IT jobs market 'best for five years'

The IT job market is the healthiest for more than five years, according to a leading recruitment firm, with some companies handing out pay rises of up to 25 per cent in order to retain staff.

In a survey of 500 IT bosses from across the country, Computer People found that 56 per cent expected to recruit additional staff this year, double the figure for 2003.

Jane Binner, associate director at Computer People, said: "We've noticed a pick-up since the beginning of the year. However you measure it, things are looking buoyant.

"Requests for information about our services are up, registered vacancies are up, and weekly, monthly and quarterly placements are up. Prospects for IT job seekers are simply the best they have been since the late 1990s."

Demand for all skills areas is growing, but Binner singled out infrastructure development and project management as hot areas.

By sector, banking and finance is showing the strongest recovery. "The City is reaching peak levels of demand. In some cases, it's even beginning to outstrip supply," said Binner.

"We've seen evidence of companies giving pay rises of up to 25 per cent to prevent individuals moving, which is a clear sign that employers know it will be costly and difficult to replace them."

The survey found that London and the North East remain the hot spots for IT recruitment.

Most salaries have remained fairly static over the past year, with average increases of between zero and six per cent depending on skills area.

Graduate recruitment is also on the up. Binner indicated that a number of Computer People's clients had started hiring again after several years of stagnation.

"I wouldn't say the numbers are highly significant yet, but they're certainly evident," she said.

Graduates starting work in IT can expect to earn up to £24,000 in London, £3,000 higher than the average graduate wage. Those working in the North and Midlands have the potential to start on up to £20,000.

Seperately, a survey into 2004 European MBA pay levels by analyst QS Research found that, despite an overall nine per cent rise in starting salaries for MBAs, pay for those starting work in the IT sector was down by a third, from £38,300 to £25,600.