Long-term IT joblessness is down

Most recruitment growth expected in the financial services sector

The proportion of IT contractors expecting their earnings to rise in the next year has increased from 61 to 65 per cent

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.