Since the Brexit vote, IT contractors have seen higher pay rates and longer contracts, which indicates businesses’ caution over permanent recruitment.
IT contractors have seen their pay rates increase and are working on longer projects since the UK’s EU membership referendum, in a hint that business are being cautious about the future.
With uncertainty over prospects for businesses when the UK leaves the EU, hiring contractors is less risky than making long-term investments in permanent staff.
The figures, from accountancy firm Nixon Williams, which questioned 600 IT contractors, show that 20.5% of them have seen their daily rates increase, compared with 19.5% just before the referendum on 23 June last year. Meanwhile, 16.6% of contractors have recently had their rates reduced, compared with 18.6% before the referendum.
Derek Kelly, CEO at Nixon Williams, said the current uncertainty was likely to be less damaging to contractors than to permanent employees.
