Latest figures from financial services roles, show a boom in short-term contract roles.
Permanent placements dip
Professional recruitment firms reported that overall placement numbers for permanent roles dipped by 1% in January 2017, while contractor placements simultaneously increased by 2% year-on-year.
Financial services sector scrambles for contractors
Recruitment of professional contactors increased by 2% across the board year-on-year, with much of this activity attributed to a surge in the number of roles within financial services.
Despite the fact that permanent placements dipped by 6% year-on-year in this sector, contract placements increased by almost a quarter (24%) during the same period as uncertainty around the City’s future post-Brexit deters decision makers from committing to permanent hires. Engineering was the only other sector which enjoyed modest growth in temporary hiring, with contract placements increasing by 3%. This is likely to be attributed to the number of large-scale infrastructure projects currently underway across the UK, coupled with acute skills shortages in the sector as reported by industry body, Engineering UK, this month in its annual State of the Nation report.
Average salaries down
APSCo’s figures also reveal that median salaries across all professional sectors dipped by 1.4% year-on-year. This figure is characterized by notable fluctuations in terms of sector, with IT, for example, recording an uplift of 1.8% while in banking average salaries were down 4.7% year-on-year.
Ann Swain, Chief Executive of the Association of Professional Staffing Companies (APSCo) comments: “This data suggests that as the as next month’s deadline approaches for the UK to start its formal withdrawal from the EU, organizations are slightly more hesitant to commit to bringing on board permanent staff. Thankfully, the strength of the UK staffing market lies in its flexibility, and it seems that organizations are bridging gaps with contractors to keep the wheels in motion.”