The economy is in a difficult place, post credit crunch, with growth stagnant and trouble brewing in the Eurozone. It is easy to become negative about the whole situation, but for those of us old enough, or for students of the dismal science, of which I am both, we know recessions come and go, and also when you are in one it feels as though nothing will bring you out of it.
Well what does all of this mean to freelancers and contractors?
If employers are feeling uneasy about making a permanent commitment and still need the work to be done, then the employer will take on a flexible temporary resource. Yes a lot of this work will be for low skilled temporary workers, but placements in professional occupations such as IT Contractors, engineering contractors and accountancy and finance workers will be in demand.
This has been backed up by recent figures from the association of Professional Staffing Companies which has shown temporary job placements in June 2012 were 7% higher than in June 2011 whilst permanent jobs were 5% lower in the corresponding period.
We believe in the short term that competition will increase in the contractor market for good contract roles, a reason for this being the decline in permanent placements, and people who would have normally taken these roles being drawn into the freelancer and contracting sector.
For experienced freelancers and contractors with up to date skill and a proven track record this should not prove a difficulty, for new entrants to the world of contracting, or for contractors with a limited skill/experience set, the competition for the prime contracting roles will be higher.
Freelancer Accounting are a leading supplier of accountancy services to freelancers and contractors in London and the South East of England.