IT contractor demand in November 2025 largely saw off Budget jitters

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REC shows IT contractor demand slightly dipped in November 2025, but the budget didn't derail it nor detract from one technology recruiter's 'busier than ever' December.

Demand for IT contractors in November 2025 still didn't grow but the rate of decline largely held steady, positioning it near the cusp of growth.

According to the REC's Report on Jobs, the temporary IT/Computing index shows demand at 46.0 in November, compared with 46.2 in October.

Obtained by ContractorUK, the full index by the Recruitment & Employment Confederation (REC) uses a score of 50.0 (and above) to denote monthly growth.

'The underlying trend of potential remains'

A score of 46.0 means that despite remaining in 'the red,' IT contracting's negligible 0.2 index-point dip in November signals that 'the underlying trend of potential remains.'

REC's CEO Neil Carberry yesterday gave this description of the UK labour market as a whole in November 2025, based on the confederation's member agencies' activity overall.

But 'the potential' he spoke of appears to more than extend to IT contractors, as the slowdown in their demand not wildly accelerating occurred in a Budget month.

Fiscal statements usually make employers risk-averse and nervous, prompting a pause in recruitment as they 'wait and see' what the chancellor announces.

'Resilient contract market'

A separate, not IT-specific report into hiring in November — the month Budget 2025 was delivered — further indicates "that the contract market…demonstrate[s] resilience."

The Association of Professional Staffing Companies (APSCo) substantiated its claim by saying that although new contract opportunities have shrunk by 10% since October, they rose by 14% compared to November 2024.

In a statement sent yesterday to ContractorUK, APSCo added: "Contract placements followed a similar pattern, with only a minimal month-on-month decline in November but a notable 27% increase year-on-year."

'Employers balancing tech investments against the need to expand'

Lisa Fernihough, head of advisory at KMPG, sounds more cautious about hiring, now that the dust is starting to settle on the chancellor's budget briefcase.

"There will be relief at the absence of major tax hikes; however, that alone is unlikely to be enough to see a marked change in how firms are planning," she said in Report on Jobs.

"For now, with many businesses still facing challenges, it is likely many will maintain a cautious stance, balancing recent tech investments against the need to expand their workforce."

'Hints at sustained demand for IT talent'

Ben Quinn, head of technology recruitment at Leap29, last night implied technology fared better in the November 26th budget than contractors themselves.

"Investment [promised by the chancellor] in digital infrastructure and public services hints at sustained demand for IT talent, particularly in cloud, cybersecurity, and software development roles," Mr Quinn told ContractorUK.

"And companies may increasingly turn to recruitment agencies to secure top-tier candidates, as competition for skilled tech professionals does remain fierce.

"At the same time, rising wages for lower-paid workers and support for households could stabilise consumer confidence, indirectly supporting tech businesses and start-ups."

'IT contractors not getting the interviews that they deserve'

Bowers Partnership, which sources IT contractors for investment management companies, also characterised the freelance tech jobs market in November as "competitive."

"[So] patience is key," the firm's Natalie Bowers advised last week in a post, addressing candidates who report 'not getting the interviews that they deserve.'

"Finding the perfect role takes time, especially in a competitive market. Tailor your CV [too], [by] highlighting your skills and experiences that best match each role."

'Tech staff employers looking for an enthusiastic, can-do attitude'

Bowers added on a thread to some dejected IT contractors: "[And] stay positive. Employers are looking for enthusiasm and a 'can-do' attitude.

"[Also] remember, persistence pays off. Don't let a tough market dampen your spirits. Keep pushing forward, and you'll find the right fit soon enough."

A post last month by a jobless programmer director suggests that reminders to keep the faith might be reaching those on the bench a bit late, as well-intentioned as they are.

'Thousands of UK techies trying to stay afloat'

"Thousands of highly-skilled UK tech workers — people with mortgages, families, decades of experience — are quietly falling out of the system," wrote the programme director, Steven Peel.

"Many aren't even counted in official unemployment data because they're living off savings, borrowing, or selling their belongings just to stay afloat."

'More techies joining the sea of green Open To Work banners'

Blaming offshore outsourcing by six UK organisations, Peel added: "Every day more and more UK tech professionals join the sea of green 'Open to Work' banners."

According to the REC, November 2025 saw 12 technology skills determined as "in short supply," with seven of those 12 scarce on a permanent basis too.

The seven are: Technology, IT, Cyber Security, IT Infrastructure, Software, Software Development, and Software Engineering.

'Busier than ever December 2025'

The REC's recruiters filling contract IT roles also reported shortages of Automation Testers, LLM Engineers, Senior IT Engineers, Senior Technical Staff and Technical Managers.

"People say recruitment slows down in December," reflected Kieron Scully of tech jobs agency Wave Recruitment.

"I couldn't disagree more. Our clients are busier than ever — and keen to wrap up hiring before Christmas…[with these] three live AI roles".

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Written by Simon Moore

Simon Moore is one of the UK’s most consistently published freelance journalists on freelancing, self-employment and contractor issues, such as IR35, the Loan Charge and late payment. Trained in News & Features writing by NCTJ-approved journalism tutors, Simon worked in the newsrooms of local, consumer and national press titles, before setting up his own editorial services company, Moore News Ltd.
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