IT and computing contractors who were ‘spooked’ by October figures showing a surprise fall in vacancies can take comfort that this was probably a statistical blip. According to the latest KPMG/Recruitment and Employment Confederation (REC) Report on Jobs, November’s figures reverse that fall.
However, that positive news should not hide the fact that vacancy growth was higher a year ago. In November 2009, IT contractors were the second-most sought after temporary workers; but for the same period this year, IT and computing ranked fourth. Blue collar workers were in most demand, followed by engineering/construction workers at number two, and accounting and finance workers at number three.
Temporary and permanent worker billings rose during November, which may be significant, according to KPMG Partner and Head of Business Services Bernard Brown. “This is very encouraging news, with the data suggesting that a turning point for the UK jobs market may have been reached as employers across the board are recruiting more people,” he explains. “Confidence among employers is clearly growing as many firms now look to growth in 2011.”
Such growth may lead to skills shortages, warns REC Chief Executive Kevin Green, but these are likely to produce more contract opportunities in core contracting disciplines. Green says REC members have already identified engineers and IT specialists being in short supply.
Alongside increasing demand, contractor pay rates have risen marginally for the tenth consecutive month. Pay in the manufacturing sector grew fastest, with rates above the national average, whereas construction experienced falling rates.
If private sector job creation maintains its current levels of growth, fears of mass unemployment may not be realised, according to Brown. He explains: “Whilst government cuts are yet to bite hard in the public sector, the private sector shows resilience in these turbulent times. It remains to be seen whether this trend will continue...”