Direct employment to rise 20% by 2010

One in five subcontractors is expected to switch to direct employment between 2007-2010, according to CITB-ConstructionSkills.

The 20% swing is being used by the training board as the basis for its short-term assumptions on levy income and grants policy. A swing of just 3% is forecast for this year. This is expected to be followed by further swings of 5% in 2008 and 10% in 2009.

The move back towards direct employment is seen as the likely outcome of initiatives by the Inland Revenue to clarify the employment status of many so-called self-employed workers, together with the impact of the new CIS tax scheme that was introduced in April.