Freelancers come to the aid of the public sector

Freelancers come to the aid of the public sector

Companies in the public sector are following in the footsteps of private sector businesses by opting to subcontract more work out to freelancers, research has revealed.

The first year of the coalition government in the UK will arguably be best remembered for the widespread cuts that have been introduced on a local and national level, and the budget-slashing has, in turn, triggered a rethink regarding how the labour market operates.

Full-time job losses are now being offset by a massive surge in freelancers successfully finding work, with digital projects - like programming jobs and  graphic design jobs – that are proving to be the most sought after by employers.

So sought after, in fact, that People Per Hour (PPH), who specialise in helping to connect small firms with trained professionals online, are reporting a 315 per cent rise in digital jobs being posted on their website over the past 12 months.  

1. Revealing the findings in the study, PPH founder and CEO Xenios Thrasyvoulou points to the fact that turning to freelancers is a more cost-effective measure that was adopted some time ago in the private sector.     

“It’s clear from our figures that the public sector has learnt a lot from the private sector about the benefits of using freelancers,” said Thrasyvoulou.

“When the recession hit, the private sector was quick to respond to the new economic reality by shedding permanent staff and engaging freelancers instead.

“Thousands of UK businesses quickly realized this was the best way to stay lean and remain solvent in the face of testing economic conditions.

“The public sector had no such imperative and continued employing and retaining full-time staff. However, since the government started slashing budgets, the public sector has been forced to find a more cost effective and efficient approach to human resources.”

PPH - Europe’s largest online business marketplace – is reporting that invoicing on its website for digital projects in the public sector is seven times higher for the first quarter of 2011 than in the corresponding timeframe last year.

The PPH website, launched in 2008, allows companies to recruit freelancers and for freelancers to pitch for work. It’s a two-way process that has proved hugely successful: a ratings system enables clear and concise feedback for potential employers, and over 40,000 businesses having used PPH in the past three years.

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