Demand for PAYE Umbrella Contractors Stayed Strong in January, REC JobsOutlook Reveals

Project-hunting contractors working through umbrella companies may draw some cheer from the latest JobsOutlook report from the REC, which confirms that demand for temporary workers remained strong in January despite the passing of the first AWR equal entitlements deadline over Christmas.

As we’ve reported here previously, some experts had predicted a January bloodbath of job losses following the AWR deadline, while others had forecast much shorter temporary placements for skilled PAYE umbrella contractors due to the legislation. However, the REC report, which is based on a poll of 600 UK employers, suggests that the AWR has not had the apocalyptic effect on temporary worker demand that some had feared. 27% of employers plan to increase their temporary workforce and 54% intend to maintain it. In other words, 84% of employers do not plan to decrease their use of agency workers, including contractors, despite the AWR.

Prospects for permanent workers were less encouraging, however, with the number of firms planning to take on new permies dipping two points over the month to 63%. 31% plan to maintain their permanent workforce at current levels.

The REC’s Director of research, Roger Tweedy, said that the continuing sovereign debt crisis in the Eurozone was the most likely culprit for the growing caution amongst employers. But even so, the outlook for temporary workers remained encouraging despite the AWR, he went on, adding:

“The vast majority of businesses plan to maintain or increase their use of temporary staff which indicates that flexible working options will continue to provide an important outlet for employers and job-seekers.”

Source:

http://www.rec.uk.com/press/news/1955