Empowering the Freelance Economy

How inflation can create opportunities for freelancers

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  • A Totaljobs study reveals that higher inflation and the subsequent cost of living is expected to have the biggest impact on the labour market in 2022, according to 62% of businesses. This is higher than candidate shortages (45%), a high number of Covid cases (44%) and Covid-19 restrictions (44%).
  • With the first quarter of 2022 well underway, skills shortages continue to impact over a third of businesses (36%), while just under a fifth of employers (17%) will find it challenging to offer competitive salaries in today’s market. That means there’s room for salary negotiation.

A fifth of businesses in the UK plan to ramp up their recruitment in the first quarter of 2022. Meanwhile, thousands of candidates see this job market has swung in their favour, according to the Totaljobs Hiring Trends Index leading to a fifth of people planning to look for a new job before the end of March. For many workers, this shift in dynamics is a prompt to take the leap to change careers and negotiate higher pay.

That could provide freelancers and fixed-term contractors with more project and client contract opportunities. This shift in the recruitment space also means that freelancers have a higher likelihood to enter new sectors as recruiters and hiring companies consider the importance of transferable skills.

As the candidate-led market continues to evolve, the research reveals that 42% of UK workers want to get a higher salary in their job within the first half of 2022. A growing trend since the start of the pandemic has been the rise of career change and this looks set to continue, with 71% of job seekers open to working in a different industry.

Industries reporting increased recruitment in Q4 2021PERCENTAGE OF FIRMS WHICH INCREASED RECRUITMENT BETWEEN APR-JUN 2021
 
Medical & health services45%
Transport & distribution43%
Real Estate*44%
Legal43%
Media/ marketing/ advertising/ PR & sales42%
IT & telecoms41%
Finance & accounting40%
Construction39%
Manufacturing36%
Hospitality & leisure33%
Retail29%
Education28%
*For these sectors there were less than 50 HR Decision Makers surveyed.
Source: TotalJobs

Jon Wilson, CEO at Totaljobs said that despite the disruption that Omicron absences are causing for some employers, the company’s research shows that UK businesses expect higher inflation and the subsequent rising cost of living to have the biggest impact on the labour market in 2022.

“The record-breaking salaries that have already emerged in some sectors are a key indicator, with almost a fifth of businesses seeing the need to offer competitive pay as a challenge as we start the new year,” said Wilson.

🤔Are you ready to increase your rates in line with inflation? If not, why?


Related articles:

Why now is a good time for freelancers to raise rates

Disgruntled Freelancers: Employers Have You On Their Radar

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