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IT contractors still confident about 2008, despite financial market uncertainty  

According to new research carried out by Giant, IT contractors seem to be positive about the contracting market this year, despite the so-called 'credit crunch' and the recent financial market uncertainty.

The study shows that fewer IT contractors are spending three months or more without work compared to 12 months ago. Long-term joblessness amongst contractors fell from 4.7% at the end of 2006 to 4.4% at the close of 2007, its lowest level for nearly two years. UK unemployment is currently 5.3%.

The figures also reveal that the clear majority of contractors are increasing their preference for higher hourly pay over long-term contracts, suggesting that concerns over job security are waning rather than increasing. 54% of contractors would prefer higher pay to a longer contract, compared to 49% this time last year.

Inevitably, recent financial uncertainty has had an impact on contractor confidence - 72% of those polled expected their rates to rise in 2008, compared to a slightly higher 76% who were polled in 2007.

Matthew Brown, MD of Giant Group, commented:

"Contractors are sounding a note of caution but we have to bear in mind that 2007 was a year of very strong, above trend growth. Nearly three-quarters of contractors are still predicting their earnings to grow, which in the five years we have been collecting data, is better than any year bar 2007."


Published on Jan 28, 2008


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