Contractors remain optimistic and self confident despite the economic gloom

40% of freelance contractors expect to earn more this year than in 2008 despite the credit crunch, and nearly half feel reasonably secure in their present contracts. These are the surprising results of an annual survey among 480 contractors in the IT, teaching, medical, security, engineering, social care and administration fields, carried out by JSA, the Watford-based accountancy based service solutions provider, serving the freelance and contractor marketplace.

Even among those who think they might lose their current contract, 51.8% are confident of replacing it and 40.7% think their earnings will rise by at least 5%, with 7.3% confident that their earnings will rise by more than 15%, compared with last year.

ìThe results of this survey show that contractors are generally an optimistic and self-confident breedî says JSA Sales and Marketing Director Rick Flood. ìDespite the tide of gloom that is encircling the world at the moment, freelancers tend to have a level-headed resilience and positive attitude that is a basic requirement for survival when you are literally out there on your own, with none of the support mechanisms of full time employment.î

Despite this optimism, 60% of respondents think the market for their particular skills will shrink in 2009 and, compared with previous years, when the JSA survey showed the majority of contractors hoping to work less hours, 55.5% actually want to work more hours than previously.

Of those who say they want to work less hours in 2009, reasons given are evenly split between those who want to spend more time with their family and others who want to pursue further their hobbies and interests. Just over 10% say that they are currently too stressed.

Despite the relatively sanguine approach to their future, 65.4% say that they hope to find more challenging work in 2009. However, only 26.7% think they are likely to return to full time PAYE employment this year, and on a scale of 1(being very unhappy) to 10 (being extremely happy), 65.7% of respondents place themselves at 7 or above, with 6% being extremely happy.

There is also some good news for the Government in the results of the JSA survey. 58.8% of respondents say that they think that the recent lifting of UK Government threats to impose further tax legislation, demonstrates a more positive attitude to contract workers than in the past. Furthermore, less than half (44.3%) think that the recent credit crunch has had any serious effect on their general financial situation.

Although the age-range of those surveyed covers everyone over 20 years old, 63.7% of respondents are over 40. 53.7% of respondents work under an umbrella company, with only 8.8% working from home.

For those working from home, the problem of loneliness does not seem to be a major issue, with only 15.2% saying that they feel isolated. The majority of contractors say they donít mind working at weekends (53.7%) and nearly all (94.8%) are clearly confident in themselves and think they are good decision makers.

The questionnaire also set out to find out if there is a ëtypicalí contractor. In fact the figures show that contractors are fairly typical of the UK population as whole. Of the 480 respondents, 63.1% are married, 16.5% are in a partnership, 5.0% are divorced and 16.5% are single. 56.4% have children with 49.8% having two children.

Contractors clearly need to have a diversion from their job as 82.6% say that they have at least one major outside interest or hobby. Of these, 47.5% are sports-related, 22.3% involve travel and 18.2% are connected with arts and crafts.

Four out of five respondents say they prefer to holiday in the UK or Europe rather than further afield, and nearly half (46.6%) favour resort-based holidays.

Rick Flood adds that the results of the survey provide further evidence that contracting is a work and lifestyle choice for many people. ìThe Government should take heed of the fact that the contracting community provides an important and dynamic sector of the workforce which is well equipped to stay calm in the present economic storm and help to put the UK back on the road to prosperity.î