Growth in demand for permanent staff

But economic factors could stifle growth

IT recruitment levels will increase during 2006, but could slow towards the end of the year if economic confidence drops, according to research.

Some 61 per cent of IT recruiters predict an increased demand for permanent staff as a result of rising technology investment, growth of transformational programmes and a stronger financial performance, according to the annual recruitment survey.

‘At the moment, companies remain confident enough to invest in long-term IT solutions,’ said Adam Fletcher, Computer People’s managing director.

But this could be affected by challenges to UK economic performance later in the year if economic growth indicators such as a stagnant housing market and weak high-street sales, continue to have an impact on business performance.

‘Although poor retail sales are yet to make a significant impact on recruitment, the longer that consumer confidence and spending remains low the more jittery the market will become,’ said Fletcher.

The survey, which questioned 500 IT professionals, also found that salaries within the industry will be 26 to 28 per cent higher than the UK average of £22,411. And IT staff can expect salary increases of five to 10 per cent above inflation.

The research also suggests that recruitment levels will be higher in the South East and North West of England, because of higher call centre investment in these regions and a nationwide shortage of technical architects, security specialists and professionals with Oracle expertise.