The latest REC/IHS Markit’s Report on Jobs revealed some very promising news for contractors, particularly for those in the IT and computing sector. Research revealed that the slight softening of demand for contractors in June was an anomaly, as a surge in demand was spotted once again in July.
Demand for IT contractors
In the past month, demand for IT contractors was indexed at 61.5, reading above the 59.7 indices in June and this data was only marginally behind the peak in demand seen in May at 61.8. The Report on Jobs presents it’s finding in an index, where a reading of 50 indicates no change from the previous month, while readings above 50 signal stronger demand. What this indicates is that the rise in demand grew significantly in July for IT contractors, evading the slight dip that was seen in June.
Job vacancies magnify and temp billings grow
For contractors in the public and private sector demand for staff accelerated and the number of job vacancies increased at the fastest rate recorded in eight months. However, the private sector was reported to have a significantly sharper growth in demand than the public sector.
Nonetheless, July data revealed a further steep increase in overall billings of contract staff at 61.9. This surge was the highest it has been for the past 12 months.
Pay rates rise markedly
The on-going dip in candidate availability and the ever-increasing number of job vacancies and demand for staff has led to an even sharper increase in pay rates. Contractor pay rates were in fact detailed to have risen markedly in July, climbing at a rate that was very close to reaching April’s two-year high. This trend of inflation has extended to an impressive five-and-a-half years.
IT skills in demand
The increasing number of job vacancies was reflected in the list of IT skills still in demand from employers. Almost all skills in demand now, have been in demand for 3 months. The IT skills most needed from temporary contractors are:
- Cyber Security
- IT Security
- Software Development
- General Technology
REC’s Head of Policy, Sophie Wingfield commented that “many businesses” have been “positively revising their hiring plans” throughout the summer, which is good news for temporary workers. What’s more, for those “feeling the pinch” following the rise in interest rates, she suggested: “a new job is one way people can ease the burden on their finances.” With data showing temp billings are on the rise, and demand for IT skills is on the up too, this is a viable option for IT contractors looking to earn a higher income.
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