State of the Market

[Dorkeaux]

So - I have been offered a contract. 50% the rate of my previous (inside and admittedly well paid) gig but outside IR35 and 100% remote.

[TheDude]

Surely some contractors who have spent an extended time on the bench will apply?

Some on this forum have been benched for 3 years now.

I for one was pretty snobby about my day rate.

I have have just taken a day rate that I would have dismissed immediately one year ago when I was in a nice contract at a bank in London. Why - because I was earning £x a day, worked for high profile firms and that was how I viewed my status and my market value.

In retrospect I had ignored the warning signs were staring me in the face. Over the course of the two year engagement approaches from recruiters had dwindled from maybe a couple a day to a couple a month and that day rates were only heading in one direction. I thought I would be fine because I had moved between banks easily and usually with only a half hour chat as the interview process.

Once the contract ended my market worth was no longer £x a day. No one was engaging contractors at those rates and indeed hiring at banks had pretty much dried up completely.

Worse still there was a glut of developers on the market who had performed similar roles many of whom were younger, some of whom were probably more able and all of us were chasing a much smaller number of roles.

I am extremely grateful to be earning again. My ego has taken a bit of a kicking but at least I will not be burning through my savings and I hopefully have a bit of time to work out how to position myself for the new future we are all facing.

[NotAllThere]

Conspiracy theory nonsense post has been removed. Also subsequent replies. Blame the OP.

[Bluenose]

The gig I have been offered is 100% remote though so even better.

Congrats. Let us know when you complete your first full day.

[TheDude]

Congrats. Let us know when you complete your first full day.

We all know a lot can go wrong before then!

[ShandyDrinker]

I for one was pretty snobby about my day rate.

I have have just taken a day rate that I would have dismissed immediately one year ago when I was in a nice contract at a bank in London. Why - because I was earning £x a day, worked for high profile firms and that was how I viewed my status and my market value.

In retrospect I had ignored the warning signs were staring me in the face. Over the course of the two year engagement approaches from recruiters had dwindled from maybe a couple a day to a couple a month and that day rates were only heading in one direction. I thought I would be fine because I had moved between banks easily and usually with only a half hour chat as the interview process.

Once the contract ended my market worth was no longer £x a day. No one was engaging contractors at those rates and indeed hiring at banks had pretty much dried up completely.

Worse still there was a glut of developers on the market who had performed similar roles many of whom were younger, some of whom were probably more able and all of us were chasing a much smaller number of roles.

I am extremely grateful to be earning again. My ego has taken a bit of a kicking but at least I will not be burning through my savings and I hopefully have a bit of time to work out how to position myself for the new future we are all facing.

Although no malice intended, I think that are plenty of contractors out there arrogant enough to believe it's because they're so superior. For many of us, it's a case of being in the right place at the right time and at a rate end clients are willing to bear. Many contractors don't seem to give enough weight to there being more than a fair dollop of good luck.

I've recently finished a contract on my best rate ever. Based on what I've been hearing from ex-contractor colleagues, it's not uncommon for rates to have halved. That's just the market. I fully expect that, as a result of both AI and the government shafting the contracting community yet again, making British based contractors uncompetitive with their international counterparts, it's going to be a tough few years.

However, despite the social media grifters saying that they are creating new $1 billion dollar valuation companies overnight with their armies of agentic AI programmers, I do remain somewhat sceptical.

As contractors, we really to have to roll with the punches and take what we can to keep the roof over our heads and prevent capital destruction of any war chest. At my age (very early 50s), I don't have enough yet to be able to retire and probably need to work for the next decade.

In this market, leaving any ego at the door is essential.

[Fraidycat]

In previous downturns (2008 and 2002) there was headline news about contractor rate cuts from the Banks. 20%+, sometimes double rate cuts, 20% followed by 20% again.

But this time have not heard any of that.

Any ideas why?

Is is that the contract sector has been so decimated and the number of contractors and rates are were so low to begin with, it hasn't been worth the bother?

[oliverson]

In previous downturns (2008 and 2002) there was headline news about contractor rate cuts from the Banks. 20%+, sometimes double rate cuts, 20% followed by 20% again.

But this time have not heard any of that.

Any ideas why?

Is is that the contract sector has been so decimated and the number of contractors and rates are were so low to begin with, it hasn't been worth the bother?

Probably because all the UK contractors have been replaced by offshore resources? Plenty cheapness.

[SchumiStars]

I for one was pretty snobby about my day rate.

I have have just taken a day rate that I would have dismissed immediately one year ago when I was in a nice contract at a bank in London. Why - because I was earning £x a day, worked for high profile firms and that was how I viewed my status and my market value.

In retrospect I had ignored the warning signs were staring me in the face. Over the course of the two year engagement approaches from recruiters had dwindled from maybe a couple a day to a couple a month and that day rates were only heading in one direction. I thought I would be fine because I had moved between banks easily and usually with only a half hour chat as the interview process.

Once the contract ended my market worth was no longer £x a day. No one was engaging contractors at those rates and indeed hiring at banks had pretty much dried up completely.

Worse still there was a glut of developers on the market who had performed similar roles many of whom were younger, some of whom were probably more able and all of us were chasing a much smaller number of roles.

I am extremely grateful to be earning again. My ego has taken a bit of a kicking but at least I will not be burning through my savings and I hopefully have a bit of time to work out how to position myself for the new future we are all facing.

Good post.

Although, I have never been too fused about the day rate, as long as it was over £Xpd outside, I never worried much tbh.

I always aimed for consistency. I had always believed that £350pd outside, 6mths was better than £450pf outside, 3mths. Perhaps, it's just the way I work, but any down periods will see the extra being eaten up quick. Even if meant the agency, would earn more, it would mean the agency would be more keen to get renewals for me. YMMV.

We are all getting older quicker, so the new young guns, fresh to contracting will be hunting us down. We are aging grandfather clocks in a crypto world. Arrogance, experience, old tech will not cut it against young, hungry and speed and low rates.

Nothing wrong with re-evaluating ourselves in changing times.

[SussexSeagull]

I for one was pretty snobby about my day rate.

I have have just taken a day rate that I would have dismissed immediately one year ago when I was in a nice contract at a bank in London. Why - because I was earning £x a day, worked for high profile firms and that was how I viewed my status and my market value.

In retrospect I had ignored the warning signs were staring me in the face. Over the course of the two year engagement approaches from recruiters had dwindled from maybe a couple a day to a couple a month and that day rates were only heading in one direction. I thought I would be fine because I had moved between banks easily and usually with only a half hour chat as the interview process.

Once the contract ended my market worth was no longer £x a day. No one was engaging contractors at those rates and indeed hiring at banks had pretty much dried up completely.

Worse still there was a glut of developers on the market who had performed similar roles many of whom were younger, some of whom were probably more able and all of us were chasing a much smaller number of roles.

I am extremely grateful to be earning again. My ego has taken a bit of a kicking but at least I will not be burning through my savings and I hopefully have a bit of time to work out how to position myself for the new future we are all facing.

My longest time out up until now was immediately after my longest ever contract (which went on for about two and a half years). It was local, as in I could walk to work local, and fairly well paid so I cruised and not noticed the work was extremely mundane and did nothing for my future prospects. Curiously it was my one and only SC contract, which did me no good at all.

You are back in the game and have time to think about your future while, presumably, your outgoings are being covered, and hopefully a bit more. A lot of people, me included, are drifting out of the industry due to lack of opportunities so you have done better than most.