IT Contract Rates Soar
We are seeing IT contract rates soar as the number of contracts available is greater than the number of available contractors.
This is the opposite of what is happening in the general population.
Currently wages are rising in the general population at 1.7% a year.
However, as inflation is 2.9% a year, realy wages are falling.
The fall in the pound due to Brexit is causing this inflation making imported goods dearer.
The falling pound should make the economy grow more as our goods are now cheaper to foreigners.
However, the UK economy grew at just 0.2% in the last quarter – the slowest of the major economies.
Better News on Rates for IT Contractors
However, it is better news for IT contractors.
We are seeing IT contract rates soar by around 6% a year.
According to ITJobsWatch the average rates for IT Developers are up by more than 6% to £438 a day.
Rates for Analysts are up by just under 6% to $450 a day on average.
Rates for Project Managers are up by just under 6% to £450 a day on average.
Contract Architect Rates are up by almost 5% on average to £550 a day.
Rate Rises Above National Average
Those rises of around 6% are way above the national average of 1.7%.
Those rates are also easily outstripping inflation which is at 2.9%.
While the general population is getting poorer, IT Contractors are getting richer.
It took the IT contractor market a long time to recover from the credit crunch.
Rates were drifting, or standing still, for years.
There were more contractors available than here were IT contracts.
Laws of Supply and Demand
According to the economic laws of Supply an Demand, if supply is greater than demand, the price of a commodity falls.
It took us a while to get back to equilibrium in the market.
However, it now looks as if there are more IT contracts available than there are IT Contractors available to fill them.
This is causing quite a squeeze in the market and sending rates higher.
At last contractors have something to celebrate.
Even if they are about to pay more tax as Theresa May and Philip Hammond kook set to re-impose the National Insurance increase and to implement the looming Matthew Taylor report on Self Employment, which is likely to make it more difficult to class yourself as self employed for tax purposes, at least IT Contractors can rejoice in soaring contract rates.
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