IT contractor index hits seven-month high

An index that measures demand for IT contractors shows its highest numerical reading since March.

The seven-month high chimes with the index compilers’ belief that “despite ongoing uncertainty” over Brexit, the “jobs market is thriving again in most areas”.

The Recruitment & Employment Confederation also said that new opportunities -- permanent and contract across nine industries including IT -- are, “back to levels not seen since April.”

The IT contractor market is also mimicking activity last seen at the end of this year’s first quarter, as demand then (in March) was 56.4, compared with 56.3 currently (in October).

Sough-after skills have followed suit, given that the REC’s once long list of ‘scarce’ IT contractors which shrank to four in March now cites just two IT specialisms as in short supply on a temporary basis -- digital and development.

But the government still needs to “urgently” outline a strategy to address ‘employability skills’ within the education system, says REC’s chief executive Kevin Green.

Sounding aware that new policies could be packaged in time for Autumn Statement 2016, Mr Green also said immigration policy must in future “reflect immediate labour market needs.”

“Imposing new restrictions on people coming from abroad to fill vacancies will impact businesses’ ability to meet demand”, he said.

Similar concerns about immigration were voiced yesterday by the Institute of Directors, which applauded Theresa May on a visit to India, but noted her refusal to liberalise the UK visa system to allow more Indian workers to enter the UK.  

“The prime minister must recognise that labour mobility and visas are key to deepening trade for a services-based economy like the UK,” the institute said.  “Reforming the [UK’s] net migration target… would be very well-received in India.”

Making her way to Delhi, Mrs May reportedly said: “The figures show that we issue more work visas to India than I think US, Australia and China put together. Nine out of 10 visa applications from India are already accepted. We have, I believe, a good system.”