The CIPD have today issued a news release which states that any post-election spending cuts could lead to 500,000 job losses in the public sector and that this in turn could have a potentially damaging effect on the umbrella company marketplace.
It is possible that public sector cuts could affect the Recruitment industry as a whole but in general, Contracting is anti-cyclical and the steady uptake in the private sector could counter balance any public sector fall.
If an umbrella company has a critical exposure on public sector contractors via, say, a specific Agency then there could be issues.
I think it is also important to mention that the definition of a public sector contractor is also relevant. There is a marked difference between an agency nurse (for example) and an IT contractor being used on an NHS project. In that example, and there are many, there is a key difference about where the impact will be most felt.
I predict a stable year for the professional umbrella company despite continued land grab strategies (free offers and high incentives to join) at the other end of the market.
by Rob Crossland
CIPD predict fall in Contractor roles in Public Sector
April 21, 2010 in Contractor News, Freelancing, Industry comment, Recruiter News
The CIPD have today issued a news release which states that any post-election spending cuts could lead to 500,000 job losses in the public sector and that this in turn could have a potentially damaging effect on the umbrella company marketplace.
It is possible that public sector cuts could affect the Recruitment industry as a whole but in general, Contracting is anti-cyclical and the steady uptake in the private sector could counter balance any public sector fall.
If an umbrella company has a critical exposure on public sector contractors via, say, a specific Agency then there could be issues.
I think it is also important to mention that the definition of a public sector contractor is also relevant. There is a marked difference between an agency nurse (for example) and an IT contractor being used on an NHS project. In that example, and there are many, there is a key difference about where the impact will be most felt.
I predict a stable year for the professional umbrella company despite continued land grab strategies (free offers and high incentives to join) at the other end of the market.
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