IT contractors appear to have remained relatively unscathed by the economic downturn, according to the latest figures from contractor services provider Giant Group.

The firm's latest survey found that the number of long-term unemployed contractors is half what it was five years ago, and that just 7.5 per cent of IT contractors were out of work for 90 days or more, compared to 13 per cent at the end of 2003.

"Despite the current problems facing IT contractors, they are still faring far better than they were following the dot-com crash," said Matthew Brown, managing director of Giant Group.

"IT departments were pared to the bone in 2001/2002, and have been cautious about vanity projects ever since. This means that IT departments are much leaner going into the current downturn, and IT directors have far less fat to trim."

IT contractors are also changing their preferences, the survey found, with more preferring longer term roles to higher paid ones than they did five years ago. At the end of 2003, 56 per cent of IT contractors preferred a long-term contract to higher hourly pay rates, but that figure has risen to 62 per cent.

And as IT contractor confidence in finding work in the financial services sector dwindles, perceived employment opportunities in the public sector appear to have rocketed.

Five years ago, 13 per cent of respondents thought that they would be able to find more opportunities in the public sector in the following year. That figure has now jumped to 30 per cent.