IT contractors were worried that the UK economy and contractor market would be adversely affected following the referendum to leave the EU. However, this has not been the case.
The Office for National Statistics (ONS) has released the recent unemployment rate in Britain. It shows that the rate has fallen to 4.8 per cent, which is the lowest that the country has witnessed since September 2005.
This fall in the unemployment rate indicates that the UK economy has not suffered any ill-effects by voting to leave the EU. In fact, Minister of State for the Department of Work and Pensions Damian Hinds was extremely happy with the news and praised the resiliency of the labour market in the UK.
This news should make contractors extremely happy, especially since Britain is also witnessing wage growth. Contractors will find that they are still in great demand, and there should be no adverse effect on their rates.
The employment report is from July to September and shows that the number of unemployed in Britain has fallen by 37,000 in the last quarter. This brought the total number of unemployed down to 1.6 million.
On the other hand, the UK has seen an increase in the number of self-employed individuals. This category includes IT contractors and other contractors. According to the ONS, the number of self-employed individuals has increased to 4.79 million and is equivalent to about 15.1 per cent of the entire country’s workforce.
A recent job report by the Recruitment & Employment Confederation reveals that the demand for temporary workers and contractors has increased, and this section of the workforce is enjoying higher wage growth compared to permanent employees. Contractors in the fields of IT, finance and engineering are highly sought after as there is a talent shortage in Britain in these specialised areas.