The Recruitment and Employment Confederation's (REC) Technology Demand and Supply report indicates that there are currently more ICT-ready candidates than jobs opportunities.

Clients are likely to benefit if the report accurately reflects the state of the market, as they should be able to access skilled umbrella contractors or other IT experts quickly and cost-effectively.

In better news for freelancers, the study also pointed to an increase in demand for SQL, C#, .NET and Linux skills.

Jeff Brooks, chair of REC Technology said: "It is very encouraging to see that companies will still invest in technology to develop their businesses even when there is a tough economic landscape.

"I look forward to the upturn developing at an even stronger rate in the months ahead."

Contractor UK reported recently that a high level of IT demand was applying upward pressure to contractor rates.

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Recruitment and Employment Confederation

The Association of Recruitment Consultancies (ARC) says firms should adopt a cautious approach to the introduction of equal employment rights, at least until they are aware of their exact responsibilities.

Adrian Marlowe, chair of ARC, was speaking after ASDA introduced equal pay and benefits for temps working in its supply chain.

He said it is "unrealistic" to claim that the supermarket firm is "trailblazing a path that everyone else should follow", given the significant cash reserves of its parent company Wal-Mart.

"ARC has consistently encouraged a realistic approach to these regulations and we continue to warn against an over-zealous implementation of the EU directive which undoubtedly will threaten jobs and the benefits of a flexible workforce," Mr Marlowe said.

The directive measures are due to be implemented in the UK in autumn 2011.

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Association of Recruitment Consultancies

The government has pledged to offer financial support to older professionals keen to enter the world of self-employment.

Yvette Cooper, secretary of state for work and pensions, has announced the details of a new £10 million initiative designed to help over-50s find new employment roles.

In a speech made to the Social Market Foundation, she said the government would also look to provide training and other assistance to individuals interested in working as a freelancer or starting their own limited company.

Phil Flaxton, chief executive of Work Wise UK, claimed that older workers are often still discriminated against in the UK, where there is a well-established culture of ageism.

He noted: "There are other countries that are in the European Union which have a different approach to people in their advancing years.

"They don't assume that because somebody is of a certain age that they can't do their job as competently as a younger person."

Mr Flaxton claimed that the knowledge, skills and experience picked up by professionals over their careers can prove invaluable to employers.

Employers can do far more to help younger workers to develop their career prospects, according to the Recruitment Society.

The comments were made after a report by the Resolution Foundation said that low earners, particularly those in the 25-34 age group, struggled more during the recession.

According to the organisation, this is because their vulnerable position has been overlooked compared to higher earners or those on benefits.

Steve Huxham, chairman of the Recruitment Society, claimed that although the government has provided extra help and support for younger people and lower earners, it may be too late for some.

He commented: "From an employer point of view, for those people who are in work, and are younger and on a lower income, there is always the issue of how much responsibility should be with the employer - particularly the larger ones - to train and develop their people.

"Some employers are very good [at this] but it is very patchy."

Research conducted by Incomes Data Services recently indicated that private sector pay levels remained stable in recent months.

Public sector organisations should consider hiring contractors and other temps as they seek to manage costs, it has been claimed.

According to Lisa Boutineau, director of the Recruitment and Employment Confederation in Scotland, flexible staffing can help increase efficiencies in the delivery of front-line services.

She said it is important that recruitment agencies continue to work with the public sector to resource staff effectively.

"The use of interim and specialist contractors who have the proven skills to be put to work quickly and for a limited duration can avoid the costs associated with permanent employment within the public sector," Ms Boutineau commented.

"This is a particularly important consideration as the purse strings of the public sector begin to tighten."

According to John Brazier, managing director of PCG – the organisation formerly known as the Professional Contractors Group – the flexibility of freelance workers should be seen as a major attraction to businesses.

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Recruitment and Employment Confederation

Umbrella contractors and other professionals are literally handing money to the taxman by failing to maximise their annual Isa allowances, it has been claimed.

David Kuo, director of the financial website Fool.co.uk, said that many savers are still failing to take advantage of their yearly tax-free allowance.

Speaking ahead of the 2009-10 tax year Isa deadline of April 5th, he urged consumers who are yet to transfer cash into an individual savings account to do so soon.

He stated: "If you have some money you want to put into an account - no matter how much - if you haven't opened or used up your Isa then get a move on.

"The amount you put in is not relevant. Otherwise you are just penalising yourself."

Mr Kuo noted that given the 0.5 per cent base rate, savers are likely to find that Isas pay a higher rate of interest than ordinary savings accounts.

Finding an account that pays more than the level of inflation "will be as hard as finding hens' teeth" until interest rates rise, he claimed.

Consumers over the age of 50 may place £5,100 in a cash Isa and £5,100 in a stocks and shares account, with all other consumers able to place £3,600 in the two respective Isas.

The Association of Recruitment Consultancies (ARC) has called the legality of the Agency Workers Directive draft regulations into question.

According to the organisation, the draft contains new aspects that were not raised in the consultation process and should not be introduced via secondary legislation.

ARC claims that since recruitment businesses are excluded from the scope of the directive, they cannot lawfully be made liable for the employment rights to be acquired by agency workers.

Adrian Marlowe, chairman of the organisation, said the argument does not affect the rights of agency workers to equal treatment or enforceability against the actual temporary work agency or the hirer.

"It is unfortunate that so little time has been given to consider these regulations when we have pressed for more time," he stated.

"However we are where we are and everyone can be assured that the ARC will take whatever action is required to clarify this issue as it could have serious consequences for agencies."

The Agency Workers Directive is set to be implemented in the UK in autumn 2011, providing equal employment rights for temps who spend 12 weeks on any placement.

Links:

Association of Recruitment Consultancies

IT contracting opportunities continued to increase during the final quarter of 2009, it has been reported.

According to the latest e-skills Bulletin, there were 26 per cent more placements available between October and December than in the third quarter of the year.

This increase in demand for IT professionals came after six successive quarters of falling placement numbers.

Latest figures from e-skills indicate that there are 1.061 million IT workers across the UK, with 1.33 candidates for each role advertised.

Last week, Adrian Marlowe, chairman of the Association of Recruitment Consultants, claimed that the end of the recession had encouraged more employers to invest in their IT departments, both in terms of new technology and professional expertise.

"Those organisations that have larger IT systems are taking the view that they need to upgrade, hence the IT requirement in that regard," he said.

Freelancers looking to work through a PAYE umbrella company should ensure they fully research any service provider before committing to this course of action.

According to industry resource site Contract Eye, contractors should be suspicious of any firms which claim to offer vastly superior rates to their rivals.

The website explained that the all PAYE umbrella companies operate under the same rules and regulations, meaning there are "no magic formulas" to be taken advantage of.

Contract Eye said it is "vitally important" that contractors do not sign up for schemes which seem too good to be true.

"[There are] no elaborate schemes and no creative accounting that allows one company to give you a higher net pay than another," it commented.

Parasol is one of the largest and best-established PAYE umbrella companies operating in the UK, taking care of the financial, legal and administrative affairs of 35,000 freelancers.

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Contract Eye

Supermarket giant Asda has introduced equal treatment for agency workers it hires, according to reports.

The Times revealed that the firm has improved temp employment conditions, 18 months before the Agency Workers Directive is set to come into force.

Anne Fairweather, head of public policy at the Recruitment and Employment Confederation (REC), said the organisation fully supports that agency workers - hired by Asda for meat and poultry handling - are properly rewarded.

However, she expressed disappointment that the firm had acted without first speaking to bodies such as the REC.

"We would encourage them to consult and involve all parties moving forward, to ensure that their proposals are workable in practice," Ms Fairweather added.

When the Agency Workers Directive is implemented in the UK in October 2011, agency temps who have worked on a placement for 12 weeks will be entitled to the same pay and benefits as permanent staff.

The UK labour market recovery is likely to be halted by public sector spending cuts, it has been claimed.

According to the Chartered Institute of Personnel and Development (CIPD), the UK will be particularly affected by a reduction in government-funded jobs compared to the US.

While just 17 per cent of workers are employed in the US public sector, this figure is 21 per cent in the UK, CIPD claims.

Economists have widely predicted a reduction in government spending to reduce the national budget deficit, irrespective of the result of the upcoming general election.

Gerwyn Davies, public policy adviser at CIPD, says this could result in hundreds of thousands of jobs being lost in the UK.

"This will have a greater impact on women than men, who make up more than a third of the total public sector workforce compared to just one-sixth of the private sector," he added.

According to the Office for National Statistics, the UK unemployment rate is currently 2.46 million.

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Chartered Institute of Personnel and Development

A rise in the number of professional IT vacancies was witnessed during February 2010, according to one specialist recruiter.

The Ashdown Group Jobs Index indicates that 14.25 per cent more roles were available than in January – further evidence of an apparent jobs market recovery.

John Lynes, director of the Ashdown Group, said the firm had predicted steady growth within the IT sector and the figures supported this forecast.

However, he claimed that current levels of demand are unsustainable and will add upward pressure to salaries over the coming months.

Given that more employers are seeking IT professionals, contractors may be able to command higher rates for their services, Mr Lynes added.

This echoed comments made by Contractor UK earlier this week, when the site urged freelancers to maximise their earning capacity while demand remains high.

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Ashdown Group

Businesses are increasing the number of IT professionals they are taking on, it has been reported.

According to Adrian Marlowe, chairman of the Association of Recruitment Consultants, the end of the recession has encouraged many businesses to invest in their IT systems.

Consequently, they are turning to IT experts to manage system upgrades, he suggested.

"Those organisations that have larger IT systems are taking the view that they need to upgrade, hence the IT requirement in that regard," Mr Marlowe said.

He commented that the banking sector was proving to be a major source of IT jobs – comments which may interest umbrella contractors seeking employment opportunities.

The latest Recruitment and Employment Confederation/KPMG Report on Jobs also highlighted an increase in demand for IT staff.

Contract and other temporary placement numbers continued to increase during February, the study found, although the rate of growth slowed in this sector of the labour market.

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Association of Recruitment Consultants

The UK jobs market is continuing on the road to recovery, it has been reported.

Commenting after the firm's Report of Jobs indicated that permanent staff billings rose to their highest level in two-and-a-half years during February, KPMG partner and head of business services Bernard Brown expressed great hope for the future.

He noted that job placements are growing at their fastest pace since July 2007, with both vacancies and salaries increasing.

Mr Brown added: "Sectors such as IT and computing, as well as engineering and construction, that were particularly hit by recession are clearly on the rebound.

"However, this all comes with one big warning: The impact of the inevitable public sector recession on the jobs market has yet to be felt and will be played out over the next six to 12 months."

Earlier this week, Contractor UK claimed that conditions are improving for freelance workers with expertise in IT.

He claimed that rising demand for their services is applying upward pressure on contractor rates.

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KPMG

The number of temporary work billings continued to increase during February, it has been reported.

According to the latest Report on Jobs from the Recruitment and Employment Confederation (REC) and KPMG, the overall outlook for jobseekers continued to improve last month.

The rate of temp and contractor jobs growth slowed compared to January, but the market still expanded as more employers sought to increase their headcounts.

Kevin Green, the REC's chief executive, said high-end sectors such as IT showed "particularly strong growth" during February.

However, he warned that the public sector could be set to make job cuts, which will heighten the need for organisations to consider the use of flexible working models.

Last week, Tony Dolphin, senior economist for the Institute for Public Policy Research, offered encouragement to umbrella contractors by claiming that employer confidence should improve as the economic recovery continues.

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Recruitment and Employment Confederation