Following UK based economists Markit’s confirmation of recovery in the IT sector, the Monster Employment Index figures for October confirm that employment opportunities in the sector rose higher than they have over the past eight months. This Index counts the millions of job adverts online across all sectors.
Hugo Sellert, head of economic research at Monster Worldwide, said that it was too early to draw conclusions that hiring trends have completely turned around in the IT sector. He pointed out that in comparison to this time last year, IT vacancies have dropped by 23%. In fact they have dropped since 45% since their highest point in February last year. Mr Sellert confirmed that last month IT vacancies actually bottomed out. Vacancies are increasing at a relatively slow rate and redundancies are continuing.
Sellert stated: “Labour turnover typically falls during economic downturns as employees perceive it more difficult to get another job, and therefore tend to stay in their current position. As signs of optimism return to the economy, more workers consider changing employment, thereby creating a higher need for replacements.”
While other surveys have confirmed a rise in hiring intentions, Sellert suggests that “it could take some time” before this translates to online vacancies. This is coupled with extensive candidate availability due to the number of layoffs which have occurred in recent months. This is backed up by data from TotalJobs.com who report 148,000 applications across 15,000 IT jobs advertised in September. This is not an increase in users of the site, but there has been a decrease of around two-thirds in employment opportunities in the sector over the past twelve months.