IT contractor demand returns to summer high

The UK’s market for temporary IT contracts returned in October to its most recent high, following three straight months of the growth rate dwindling.

So rather than growth in demand for IT contractors slowing – as it did in July, August and September, it reverted last month to the strongest figure it achieved over the summer (in June).

In particular, IT contractor demand now stands at 60.3, compared with 58.6 in September, shows October’s Report on Jobs by the Recruitment & Employment Confederation (REC).

Taken with REC’s other figures (July 59.2; August 58.7 and Sep 58.6), the data suggest that the recent relaxation in growth of IT contractor demand has ended, as hirers enter the final quarter.

This slowdown in growth (any figure over 50 indicates stronger demand than a month ago) has coincided with ‘take it or leave’ rate cuts for some IT contractors, such as those at Bank of America.

Moreover compared with last month, when a second bank – HSBC- cut IT contractors’ pay, the number of IT specialisms likely to offer premiums has shrunk or not increased.

Specifically, there are still just five skills that are scarce for IT contracts - Digital Marketing, Java, Oracle, PHP, Testers, and only six (down from eight) that are scarce for IT positions.

Nonetheless, businesses want to see talent shortages addressed in the Autumn Statement 2015, said REC’s chief executive Kevin Green, pointing to the construction sector where the skills deficit is acute.