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Almost 40,000 jobs will disappear from Britain’s IT services sector by 2010, after which the number of new roles it creates will decline, in real-terms, until 2013. Issuing the grim forecasts, a leading think-tank said the contraction in the IT jobs market would fuel total job losses for business services of 334,000 from 2008 to 2013. Sectors that rely on the investment cycle, discretionary budgets and public sector spending will suffer the most, said the Centre for Economics and Business Research. Its figures show that IT will shrink by 6%, and not recover to its 2008 level of job creation for the next three years. However it will find the bottom by next year, allowing IT’s recovery to be underway by 2011, when it will create 528,000 jobs, before growing by 8% two years later. Though by 2013, the overall jobs market for business services will still be receding, with 8% fewer jobs than last year, said the CEBR, known for its enviable record of accurate forecasts. Jobs in technical areas, related to the architectural and engineering sectors, will also sink to its lowest level in 2013, signalling limited choices for techies hoping to jump from IT services. Despite this, IT will provide 573,000 jobs during the 12-month period, surpassing the 559,000 it created in 2008, alongside a stabilisation in the number of jobs in the nearby R&D field. The IT sector’s recovery, and that of business services more generally, will miss the boost from the public sector it enjoyed in recent years, as state spending will be cut from 2010 onwards. For the year, the IT services sector will create just 522,000 jobs. Ben Read, a managing economist at CEBR, said: “The business services sector, one of UK plc’s leading lights in recent years, will find the operating environment for the next five years to be very different compared with the previous five years. “Steep drops in business investment, the collapse of the property market and construction industry, upcoming cuts in public sector spending as well as continued difficulty for firms to find capital imply difficult times ahead for this sector.” Co-author of the findings Arek Ohanissian added: “The dramatic reversal of fortunes for the business services sector from strong performance to significant losses would have been hard to imagine even at the onset of the financial crisis.” Evidencing his claim, the report shows that more than half of the jobs that the business sector gained during the last five years will be lost over the next five years. Jun 23, 2009 Email this article Printer friendly page Previous Page
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