ICT for Recovery

Demand for IT staff grows

Contract IT staff demand also grew, according to the report by KPMG and the Recruitment and Employment Confederation, based on a survey of 400 UK recruitment consultants.

Kevin Green, chief executive of the Recruitment & Employment Confederation, said: 'The labour market is out of intensive care but it is still in a fragile state. While employers are hiring more now than at any other time in the last year, the recovery is tentative and must not be put at risk by taxes or regulatory changes.'

The report uses a figure to represent demand, where anything below 50 indicates a drop on the previous month. In January, the figure for permanent IT staff was 67.7. This was the sixth consecutive month of growth, and was greater than the previous month's figure of 65.7. It was also a significant year on year improvement compared with January 2009, when the figure was 32.2.

The demand for contract IT staff has also increased since December, reaching 58.7. The IT sector had the second strongest growth, after the demand for temporary secretarial and clerical staff.

But although the report suggested that businesses in the private sector are now on the "long road" to recovery, this is not the case for the public sector. "The starting gun for the public sector recession has only just been fired and its impact on the jobs market will be felt over the next 12 to 18 months,' warned Bernard Brown, partner and head of business services at KPMG. "The UK jobs market is continuing its journey back to health. Placements of permanent and temporary jobs have been rising again in January although at a slower pace than a month before, a reminder that the road to recovery will be bumpy.'