Market Research Finds Contractors Getting Better Pay Rises than Permanent Workers

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20th July 2012 16:06 - Professional Services

The Salary Survey for 2012 by recruitment company Robert Walters has shown that UK salary rises have not kept pace with inflation over the past year, although contractors are faring better.

While permanent salaries in Britain have increased by 1.5% year-on-year, contractors have seen a rise in their daily pay rate of 3.7%.

Robert Walters UK Managing Director, Chris Hickey, commented: “The fact that contract rates have grown almost two-and-a-half times as fast as permanent salaries highlights where businesses’ priorities lie. Employers are focusing on projects that maximise efficiencies or work they consider business critical and are prepared to pay in order to secure the best contractors. It is also reflective of workloads remaining high but employers being hesitant to commit to recruiting on a permanent basis.”

In addition, the market research revealed that London and the south-east of England dominate the jobs market with the biggest pay increases – permanent salaries in the capital have risen 1.8% on average and 2.4% in the Thames Valley and the south-east region. This compares to 0.4% in the Midlands and 0.8% in the north of England.

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