The UK labour market will experience steady progression in 2011, according to the head of one umbrella company.

Rob Crossland, managing director at Parasol wrote on his Contracting Matters blog that although 2010 was a tough year for contractors, there are reasons to be optimistic moving forward in 2011.

He predicts that steady progression is the way forward this year, as opposed to 2010's "boom and bust".

"I therefore look forward to 2011 with sensible optimism and confidence that Contracting will remain a crucial part of the UK economy," he concluded.

Meanwhile John Brazier, managing director of PCG, has said that although financial adversity, public sector cuts and redundancies will mean many people are approaching this year with caution, contractors are better placed than others to deal with the changes.

He said that the nature of contracting meant that those who chose the freelancing lifestyle are particularly able to adapt to the changing needs of clients.