Freelance Trends 2011

While there is no doubt that the recession has taken its toll on all forms of recruitment over the last 3 years, there is now some evidence to suggest that, while the construction industry is still in the early and fragile stages of recovery, there has been a measurable increase in the demand for temporary staff in the first 5 months of 2011.

Contract Scotland sees this as being a direct result of main and sub contractors, who have been fortunate enough to pick up work in the last 6 months, remaining cautious in their approach to resourcing, preferring the flexibility of temporary staff over permanent staff while their medium to long term future remains uncertain.

It is encouraging to report that, across all sections of our business (spanning main building/civil contractors, local authorities, consulting engineers and more) there has been a 39% increase in temporary vacancies registered in the first 5 months of the year when compared with the equivalent period last year. This includes a marked increase in the number vacancies registered in both the North East and Highland regions, where the volume of placements has increased considerably since 2007.

What is more encouraging still is that of the vacancies registered, only 18% were subsequently cancelled or withdrawn by the client, in contrast with 43% of vacancies in the corresponding period in 2010.

The remaining 72% of vacancies registered this year have either been filled or remain live and are likely to be filled. This suggests not only that there are more projects being awarded than last year, but that the requirements that are being registered are genuine requirements leading to placements, as opposed to speculative enquiries. These positive findings are marred slightly by the high number of temporary contracts coming to an end which puts candidates back on the market week on week though we are working hard to find continuous employment where possible.

The contracts being registered are short to medium term and with candidates regularly finishing up, there remains a surplus of candidates looking for work. The unfortunate net effect is that we are yet to see any real recovery in hourly rates paid to temporary candidates from the level to which they fell in late 2008/early 2009. A further increase in demand over the summer months, and for a sustained period after that, will be required before we see any upward movement in hourly rates.

What is beyond doubt is that while economic growth remains sluggish, Client confidence will remain low, and against that backdrop the use of flexible temporary resources will be key to how clients manage requirements for additional staff.

For more information on hourly rates and the pros and cons of working freelance please contact John-Paul Toner, Director, 01786 446651, john-paul.toner@contractscotland.co.uk