Online recruiter Computer People has released its latest monthly IT jobs market monitor, which makes encouraging reading for permies, Umbrella Company Employees and other professional IT contractors.

Despite the fact that July is generally a quiet month for recruitment in the IT skills market, this year has been an exception to the general trend. Demand for IT staff – both permanent and contractor – was markedly higher in June 2013 than June 2012 and actually grew again in July.

The soaring demand for talent is also pushing up pay rates for permanent and IT contracting staff alike; moreover, the growth in pay rates and vacancies occurred across the UK without being confined to specific regions, which is a development indicative of a growing market.

The IT contracting market appears to have really taken off in July after several months of steady growth, the report reveals. There was an overall month-on-month leap in vacancies of 11.4%, which translates into an impressive year-on-year rise of 22.4%.

Demand for business intelligence roles climbed by 50% on June’s total with pay rates expanding by 7.4%, while demand for application analysts doubled and pay rose by 6.7%. Contractors in director roles enjoyed a massive pay hike of 28%, although the report cautions that the figures on which this is based are very small.

The figures represent a 10% increase in demand and 5.5% overall pay increase compared to June 2012. Managerial and software testing roles saw lower demand this year, which the report attributes chiefly to the artificial spike in demand generated last year by the Olympic Games.

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