back into recession during the final three months of 2011, shrinking by 0.2 per cent. Official data confirmed the negative results, although they may require revision as more information becomes available, prompting renewed concerns about a double dip recession.

It may be that things start to pick up again in 2012, especially with the Olympic Games lined up. But while things remain uncertain many businesses might start to consider recruiting for contractor jobs instead of hiring permanent workers they might not have the work for.

Year-on-year the data showed a minimum GDP rise of 0.8 per cent, although they are still subject to revision. But should the next quarter show negative growth, the country will be deemed to be officially back in recession.

To avoid this occurring, the Bank of England's Monetary Policy Committee is expected to step up its stimulus efforts with economists suggesting that further quantitative easing looks like a near certainty during the months ahead.

Chancellor of the Exchequer, George Osborne added that the issue is exacerbated by problems with Britain's neighbours: "Britain has substantial economic problems, debt built up over the past 10 years, and we are dealing with those, but the truth is that dealing with those problems is made more difficult by the situation in the eurozone.”