Talent Monitor: update forecast rate development professionals 2022
In December 2021, Intelligence Group and HeadFirst Group took a major, unique step by forecasting the rate trends of temporary professionals for 2022. At the same time, we announced an interim update on the predictions made for the middle of this year. Now is the time to present these insights.
Accelerated rate hike averaging 10.3% for self-employed and secondees in 2022
Flexible workers, more specifically, self-employed workers and professionals employed by secondment agencies, have become more expensive by an average of 4.7% in the first six months of 2022. Over the whole of this year, 10.3% rate increase is expected, with inflation and scarcity being the driving forces. This is according to data and the rate forecasting model from labor market data specialist Intelligence Group and HR tech service provider HeadFirst Group. This exceeds the average agreed wage increase for permanent staff, which remained stuck at 3.1% for the first half of 2022. Read the entire press release here
Inflation drives hourly rate up further
For this update, we analyzed the realized hourly rates of professionals - self-employed and professionals employed by secondment agencies - in the first half of 2022. Using this data, we were able to map out for 46 professional groups, within which the proportion of professionals is large, how the rate increase developed compared to the previously issued forecast for all of 2022. Motivated in part by an exceptionally scarce labor market and rocketing inflation, there are three main conclusions:
- The rate increase of professionals - practical and highly educated - averages 4.7% in the first six months of 2022.
- The hourly rate is expected to increase by an average of 10.3% by the end of the year. Still over 3% more (!) than already predicted in December 2021.
- The average agreed wage increase for permanent staff for the first half of 2022 is 3.1%. This leaves salaries behind current inflation, inflation expectations and average rate increases for professionals.
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