Contractor rate plunge bottoms out

A contractor service provider has said that contractor rates plunged throughout 2008, but levelled out towards the year end.

The Sanzar Partnership, which processes pay for contractors across a range of industries, has revealed research showing that average rates for new contracts declined steeply during 2008 and that in Q4 the average rate remained low.

Chris Connor, Chief Operating Officer at the Sanzar Partnership, said that rates for new contracts were down 21 per cent on a year ago.

Mr Connor said: "Contractor rates have been consistently squeezed as the recession takes a hold and all indications for 2009 are that rates will remain low. It's far too early for contractors to think about holidays in the sun and hiking their rates back up."

The figures are based on real payments to contractors.