“Steady progression” looks like the best course of action for the UK labour market in 2011, according to a leading PAYE umbrella company chief.

Rob Crossland, managing director at Parasol, said that contracting was tough during 2010, with roles and rates remaining a challenge.

He suggested that conditions could be similar during 2011, but there is scope for “sensible optimism” as the economic recovery continues and the jobs market recovers.

Writing for his Contracting Matters blog, Mr Crossland expressed confidence that contracting will remain a crucial part of the UK economy, and that service providers will continue to meet challenges facing the industry head on.

“We will be doing our very best to support this and have always been about the long term,” he stated.

Since being formed in 2000, Parasol has managed the legal, financial and administrative affairs of more than 35,000 freelancers, enabling them to concentrate on sourcing and executing placements.

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