The latest Report on Jobs has been published by the Recruitment and Employment Confederation and it shows that there has been a continued drop in demand for IT contractors for the third month in a row. This appears to be a stand alone issue in the IT sector since temporary workers across all other sectors have been enjoying a surge in demand.

The REC’s figures show that the billings for techies fell to their lowest level this year during the month of May. The REC’s index showed demand for IT contractors stood at 58.5 back in March but dropped to 57.1 in April before sliding down to 56.4 in May. In fact, the highest demand for IT contractor this year was back in January when the index stood at 58.7.

Bernard Brown, head of business services at KPMG, attributed the drop in demand to lesser opportunities for IT contractors within the public sector. Speaking to Contractor UK, he stated: “This doesn’t come as a surprise since the new government has now begun to spell out where the axe will fall. Many public sector employers will have imposed embargoes on recruitment at least until we get more details of further cuts in the emergency budget on June 22nd.”

The report also stated that there is demand for permanent It staff with IT security skills and enterprise software skills whereas the only gap in the market for temporary workers is in web development.

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