Wales on the up, but N. Ireland poor for contractors

Northern Ireland is financially the worst place in the UK for umbrella contractors and freelancers to apply their skills according to a recent report from.

According to contractor specialists, Parasol Group, the current average hourly rate for umbrella contractors and freelancers in Northern Ireland is £13.53 per hour which equates to an annual gross salary of £23,847. However, this compares favourably with the average gross annual salary for Northern Ireland which, according to official statistics, stands at £21,949.

Despite a year on year fall in rates for umbrella contractors and freelancers (£32.39 in 2012 compared to £33.12 in 2011), the UK's flexible workforce continues to earn more than the regional average as outlined in the table below:

• Region - (Avg. salary) - Avg. rate for contractor
  
• Greater London - (£33,135) - £65,811
  
• South East - (£27,495) - £62,992
  
• South West - (£24,299) - £61,106
  
• Wales - (£22,701) £57,334
  
• Scotland - (£24,346) - £53,298
  
• West Midlands - (£22,842) - £51,711
  
• North East - (£23,265) - £51,606
  
• North West - (£21,996) - £49,191
  
• East Midlands - (£24,722) - £45,366
  
• Northern Ireland - (£21,949) - £23,847
  
• National - (£25,568) - £57,087

Derek Kelly, Managing Director of the Parasol Group, said: "I think the regional variations in the average annual salary of umbrella company freelancers and contractors gives us a really interesting snapshot of the UK economy as a whole.

"It comes as no surprise that London and the South East lead the way when it comes to gross salaries however Welsh contractors and freelancers do seem to have more earning power than the regional average for permanent workers suggests. Obviously there is demand for certain skills in Wales which is driving the market and this could be a precursor to growth in the Welsh economy. Central Government has made investment in Wales in recent years, with more to come in the shape of six enterprise zones, and this will only mean more opportunities for Welsh contractors and freelancers.

"What this report does show is the continued valuable contribution the UK's flexible workforce is making both in terms of the skills and the experience they offer UK PLC, as well as the tax revenue generated by their earning power."