Demand for contractors in the UK decreased by 13% in May compared to the previous year while permanent vacancies increased by 1% in the same period, according to new survey data from the Association of Professional Staffing Companies (APSCo).

APSCo’s data, which focuses on professional recruitment, reveals notable variations between the trade association’s core sector groups in terms of hiring activity. While permanent vacancies across both finance and engineering, for example, have increased (by 7% and 5% respectively) permanent vacancies within IT slipped by 6%.     

Meanwhile, the decrease in vacancies for professional contractors was attributed to a fall in the number of roles within financial services. Demand for contractors within financial services fell by 30% year-on-year.

“The shift in the ratio of contract assignments to permanent hires reflects tightening skills shortages as employers look to shore up future talent streams,” Ann Swain, Chief Executive of APSCo, said.

“Uncertainty around the EU referendum in 2016 meant that many businesses turned to flexible workforces to keep the wheels in motion without investing in increasing permanent headcount. Now Brexit negotiations have begun, and the rights of EU citizens who have been working in the UK for more than five years seem to be secure, organisations seem to once again be taking a long-term approach to recruitment,” Swain said.  

APSCo’s figures also reveal that median salaries across all professional sectors increased by 1.5% on the year. This figure is also characterised by notable fluctuations in terms of sector, with engineering, financial services, and IT all recording uplifts (of 1.8%, 4.1% and 0.5% respectively).

“The fact that average salaries have once again increased is further indicative of the current market, with employers willing to invest in attracting and retaining sought after skills and expertise,” Swain said.