Successive industry reports from APSCo, REC, KPMG and Morgan McKinley point to continuing strong demand for contractors in 2014, with IT recruitment showing “impressive growth”, tech firms experiencing the strongest business growth since the financial crisis, and strong demand for HR, IT and finance contractors in the City.
Regulatory needs driving City demand for contractors
The latest edition of the London Employment Monitor shows that the demand for both permanent and contract specialists in IT, finance and HR shows no sign of cooling, with one-third more vacancies registered than a year ago, echoing similar findings published by APSCo earlier this month.
The Morgan McKinley update for July 2014 shows a 10% increase in jobs advertised on the previous month, and an average 20% increase in remuneration for people starting new roles in July.
Here are the specific skill areas which are in most demand:
- HR – Reward and In-House specialists. Contract HR specialists with both direct and vendor recruitment experience are in particular demand.
- Finance – Product Control and Regulatory Reporting specialists are being sought – both permanent and contract – driven by ongoing regulatory demands.
- IT – Regulatory and compliance issues are still driving demand for City IT contractors, particularly with experience of mobile / digital technology, data management, analytics and IT security.
IT sector recruitment showing “impressive growth”
Data from recruitment industry organisation, APSCo, also shows that the demand for professional permanent and contract staff has risen significantly over the past year – by 20% for permanent staff, and 8% for contractors.
Although engineering and finance / accounting vacancies have been growing for some time, APSCo says that “this month is the first time that the IT sector has demonstrated such impressive growth” (18% year-on-year).
“Strongest growth spell” for tech firms since the credit crunch
The APSCo data reflects the findings of the July 2014 KPMG/Markit Tech Monitor, which found that the capital expenditure intentions of the UK’s technology sector are at the highest point since 2009, “amid the strongest growth spell since onset of the financial crisis.”
61% of respondents in the sector have reported a “solid upturn” in business for the coming year, compared to a mere 6% expecting a fall in fortunes.
Job seekers more likely to seek new opportunities
The July edition of the KPMG / REC ‘Report on Jobs’ says that recruiters reported another rise in the number of permanent and contract staff placements – with the rate of growth reaching its highest level for 2014.
The report states that “for the first time in months we are witnessing churn in the labour market.”
This means that jobseekers – both permanent and contractors – are feeling more confident as the economic outlook improves, and are therefore more likely to seek new work opportunities.