Long-term IT joblessness is down

Computing staff, Computing, Friday 21 May 2010 at 17:17:00

Most recruitment growth expected in the financial services sector

Long-term joblessness among IT contractors has slumped dramatically over the
past six months as business investment in IT has increased, according to a
report from contractor services provider
Giant
Group.

According to the report, the number of IT contractors out of work for three
months or more fell 33 per cent in the last quarter.

Six months ago, one in 10 IT contractors had been out of work for this length
of time compared with 6.8 per cent currently.

Official government data shows that investment in IT ? both hardware and
software ? rose 9.2 per cent in the fourth quarter of 2009.

Matthew Brown, managing director of Giant, said: ?Contractors are often the
first to be let go in a recession, but they are usually the first back in the
door as the economy recovers.

?IT directors are still wary about increasing headcounts, so contractors
offer a relatively low-risk way of increasing capacity without incurring
additional employment-related costs as demand recovers,? he added.

The proportion of IT contractors expecting their earnings to rise in the next
year has also increased from 61 to 65 per cent over the past six months.

The research also reveals growing confidence among IT contractors of job
opportunities in the financial services sector, with 25 per cent of contractors
expecting financial services companies to create the most jobs over the next
year, compared with 22 per cent of respondents six months ago.

The financial services industry has therefore surpassed the public sector in
contractors? expectations as the sector most likely to create jobs over the next
year as concerns over public sector spending cuts grow.

Full story at http://www.computing.co.uk/computing/news/2263511/long-term-joblessness