Despite concern from recruiters over Brexit, many believe it will boost demand for contractors and temporary workers, according to data from UK-based contract solutions provider ADVANCE.

 The survey data from ADVANCE showed that 35% of respondents predicted contractor demand will continue at current levels during the Brexit negotiations (between now and March 2019), with 20% saying they weren’t sure. In contrast, 42% expected demand for contractors to increase once the UK has left the European Union, compared to 15% who anticipate a fall.

Meanwhile, 55% of respondents thought Brexit will have a negative impact on them as a recruiter and the UK recruitment industry in general. On the contrary, 26% anticipate a positive impact while 14% think there will be no change.

More than half of respondents, or 52%, said they hadn’t noticed a change in levels of demand for contractors since the June 2016 referendum, with 27% reporting increased demand and 21% experiencing a decrease.

“Our findings show that if Brexit is a problem for recruiters, then contractors are very much part of the solution,” Shaun Critchley, managing director at ADVANCE, said. “The consensus seems to be that the labour market has been ticking along pretty much as normal since the referendum and will continue to do so until we have actually left the EU.”

“It’s at this point with the anticipated restrictions on immigration – that recruiters expect to see a spike in contract and temporary hires,” Critchley said. “With Brexit talks due to start just 11 days after the general election, it’s important that whoever leads the negotiations for the UK listens to the concerns and wishes of the staffing industry. Recruiters are on the front line of the labour market and have a better understanding than most of the challenges we face in terms of skills and hiring.”

The data from ADVANCE also showed that 73% of recruiters wanted whichever party that forms the next government to focus on maintaining tariff-free access to the single market, rather than reducing immigration (27%), during the divorce talks with Brussels. Moreover, 55% said the availability of EU migrant workers would be a concern compared to 45% who expressed no concern.