Demand for IT jobs grows again as recession fades

Vacancies are on the rise for permanent and temporary IT workers

Demand for IT workers in permanent positions rose by almost 12.4 per cent in July compared with the same month last year, as the industry pulled further away from the recession.

The figures, part of the monthly Report on Jobs from the Recruitment and Employment Confederation (REC) and KPMG, showed that demand for full-time staff had risen from 46.3 to 58.7 points over the 12-month period.

The points are calculated from the percentages of respondents reporting an improvement, no change or a decline. The indices vary between 0 and 100, and a reading of 50 signals no change on the previous month.

Meanwhile, temporary roles increased from 46.2 in July 2009 to 56.5 in July 2010, a rise of 9.7 points, underlining continued confidence in the IT sector and the return of budgets.

Jeff Brooks, chairman of the REC technology group, said that he is encouraged by the figures, adding that, although public sector cuts will have an impact on IT recruitment, they may not be as bad as some fear.

"We are pleased to see employment levels rising, but there is a slight tapering off as public sector cuts begin. However, these cuts probably started about 12 months ago, so it won't be a huge shock to the industry," he said.

"Overall, we expect to see continued growth in the medium term for permanent and temporary jobs in the IT sector, rather than any double-dip recession affecting the market."

Brooks did warn that IT staff coming out of the public sector could struggle to adapt to the ways of the private markets.

"Developers will find their skills in demand in all sectors and will find it easy to move around, but business analysts, or senior project managers who have only ever worked on public sector projects, could find industries like financial challenging," he said.

The findings match those of a report published earlier this week by CWJobs.co.uk and JobsAdWatch.co.uk which found that demand for IT workers has risen by eight per cent in the past three months, the fourth rise in as many quarters and the fastest growth rate for three years.