The latest Office of National Statistics data for employment in the public sector shows varying impacts across the various sectors and regions of the United Kingdom. This is further confirmed by the Report on Jobs data provided by the Recruitment and Employment Confederation (REC) as this also shows a decline in the number of public sector employment opportunities.
The National Health Service is the largest employer in the public sector, with just over a quarter of the total employment being in the public sector. In the first three months of 2010, employment increased in the NHS, although employment declined in public administration and education in some areas.
The REC’s Director of Research, Roger Tweedy says of the latest ONS data:
“Looking ahead, there is no doubt that the overall number of public sector workers will contract. However, once some of the necessary deep-rooted reforms have bedded down and public bodies have become leaner, there will be more need for flexible staffing arrangements rather than less.”
A large percentage of freelancers and contractors are involved in the public sector, but the cuts in expenditure are likely to have an effect on recruitment, varying between regions. This activity is being closely monitored by the REC’s Public Sector Resourcing campaign to assess the levels of employment for the temporary and permanent workforce.
Freelancers and contractors, including umbrella company contractors will continue to provide essential services at a time when public sector expenditure cuts are having a detrimental effect on employment. The flexibility will be crucial to maintaining a service on the front line according to demand, dealing effectively with the highs and lows of demand.
Umbrella company contractors will also be able to maximise their income whilst providing a flexible service, by claiming legitimate expenses incurred wholly and exclusively in the course of their duties.