Contracting market in decline?
Discussion
I've worked as a contractor for 15+years in ERP and I'm really struggling to find any roles currently. There have been occasions in the past where I have been out of work for a few months but there were always roles that I could apply for, even if they weren't my specific skillset. But 2023 has been barren so far. There are perm positions that equate to a 3rd of a contractor rate, even though they are still being charged out at the same day rate to the client. But the numbers don't work for me with 2 small children and a wife still at home to look after them.
Is anyone experiencing similar? I don't know if there is less client work about or whether a lot of contractors panicked during Covid and took low paid perm roles, so now there isn't the demand for contractor work? Feel like maybe I need to move into a different market but can't afford to take a big pay cut to start again. Getting a bit bored or trawling all the jobsites every morning with nothing coming up
Is anyone experiencing similar? I don't know if there is less client work about or whether a lot of contractors panicked during Covid and took low paid perm roles, so now there isn't the demand for contractor work? Feel like maybe I need to move into a different market but can't afford to take a big pay cut to start again. Getting a bit bored or trawling all the jobsites every morning with nothing coming up
I would say the same, I work in data migration and although i'm in contract until the end of the year I do keep an eye on linkedin etc and have noticed that there is hardly anything about, also I can't remember when I had a call from a recruiter even for something totally unsuitable.
My partner is finishing at the end of next month and has never been out of work going perm -> contract -> contract without a break i'm a bit concerned how she is going to handle having no work and nothing to apply for even.
I'm not sure what the reason for the slow down is, but it reminds me of 2008/ 2010 level of activity.
My partner is finishing at the end of next month and has never been out of work going perm -> contract -> contract without a break i'm a bit concerned how she is going to handle having no work and nothing to apply for even.
I'm not sure what the reason for the slow down is, but it reminds me of 2008/ 2010 level of activity.
Different sector here (Mech Engineering) but yes, a definite reduction of available contract roles this year.
I was out of contract for 2 months earlier this year. Previously, the longest I was out was 2 weeks. I had loads of conversations with agencies but virtually everything was for perm roles, which doesn’t appeal to me as the net income is less than half of what I can earn contracting.
I am now in a contract which looks like it could be quite long term, but it does look like the changes to IR35 have had the effect of making clients look on using contractors less favourably.
I was out of contract for 2 months earlier this year. Previously, the longest I was out was 2 weeks. I had loads of conversations with agencies but virtually everything was for perm roles, which doesn’t appeal to me as the net income is less than half of what I can earn contracting.
I am now in a contract which looks like it could be quite long term, but it does look like the changes to IR35 have had the effect of making clients look on using contractors less favourably.
I bailed earlier this year and moved to perm. The supply of contracts had definitely tanked, and the absurd volume of people chasing a vanishing supply was noticeable.
Ultimately the 'inside' IR35 rules made it no longer commercially viable.
The perm world works for me now. Am in the kids-at-uni phase so some predicatability is useful.
I always mmanaged to get a steady pipeline of work, with only a few gaps over the years. One of the biggest changes is that my 'planning horizon' is now much farther out, rather than 6 months.
Ultimately the 'inside' IR35 rules made it no longer commercially viable.
The perm world works for me now. Am in the kids-at-uni phase so some predicatability is useful.
I always mmanaged to get a steady pipeline of work, with only a few gaps over the years. One of the biggest changes is that my 'planning horizon' is now much farther out, rather than 6 months.
TEKNOPUG said:
All my work is always project related, with defined schemes of work and end dates etc. So IR35 has never been an issue provided the contracts are worded correctly.
Yes, it was the same for me but when companies makes board-level 'everbody inside' decisions ultimately the status itself becomes moot.TEKNOPUG said:
All my work is always project related, with defined schemes of work and end dates etc. So IR35 has never been an issue provided the contracts are worded correctly.
I completely agree with this. Unfortunately, in my experience, most HR departments don't seem to understand how contracting and/or IR35 works. I have regularly had to go back to HR departments and explain to them why their contract is not suitable and I can't sign it until wording and terms are amended. All my work is project related but mainly with big organisations whose HR departments see IR35 as a question of "do you want massive tax liability or not", so not much outside going on.
Contract market was pretty good towards end of last year with rates up through the roof, but right now there's very little being advertised. It's not the right time of year as summer is always a bit quieter, but think companies are being a bit more cautious with spending. Could do with a change at the end of this year and may not have many options.
Contract market was pretty good towards end of last year with rates up through the roof, but right now there's very little being advertised. It's not the right time of year as summer is always a bit quieter, but think companies are being a bit more cautious with spending. Could do with a change at the end of this year and may not have many options.
Seems to be the opposite for me currently.
I've have a few interviews and received offers which I have declined. I must get at least 1-2 calls per week about live roles and it's a 50/50 split inside/outside currently.
From where I am sitting where I am not actively chasing job boards, recruiters, LinkedIn etc it seems more buoyant since the pandemic.
I've have a few interviews and received offers which I have declined. I must get at least 1-2 calls per week about live roles and it's a 50/50 split inside/outside currently.
From where I am sitting where I am not actively chasing job boards, recruiters, LinkedIn etc it seems more buoyant since the pandemic.
Lots and lots of work in energy (og, nuclear, renewables).
Lots of people quit the industry or retired in the last downturn meaning a huge shortage of talent.
More and more clients realising they need to offer outside ir35 gigs to get decent people and rates are climbing (if not quite back to the mad days of the early 2010’s but 30-50% higher than they were 5 years ago).
Smaller operators paying great rates for part time people because they can’t get and don’t want permies.
Good times
Lots of people quit the industry or retired in the last downturn meaning a huge shortage of talent.
More and more clients realising they need to offer outside ir35 gigs to get decent people and rates are climbing (if not quite back to the mad days of the early 2010’s but 30-50% higher than they were 5 years ago).
Smaller operators paying great rates for part time people because they can’t get and don’t want permies.
Good times
Edited by Lefty on Thursday 20th July 16:24
Lefty said:
Lots and lots of work in energy (og, nuclear, renewables).
Lots of people quit the industry to retired in the last downturn Meaning a huge shortage of talent.
More and more clients realising they need to offer outside ir35 gigs to get decent people and rates are climbing (if not quite back to the mad days of the early 2010’s but 30-50% higher than they were 5 years ago).
Smaller operators paying great rates for part time people because they can’t get and don’t want permies.
Good times
I hope you're right-y. lefty.Lots of people quit the industry to retired in the last downturn Meaning a huge shortage of talent.
More and more clients realising they need to offer outside ir35 gigs to get decent people and rates are climbing (if not quite back to the mad days of the early 2010’s but 30-50% higher than they were 5 years ago).
Smaller operators paying great rates for part time people because they can’t get and don’t want permies.
Good times
Lefty said:
Lots and lots of work in energy (og, nuclear, renewables).
Lots of people quit the industry or retired in the last downturn meaning a huge shortage of talent.
More and more clients realising they need to offer outside ir35 gigs to get decent people and rates are climbing (if not quite back to the mad days of the early 2010’s but 30-50% higher than they were 5 years ago).
Smaller operators paying great rates for part time people because they can’t get and don’t want permies.
Good times
Same for me - mechanical engineering, if you are SC'd it’s a premium, DV - another premium on top.Lots of people quit the industry or retired in the last downturn meaning a huge shortage of talent.
More and more clients realising they need to offer outside ir35 gigs to get decent people and rates are climbing (if not quite back to the mad days of the early 2010’s but 30-50% higher than they were 5 years ago).
Smaller operators paying great rates for part time people because they can’t get and don’t want permies.
Good times
I’ve never seen anything like it in engineering in 37 years, and neither have the 2 contract agency people (both decent folks) I know.
Plenty of companies are now realising that inside contracts are eliminating 2/3 rds. of the pool.
Or the step up in rates to keep them inside is unacceptable.
C&I engineers - it’s almost “name your price” - I had an email from an agency this morning - do I know anyone who can fill this SC’d C&I role? £105.83/hr outside for the right person.The person who left that role went to a premium of 20% on top of that.
Yep that’s very familiar, so much CAPEX is being spent on projects so quickly the resourcing just can’t keep up.
I was approached on a name-your-rate role for an oil company I have previous experience with but PAYE only and with a team I didn’t particularly like so i declined. Role still not filled and that’s not a one-off.
People will say it can’t continue but most of my clients (I have 13) have portfolios of work for 10-15 years and don’t have the people needed to deliver them. It should see my career out.
I was approached on a name-your-rate role for an oil company I have previous experience with but PAYE only and with a team I didn’t particularly like so i declined. Role still not filled and that’s not a one-off.
People will say it can’t continue but most of my clients (I have 13) have portfolios of work for 10-15 years and don’t have the people needed to deliver them. It should see my career out.
Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff