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More IT Contractors 'on the bench', but joblessness remains low

Published on Apr 4, 2008 | | Contract Rate Checker

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New research suggests that the number of IT Contractors 'on the bench' has begun to rise as the 'credit crunch' begins to hit home, but contractor unemployment remains very low.

The percentage of contractors out of work for three months or more has reached 5.5% this month, according to Giant Group, from a 2-year low of 4.4% at the end of last year.

Giant Group MD, Matthew Brown, commented:

"The post-9/11 downturn saw IT jobs cut across all areas in the City. While we are seeing a rise in joblessness among IT contractors at the moment, most financial organisations have managed their contractor resource much more efficiently since the last downturn, so IT departments have far less fat to trim than in 2001-02."

"Unlike the dot-com boom there is no sense that the economy is overstaffed with IT workers. They are working pretty much at capacity.

"In some areas demand for IT skills is actually rising in the City. Risk management and compliance are huge growth areas right now. If anything the credit crisis and the Société Générale scandal will accelerate this process, rather than lead to curbs on spending."