IT contractor appointments dip

Wednesday 10 January 2018

Temporary IT workers are often able to command good rates and have high levels of job satisfaction. However, demand can occasionally drop off, and it seems like this is exactly what happened last month, according to figures from IHS and the Recruitment and Employment Confederation (REC).

The two organisations released their monthly Report on Jobs on January 9th, and one of the statistics that was uncovered was that IT contractor demand was scored at 59.3. This indicates a good amount of growth, as anything above 50 means that demand was higher than the previous month.

However, this is not entirely good news, as it is one of the lowest scores of 2017. The last time the Report on Jobs revealed IT contractor demand as low as this was February. This indicates a potential slowdown in the number of temporary jobs in this field.

Of course, this isn't necessarily as bad as it seems. It is still growth, after all, but there is also the seasonal factor. Temporary contractor demand tends to fall across all industries at the end of each year, partly due to the holiday slowdown and companies wanting to sort their budgets out in time for January.

It looks like demand might well pick up for IT contractors soon. Kevin Green, REC's chief executive, pointed out that "early in the New Year, people often think about changing jobs", which leads to a loss of talent from many fields. As experienced IT freelancers move jobs and are replaced by new temporary workers, demand will grow for those with the necessary skills.

Mr Green added that companies in January will need to "retain existing capabilities and find the new hires they need as competition for people intensifies", and that "bosses should consider going to wider talent pools". Both of these indicate that businesses can benefit from bringing in temporary workers.

However, that is not to say that IT contractors cannot benefit from looking at their finances. If you are worried about the dip in demand for temporary staff in this industry, you might benefit from working with an accountant to make sure your finances are in order and you are not losing money from easily avoided expenses.

Brookson offer specialist services for a range of sectors, and are known as accountants for IT contractors. If you are interested in this service, why not book a consultation and see if there is any money you could be saving?

By Victoria McDonnell

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