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I worked as an contractor about 3 years ago and then went into full time employment, However I am now back in the contracting market and the pay rates are shocking. For example a job that was paying £30ph 3 years ago is now paying £45ph thats 13.33% per year inflation which I hope you will agree reflects the true rate of inflation(Not CPI,RPI), Merv can try to restrict the big orgs with threats of IR rise but contracting reflects the true market. Inflation is rampant !, I've just had a "Wake up and smell the coffee moment".

Edited by sithclone7
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I worked as an contractor about 3 years ago and then went into full time employment, However I am now back in the contracting market and the pay rates are shocking. For example a job that was paying £30ph 3 years ago is now paying £45ph thats 13.33% per year inflation which I hope you will agree reflects the true rate of inflation(Not CPI,RPI), Merv can try to restrict the big orgs with threats of IR rise but contracting reflects the true market. Inflation is rampant !, I've just had a "Wake up and smell the coffee moment".

There are squaddies fighting and dying in the sandboxes for little over 6 quid an hour. Wind your neck in and be grateful for that £45.

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all very well ...but what about availability ?

Indeed.

Are we talking IT? If so, it depends what you do. In my market, the short term rates certainly seem to have shot up, but quality work is hard to find. I've been on the bench for a few weeks now, and am faced with the choice of holding out for what I think is a decent rate, or taking less and getting back to work.

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Contractors are part of a very fortunate minority

Why fortunate? There are many downsides to contracting - whether you choose to go contract or permie depends on your circumstances and your requirements. Ultimately I don't think there's that much financial difference between the two - by the time you've factored in training, bench time, holiday, sick pay etc.

Personally it suits me because I like to complete a project and move on, rather doing daily maintenance and administration. The clincher for me is that I get to work in a variety of locations, with a variety of systems, and the work doesn't get stale.

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Why fortunate? There are many downsides to contracting - whether you choose to go contract or permie depends on your circumstances and your requirements. Ultimately I don't think there's that much financial difference between the two - by the time you've factored in training, bench time, holiday, sick pay etc.

Personally it suits me because I like to complete a project and move on, rather doing daily maintenance and administration. The clincher for me is that I get to work in a variety of locations, with a variety of systems, and the work doesn't get stale.

I do contract work for the MOD. £45 per hour is cheap!! Our contractors drive alot of miles and our fuel bills are massive!! Profits are shrinking all the time.

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Within banking in London, rates had gone up a lot over the last few years.

However, I know lots of people who've had cuts this year 10-20%

Also seem to be less jobs around. I expect this to continue over the next couple of years.

.... but depends really. Companies sometimes rely on contractors if they don't want to commit long term, so

maybe things will be ok.

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Forget the numbers, Look at the inflationary increase, You can see it everywhere even McDonalds are up by the same amount, The big supermarkets can try to hide it as they sell a wide range of products but in the corner shop and Pub it's going crazy, Unless IR's are increased rapidly it's back to "Sticks and hoops" on the street and your Gran salivating in HER CHAIR in the living room while the family gather round to keep warm throwing books on the fire !, WAKE UP !!!

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Why fortunate? There are many downsides to contracting - whether you choose to go contract or permie depends on your circumstances and your requirements. Ultimately I don't think there's that much financial difference between the two - by the time you've factored in training, bench time, holiday, sick pay etc.

Personally it suits me because I like to complete a project and move on, rather doing daily maintenance and administration. The clincher for me is that I get to work in a variety of locations, with a variety of systems, and the work doesn't get stale.

Sorry but I dont see the downside (yet). In my industry contractors are in demand and are paid about twice that of a staffy. Even when factoring in the benefits of being staff. All based on running a ltd company though.

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From watching my last contract try to recruit, I think there's just fewer people applying for jobs in IT right now - My guess is that people are just too worried to change jobs.

Don't worry about me though - I took this as an opportunity to move onwards and upwards, and am filling my boots as we speak :lol:

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Sorry but I dont see the downside (yet). In my industry contractors are in demand and are paid about twice that of a staffy. Even when factoring in the benefits of being staff. All based on running a ltd company though.

Contractors rates being twice that of a permie is about standard. I don't think it's any coincidence that in my first full time job, we were told that if we wanted to know what we actually cost the business to employ, we should take our salary and double it.

The reasons are numerous, but for an example, talk to a friendly HR colleague and ask about the number of sick days taken by permies and contractors. Most will tell you that the difference is staggering.

I'm not having a pop, because I can see equal merit in being contract or permanent, but as I said earlier, the rewards of working come in many forms, so it depends on your circumstances and requirements. For contractors, the rewards are purely financial, whereas for permies, they are more about stability, pension, paid time off, bonuses etc. It just depends what floats your boat.

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I'm contracting in IT in London, in a fairly lucrative niche. That said, the sector where I work (no prizes for guess what that is) is losing money hand over fist. I've not had an increase in 24 months (nor have I asked for one though), but I am glad to still be employed. What I have noticed is over the last year is large projects are being completed and then teams scaled back to really just keep the wheels turning. This normally equates to getting rid of pricey contractors. And vacancies on jobserve (in my niche) have all but dried up. A few permie jobs but no exciting work. It's pretty obvious that any large-budget projects are getting canned.

Like I said, at this point I'm glad to have a job, and I'm not entertaining the thought of increases. I would not be surprised if a unilateral decrease appeared if / when I renew.

- MD

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for what seems like glorified data input
I invite anyone who would like to do it to go out there and get invoicing. It's only pressing buttons after all!

You do it then.

Quite - to turn Lander's argument around, we could suggest that being a soldier was no more than glorified Cowboys and Indians. Which would be equally incorrect.

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Forget the numbers, Look at the inflationary increase, You can see it everywhere even McDonalds are up by the same amount, The big supermarkets can try to hide it as they sell a wide range of products but in the corner shop and Pub it's going crazy, Unless IR's are increased rapidly it's back to "Sticks and hoops" on the street and your Gran salivating in HER CHAIR in the living room while the family gather round to keep warm throwing books on the fire !, WAKE UP !!!

This is the situation we find our self in, although it is a supply of goods

Our raw materials have gone up over 34% the 3 phase has increased by over 25% and all overheads from business rates to hauliers to machinery maintenance has gone up by similair margins. With the pound depreciating v the dollar our far eastern imports have just effectively increased again by over 10% whilst our plastics costs has increased by 5% (euro) We need to increase our prices by 42% to stay at last years profitability. BUT this wont happen. The current mindset is still in the deflationary previous 10 years and everyone is behind the curve. There are many products being sold at a loss if replacement cost is factored in, which would be the correct way.

If companies do not wake up quickly and increase prices to at least break even there will be a very large proportion no longer able to trade.

There is already shortages of many products/commodities in the UK as imports have been cancelled/postponed which will only exasperate the situation.

This is obviously giving all companies who provide goods and services within the uk major problems and it could well be wise for many to actually turn away business at these lower rates and wait for the inevitable increases and liquidation of much of the opposition especially those who have any debt and who feel the necessity to increase turnover to sell their way out of trouble. These companies will go under as they have always done, those who remember the similair situation in the early 90s or mid 70s will know what I mean. (old saying turnover for vanity profit for sanity really comes into its own)

One thing is for sure, consumers will be paying a lot more money for goods and services next year 50% plus for many things. The era of cheap stuff will be soon over.

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Also, I don't think one skill set within one industry can really be used as a marker for the rest of the economy. Different goods and services have different rates of inflation

I am in construction, subbie, kitchens, for the last few years I have averaged above £50 an hour. But since May this year that has been halved if not worse, and the hours decimated.

At least I have had most of a summer to do as I please. Sods law the sun not been shining to much :(

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Guest Mr Parry
Contractors are part of a very fortunate minority, but no, I don't agree that rates have gone up as much as 50% in 3 years.

Agreed. I've not put my rates up for 3 years. However, having discovered what the assistant foreman takes home every week I'm going to now.

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  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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