Contractor confidence strong despite imminent EU referendum
The media is awash with opinion pieces from those on both sides of the debate over whether the UK should leave the EU or remain a part of Europe. With the date for the referendum creeping ever closer, there is plenty of speculation over who will be most affected by either outcome, and which sectors could be hardest hit should there be a significant change on the cards.
The Recruitment and Employment Confederation have conducted their monthly Job Outlook survey which has found that contractors remain confident about their prospects despite the uncertain future of the country’s position in Europe. 79 per cent of firms reported that they believe that economic conditions are improving and 90 per cent of them are expecting hiring confidence to either improve or remain the same in the coming months.
This confidence is expected to translate into opportunities for contractors as an increasing number of companies are recognising the important part that contractors play in the success of a number of businesses, specifically when it comes to innovation.
The uncertainty that surrounds the result may not be knocking confidence, but there have been warnings about the effect that the EU referendum could have on the economy. Despite a slight dip in demand for staff, which has been attributed to concerns about a potential ‘Brexit’, the long-term future for contractors looks bright as businesses continue to report hiring plans which will include contractors in both the short and long term.
Large corporations are likely to be responsible for most of the hiring in the sector, with 68 per cent reporting that they are planning to increase their contractor headcount in the next quarter. This represents a significant increase from both last month and February when the same question only prompted optimism in 59 and 46 per cent of businesses respectively. The skills shortage is already increasing the need for flexible workers across a number of sectors, meaning that clients are likely to be looking for skilled workers whatever the result.
Anyone who wants to take advantage of the buoyant market for contractors should use our contractor calculator to ascertain how much they could be earning. For more information on how to organise your finances, we have guides to contractor tax and a FREE 60 page guide to contracting which will answer most of your questions.
For anyone who is ready to take the plunge and go it alone, our expert accountants are always on hand to help. With a wealth of expertise, they can offer advice on everything from starting out to planning for retirement, so call today on 01442 275789 or email email@example.com for details of our services.