Day rates for contractors enjoy growth

Jo Faragher

Freelancers and contractors will buck the trend for wage stagnation over the next year, as day rates rise.

This is according to data from the latest Freelance Confidence Index, compiled by the contractor group (PCG).

PCG predicts that, while pay in some traditional employment spheres continues to stagnate, increased skills shortages in other industries have led to demand for freelance professionals.

Georgios Nikolaidis, economic policy adviser at PCG said: “Businesses are increasingly utilising highly specialised freelancers to cover for skills unavailable in-house and this trend is expected to continue in the months to come.”

He added that freelancers allow for further job creation by limiting the risks of expansion and facilitating innovation for employers. “As the economy grows, freelancers will continue to propel growth by offering businesses operational flexibility and the ability to manage risk,” he said.

The latest freelance confidence index also revealed that the average length of time that freelancers were out of contract during the second quarter of 2014 was just under two and a half weeks.

To add to this confident mood, a third of freelancers saw an increase in contract availability in the last quarter. Furthermore, freelancers were more optimistic about the economy when looking forward 12 months rather than the next three months.

The best freelance opportunities were concentrated in London and the South East, with roughly half of all work undertaken by freelancers happening in these areas.