During the tough economic times, it could be better for umbrella contractors to take a pay cut to stay in work than face large spells of time without a contract.
According to new research conducted in Spain, people who become unemployed earn less in their next job than they did before they were made redundant.
Conducted at the University of Alcala, the study showed that people who go through a period of workplace inactivity are more likely to see their salaries plummet.
Garcia Serran, lead researcher behind the investigation, said: “We wanted to find out what effect unemployment and inactivity had on salaries.
However, umbrella contractors can rest assured that the dip in salary associated with unemployment is only temporary.
Mr Serran said: “These figures recover quickly and the differences disappear within a year.”
Recently, the British Chambers of Commerce warned that unemployment in the UK could continue to rise in the coming year.