Inflation and contracting

[Smartie]

This isn't just contracting, it's the whole UK economy. Incomes stagnating since 2008 due to our terrible productivity.
We still get paid a lot more than most people.
https://www.bbc.co.uk/news/business-64970708

[SussexSeagull]

The financial advantage to contracting has eroded over the last 15-20 years and the premium for not having things like paid holiday and sickness has dwindled.

It will vary from person to person but if you can't find contract work then obviously a permanent job is the better option, if you can find one.

[b0redom]

TBH I'm stuck on an inside IR35 contract now. I'd consider going perm, but not for a significant pay cut. There would have to be a pretty big upside too, like interesting company to work for, chance to upsklil into something etc.

I'm still keeping one eye on the market. The government dept I work for have started grumbling about 3 days/week in the office, which would suck, but given that I'm in London and the 'office' is in Newcastle......

[Eirikur]

Compared to what? At least we generally get paid more than permies.

Not sure about that, I'm having a permie salary which is nett maybe slightly below the annual contract rate, but it does have a paid pension, vacation days and other permie "benefits", but I just won't last any longer than 6 months in a permie role, am in one now and desperate to leave before my probation time is up and my notice will go up from 1 week to 2 months.

[Protagoras]

Most rates at the moment are actually lower than what it was in 2009. Is contracting still worth it?

It's probably less about 'worth it' than necessity. Faced with no alternative income stream, maybe too old for permiedom, people have little option and this is to the buyers' advantage in the 'market'.

So the options are 'suck it up' or do something else. Or somewhere else.

Except for those with sought-after stills operating on an 'outside' basis, there can be little incentive for anyone young to enter the contract market. Oldies seem mostly to have left the market. Those in between are faced with stark choices.

[b0redom]

Compared to what? At least we generally get paid more than permies.

[Eirikur]

I have an offer on the table for the same rate as my first contract in 2009 but the offer is inside IR35, my 2009 contract was outside. Inflation in the UK since 2009 is 71%. Most rates at the moment are actually lower than what it was in 2009. Is contracting still worth it?