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Average UK contract rates down, marginal increase in London and South East
Posted Jun 24, 2011
The latest Parasol Insight Index shows that the average umbrella company contract rate has fallen over the past year, however the gender gap has grown, as has the pay gap between regions.
The bi-annual survey, which uses data from a bank of over 16,000 umbrella contractors, shows that the average contract rate has fallen from £34.41 to £33.12 over the past year, as rates continue to be squeezed as the economy continues to flatline.
The gap in rates between the sexes has increased to just over £3,200 per year based on a 37.5 hour week and 47 weeks working per year. In 2010, the gender gap was a mere £2,643.
Rob Crossland, CEO of the umbrella provider, commented:
"Contractors, like the majority of workers in the UK, have seen a squeeze on their hourly rate in the last 12 months. When you look at this in addition to the competition that is out there for each contract then the basic laws of supply and demand mean rates have suffered as a result."
Interesting stats from the survey
The survey turned out some other interesting contract rate statistics:
Unsurprisingly, the average rates of contractors in London and the South East continue to be the highest in the country - with both regions registering slight increases - London is up from £36.16/hr to £36.88, and the South East up 10p/hour to £36.74.
Average rates are lowest in the East Midlands (£25.81/hr), Northern Ireland (£27.25) and the North West (£28.64).
Rate vary wildly by industry sector. The highest average contract rates can be found in the Oil industry (an impressive £90/hour), followed by Construction (£59.50), Financial Services (£48.37) and Health (£45).
Crossland remains upbeat about the outlook for contractors over the coming year:
"We firmly believe though that contractors have a massive role to play in the UK's economic recovery and in the last two months we've seen an increase in the number of contractors enquiring into our service so prospects are picking up."
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