Contractors working within the IT sector reportedly received a boost in demand during the Olympics, but a leading IT recruitment agency has now revealed that demand for workers in the previously high performing financial services sector is beginning to tail off.
IT recruiters JM Group found that in the second quarter of 2012 the eurozone crisis finally took its toll on investment banks, with contractor hiring levels falling by 20% compared to the same period in 2010. They also found that the IT hiring market is becoming more unstable, due to the fact that there are more bursts of activity, rather than a steady flow of contract availability.
Whilst the outlook for contractors appears difficult, permanent IT positions were said to be up 17% year on year, suggesting some stability and returning confidence within the financial services, with A JM spokesperson adding; “We believe these new hires reflect an improved confidence by the banks that they are finally in a position to ride out whatever the future may hold.”
Despite these concerns for IT contractors, another IT recruiter Volt said, in an interview with ContractorUK, that across Europe temporary billings were at the highest level for 34 years, with growth particularly led by France, Germany and Switzerland. They did acknowledge the issues within the UK market however, with their European operations director Sebastien Cobut agreeing with JM Group that fluctuations could be due to fragile confidence in the overall economy.
He did add that, “demand across Europe should pick up as clients return from the traditional summer break, and companies’ routines are re-established after the euphoria of the London 2012 Olympics.”
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