Guide to the latest IT Contractor Rates

The latest CWJobs quarterly update on the IT jobs market suggests that there has been a significant rise in IT contract vacancies during the first quarter of 2011.

The report, published by CWJobs and JobsAdWatch, makes pleasing reading for almost all - with a 5.7% rise in demand for permanent IT professionals, to sit alongside a 11.1% increase in the number of IT contract vacancies advertised.

Contract rates have continued to rise for five quarters in a row; the report shows a 2.1% rise in median rates compared to the same period in 2010.

As in previous quarters, this report reveals a split in fortunes between North and South - perhaps due to the fact that over 80% of all contract vacancies being advertised are based in the South of the country.

London and the Midlands saw a rise in demand for contractors of over 10% during the last quarter, compared to drops in demand in the North and Scotland.

Software houses and financial institutions continue to consume the vast amount of contractor resources - making up 46.4% and 35.8% of demand during the first quarter of 2011. Unsurprisingly, there were nearly 30% fewer public sector contract vacancies advertised in Q1.

As most seasoned contractors will know, freelance staff are often the first to be let go when the UK enters a recession, and also the first to benefit when more prosperous times return. Is this the start of a sustained recovery for contracting, or just another false dawn?