Demand for finance and accounting contractors has increased dramatically over the past year and is poised for further growth, a new report suggests.

The Association of Professional Staffing Companies (APSCo) found that UK recruitment firms have 9% more finance and accounting contract vacancies on their books than this time last year.

This buoyancy is in contrast to relatively modest year-on-year growth of 1% in contract vacancies across all sectors.

Analysing the survey results, APSCo chief executive Ann Swain attributed the boom in contractor demand within financial services to new regulations and job cuts.

She said: “Contract vacancies within finance and accounting remain strong as organisations bring on board compliance specialists on a project basis to help manage legislation.

“Members are telling us that the new UKGAAP financial reporting standard, which came into effect in January this year, is currently creating unprecedented demand for accountants specialising in derivatives.”

She added: “Widely publicised UK job cuts within financial services, such as those announced by HSBC and Barclays in recent weeks, look set to create further demand in the area as contractors are brought on board to cover gaps left by the loss of permanent positions.”

Neil Armitage, operations director at Umbrella.co.uk, believes APSCO’s findings will encourage more finance and accounting professionals to embrace contracting.

He said: “The financial services industry, in common with the economy in general, is undergoing a structural shift when it comes to individuals’ working arrangements and career paths.  

“Many ambitious professionals are making a positive decision to free themselves from the shackles of traditional permanent employment and try their hand at contracting and freelancing instead.

“This trend is likely to continue, as those still working on a permanent basis are made aware of the benefits of contracting by friends and former colleagues who have already made the leap.”