Contractor Growth Achieves Record Levels
2010 has seen a record rise in the number of contractors forming limited companies according to the UK’s largest accountancy firm for Contractors and Freelancers – SJD Accountancy.
The new decade has seen an unprecedented 70% increase over 2009 in contractor limited companies being created.
This latest statistic must come as no surprise when you bear in mind the UK has had almost two solid years of negative job news and high profile mass redundancies.
It now appears companies and government departments are turning away from hiring full time employees and thereby burdening their balance sheets with long term commitments, and are instead turning to the highly mobile and dynamic contractor market, albeit at higher daily rates of pay compared to their full time employees.
Simon Dolan, Managing Director of SJD Accountancy commented, ”We’re not surprised in the least and although the contractor market had been heavily impacted by the recession, it makes perfect sense for both new and suspended projects to be relaunched and managed by contractors. Contractors offer a far more immediate solution to companies wanting to move swiftly and once again begin to build their businesses again. I’m sure the number of contractors will continue to rise throughout 2010 and I am sure many people who were affected by redundancies will also turn to contracting after having their confidence in the so called ‘permanent job’ market shattered.
Despite the looming election and current state of UK plc debt issues, the FTSE 100 has risen steadily in the last few weeks and there does seem to be a renewed confidence in the market. Let’s hope more organisations reignite projects and we can once again return to economic growth.”
Market sectors performing particularly well this year versus last year include:
- Banking & Finance – up 187%
- Project Management – up 177%
- Human Resources – up 133%
- Engineering up – 107%
Even IT is up 26% on last year’s new company formations.
If you have any questions about working through your own UK limited company, as many hundreds of thousands of contractors already do, please don’t hesitate to call 01442 275789 or email: firstname.lastname@example.org.