IT&T perm jobs down but contracting up brings good news in May

Stan Beer
Monday, 08 June 2009 15:49

IT People - Enterprise

The technology permanent jobs sector continued its decline in May, but a rally in contracting positions indicates there are signs that the worst is over, the decline is slowing, and that IT&T jobs on offer are on the rise, according to a new report.

While overall IT&T job ads declined in May compared to April, jobs ads rose significantly within May between the first and final week.

According to the May 2009 Olivier Job Index, from recruiter Olivier Group, IT&T permanent jobs were down 5.19% in May, slightly more than the overall jobs market, which dropped 4.32%. However, contract and part time jobs have contributed to an increase in overall job ads in May and IT&T was no exception.

Job ads rose during the month, with 16,850 jobs added from the first to the final week of the month. “Could this be a result of the Federal budget? It may be that businesses got a better Budget result than expected,” says Robert Olivier.  

While full time jobs fell 4.4% in the month part time rose 5.3% and temporary and contract positions were up 5.9%. “Employers may be coming back into the market, wanting people, but not yet confident enough to add to their head count,” says Robert Olivier. Traditionally during June budgets are set and recruitment plans put in place, which may lead to a resurgence this month.

Olivier said the rise in the stock market and general improvement in business confidence is likely to do wonders for the IT&T jobs space.

"If your company's share price is tumbling, the CEO is not thinking about the next IT project. We have had a good GDP number, a good retail number and there is a general feeling of confidence."

According to Olivier, there are strong signs that the IT&T jobs space has bottomed and is on the rise.

"If you're coming out of a low, employers will take on temps and contractors before taking on permanents," he said.

"Between week 1 and week 4 in May the number of ads actually picked up and that's the first time anything like that's happened for at least a year."

Olivier told iTWire that IT&T was part of the group of sectors in which there was an overall  increase in job ads during May.

"IT&T had a 4.6% increase between the first and fourth week of May which is a very encouraging sign. It is too early to say it's a trend but it's the first sign of anything turning around."