Technology news and Jobs arrow Technology people arrow Contractors lead revival in IT recruitment
Contractors lead revival in IT recruitment E-mail
by Peter Dinham   
Wednesday, 22 July 2009
Strengthening demand for contractors has helped bring some renewed vigour back to the IT recruitment market in Australia although salaries and employment conditions remain stagnant as businesses work their way through a tough economy.

As the IT jobs market shows early signs of firming, there’s now greater demand for contractors in several states, with the rise in demand most evident in New South Wales, Western Australia and South Australia, but more constrained in Victoria, Queensland and the ACT.

According to the latest quarterly IT & T salary index from recruitment firm, Peoplebank, while IT employment levels were flat for the three months to the end of June, there was a late burst of contractor opportunities hitting the market towards the end of June which lifted the overall contractor demand.

Commenting on the market trend, Peoplebank’s COO, Peter Acheson said there was a “noticeable firming in the number of contractors being hired in June 2009 – a late improvement that saw contractor levels for the period lift slightly by around 5% over the prior quarter,” and “this trend has continued into July.”

The Peoplebank survey, released today, shows that overall IT employment levels remained lower than the high levels recorded in the first half of 2008 and demand was generally flat for much of the quarter.

According to Peoplebank, the types of contractors being sought are those that are typically sought at the beginning of projects, which the recruitment firm says indicates that there may be the flow-on demand for project execution skills in the medium term.

Acheson says the rise is consistent with Peoplebank’s experience that the contract sector is the “first to respond to strengthened economic conditions, with a corresponding strengthening in the permanent market over the medium term.”

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