Sole traders told 'tread carefully' with 'troubled' firms

Date: 22nd July 2010

Businesses that look likely to suffer further blows as a result of the economic downturn should be treated with caution by sole traders, it has been suggested.

A leading recruitment agency has said that firms that have not yet begun a stable road to recovery could pose problems for contractors in the long run.

However, Richard Herring, European staffing services director at Volt, did have some good news for sole traders, telling ContractorUK that a number of businesses in London are set to embark on projects that had been put on hold during the recession.

According to the expert, London-based firms are increasingly "taking their finger off the pause button".

He claimed that despite this, pay levels for contractors could take time to return to levels seen two years ago.

"Clients are more realistic, acknowledging the need to maintain 'business as usual' while using contractors because they are taking their time bringing on the right person permanently," he told the news provider.

"[So] pay rates may take some time to reach pre-recessionary levels, but they are better than they were six to 12 months ago."

Posted by Emma Clarke