The latest findings from the iProfile Skills Survey (Quarter 3 2004), produced by iProfileStats and commissioned by the Association of Technology Staffing companies, reveals that IT contract rates have seen an increase of 5% since the start of the year.
After a significant decline in hourly contract rates from Q3 2002 to Q3 2003, when contract rates saw a 10% decrease in value and flattened out at £36, the last 6 months have shown noticeable signs of improvement.
Since Q1 2004 the median hourly contract rate has risen by 5% to £38 per hour.
The permanent market has been more stagnant and has retained a median annual salary of £33,000 per annum since Q3 2003.
Alex Charles, Director of iProfileStats, the company that produces the iProfile Skills Survey, commented: "The results of the iProfile Index, which shows an increase in contract rates, is consistent with the views of many of the UK's leading IT recruitment companies. It would also appear that the recovery in contract rates is being sector lead by the finance, government, engineering, energy and manufacturing sectors."
Our members have seen a steady increase in demand for both permanent and contract IT staff....
Ann Swain - Chief Executive ATSco
Ann Swain, Chief Executive of the Association of Technology Staffing Companies (ATSCo), commented: "Our members have seen a steady increase in the demand for both permanent and contract IT staff over the last six months. As a result the supply of good candidates has decreased and skill shortages are being reported in a number of areas. I believe 2005 will see the market strengthen further as demand for IT professionals continues to increase. This will mean that companies will be under increased pressure to raise pay rates and staff retention will once again become a key issue."
The percentage of IT professionals who are actually out of work is also continuing to decrease. Since the start of the year (Q1 2004) the percentage of respondents reporting that they are not working has decreased from 16% to 10%. This is in sharp contrast to Q1 2003 when just over one quarter of respondents (26%) reported they were out of work.
Source: onrec.com