A new job market survey from the Recruitment and Employment Confederation and KPMG has revealed a decline in vacancies for contract IT workers.

The company questioned 400 UK recruitment and employment consultancies, and found less demand for temporary IT staff than last year. The research has been included in the latest UK Labour Market monthly report.

Demand for permanent IT vacancies, however, has remained steady, according to the research. Businesses reported a stronger need for IT and secretarial staff than any other type of professional.

The survey identified a similar trend in the overall job market. The number of permanent job placements has grown at its fastest pace since 2007, but temporary placements have started to slow.

Permanent salaries are at a 12-month high and hourly pay rates for staff in temporary employment rose for the second month running in February. Prior to January temporary pay had fallen for 15 consecutive months.

The report said that candidates are becoming more confident in their outlook, and are subsequently pushing for enhanced pay packages.

However, worries over job security remain, and have actually increased for the 13th consecutive month, the research showed.

Mike Devlin, a director at IT services firm Morse, warned that IT professionals are likely to face more upheavals in the near future.

"The worst is not yet over. The effects of public sector cuts are still to be felt, and could reverberate across the IT industry, while there will doubtless be repercussions from this year's general election," he said.

"The previous downturn will have forced many IT departments to work with the bare minimum of staff they need to operate. Since organisations should now have only the most effective members of their workforce remaining, they can take the opportunity to use more efficient methods of expanding on this core of skilled workers."