The reduction in long term unemployment amongst IT contractors has been attributed to increased business investment across the IT sector. Data shows that investment in IT grew by 9% during the last quarter of 2009. This information comes courtesy of a new study conducted by giant group.

Figures taken from giant group’s database show a drop of one third in the number of IT contractors who were unemployed for three months or more during the first quarter of 2010. This equates to a reading of 6.8% of IT contractors experiencing ‘long term joblessness’ in comparison to 10.1% just six months ago.

Managing director of giant, Matthew Brown, stated: “Contractors are often the first to be let go in a recession, but they are usually the first back in the door as the economy recovers. IT directors are still wary about increasing headcounts, so contractors offer a relatively low-risk way of increasing capacity without incurring additional…[overheads], as demand recovers.”

Of course, contractors are also benefiting from the current economic climate where many employers continue to favour temporary workers as opposed to employing permanent staff. This has also resulted in increased opportunities for contractors in the financial services sector. Of the contractors questioned by giant, 26% stated their belief that the majority of their work would come from the finance sector.

Mr Brown concluded: “The financial services industry is traditionally one of the heaviest users of IT skills, so with banks now beginning to increase investment in IT, contractors should benefit enormously. The wave of mergers in the sector precipitated by the credit crunch and the resultant need to integrate IT systems is a major factor behind the resurgence in demand for IT contractors in the financial services sector.”

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