23rd September 2010

Surprise drop in demand for IT contractors

There has been an unexpected drop in demand for contractors in the IT sector, recent figures have revealed.

According to a study carried out by pre-employment screening firm Powerchex, the number of available positions for such workers in the financial services sector fell by 47 per cent in August.

The figures also indicated that overall recruitment in the IT sector fell by around ten per cent during the same period.

Powerchex said a dip in recruitment is relatively common, but noted that the extent of the drop had “wrong-footed” many analysts in the industry.

Alexandra Kelly, managing director of Powerchex, said: "The current market turbulence is causing havoc for IT contractors looking to work in the financial services sector, with the number of available placement opportunities fluctuating substantially every month."

She added that employment opportunities for IT contractors within the financial services peaked in June, but have fallen by some 62 per cent in the interim.

According to the recent Report on Jobs from the Recruitment and Employment Confederation, general IT workers, CAD designers and business analysts are the contractors currently in highest demand.