Following David Cameron’s ringing endorsement last week; a recent report has further highlighted the strength of the UK’s contracting sector.

The PCG has published new data showing how much UK businesses rely on the skills of contractors. 60% of the country’s business leaders said they would experience difficulties operating their business if it wasn’t for contractors. And 73% of companies that do use contractors expect to see an increase in their job opportunities in the coming 12 months.

58% of organisations still source their contractors through recruitment agencies, 42% rely on referrals and 32% use personal networking.

The average daily rate for a contractor is between £401 and £500 and 60% of all contractors command a daily rate of up to £500.

Last week, the Prime Minister hailed the contribution of the UK’s 1.4 million freelancers in a letter to the PCG to celebrate National Freelancers Day. Cameron said he admired people who left regular salaried employment to go it alone. Freelancers make a massive contribution to the UK economy and without them the country would be a much poorer place.

Despite this praise from the government, the REC would still like to see the Cabinet Office giving greater recognition to temporary workers.

The comment came after Francis Maud, the Cabinet secretary, outlined new proposals to streamline the procurement process. Maud did admit that there had been a 30% decrease in public sector spending on agency workers recently.

Tom Hadley from the REC said that the Confederation welcomed the easing of burdens surrounding procurement but was worried that once again temporary workers were being used as an easy target when it comes to cutting spending.

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Small businesses, contractors, freelancers and entrepreneurs are feeling optimistic about the end of the economic downturn. Many are now keen to see a return to more profitable times despite the planned increases in tax, national insurance and regulation over the coming years.

PeoplePerHour.com’s recent survey of UK entrepreneurs revealed that only 25% of respondents felt that the latest recession has had that much of an impact on them with more than 30% saying they could benefit from the experience.

These findings are backed up by a new study conducted by Investec Specialist Private Bank and the Entrepeneurs’ Organization. Their results show that nearly 90% of small businesses expect to increase their turnover in 2010.

Other survey findings show that almost 2/3 of respondents feel that the economy will improve this year and nearly 75% believe the economic climate represents an opportunity for them. Close to half (46%) are investing in research and development.

Entrepreneurialism is doing particularly well at the moment, as many people go in search of the niches, gaps and opportunities made available since the recession.

To further encourage this, PeoplePerHour.com has launched its own Virtual Business of the Year Awards to recognise SMEs and entrepreneurs who have embraced web 2.0, virtual working and the opportunities they represent.

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Image: Mission 172: “This morning, draw small, happy faces on all your fingers, and a big smiley face on your tummy.” by peyri

As social networking sites become more and more popular, the lines between work and social activities are in danger of becoming somewhat blurred according to Felix Wetzel, the group marketing director at Jobsite.

He warned that as these networks become more popular more employers will use them when looking for personal information about potential job candidates.

He explained that while some firms, including umbrella companies, will be able to differentiate between a candidate’s work and social life, others may be influenced by what they see online.

“I think the future will see more employers using online sources to ‘screen’ potential recruits [and] I think it will always be used alongside other methods such as CVs, telephone interviews, assessment days and references,” he said.

In fact a recent survey showed that 53% of employers already use social networking sites to research job candidates and a further 12% plan to do so within the near future.

A whopping 43% of the more than 450 employers surveyed reported that they found content on social networking sites that caused them not to hire the candidate. Poor communication skills, content about drinking and drugs, and lying about qualifications are obvious no-gos as far as employers as concerned.

However, if leveraged properly, social media sites can be an extremely useful tool for the jobseeker. A professional profile, backed up with good references and proof of qualifications goes a long way in the eyes of potential employers.

Even after you’ve secured a position be ever mindful of the information you post. 28 percent of employers reported that they have fired an employee for information found on his/her social networking profile.

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