Demand falls for IT workers

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Demand for permanent and temporary IT workers is starting to slip, according to new data.

A report from the Recruitment and Employment Confederation has shown that demand for full-time IT pros hit 48.0 – a number below 50 means the sector saw no growth from the previous month. In July 2007, the IT sector was growing, with a score of 61.3.

Despite the fall, the sector was still had the third highest demand of the eight listed. Temporary workers had a similar indicator of 48.2, and were ranked fourth in demand.

The report said CNC programmers and “experienced staff” were in short supply.

Overall, across all sectors, staff availability increased – meaning more people were looking for jobs – while salaries for temporary workers eased to a five-year low. For permanent staff, salaries showed marginal signs of increasing.

Kevin Green, chief executive of REC, said: “The Report’s latest figures show a continued decline in permanent placements, which has now spread to the traditionally robust temporary jobs market. This is a clear indication that the credit crunch has started to reach the jobs market.”

He added: “Business confidence is low and as a result, employers are becoming much more cautious in their approach to recruiting. Following years of a candidate-driven jobs market, the balance has shifted. It could be argued that employers now have the upper hand in an increasingly competitive jobs market.”

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