Home > News > February 2004 > 02-Feb-2004

e-skills UK publishes latest quarterly review of the ICT labour market

e-skills UK has published the latest issue of its e-skills Bulletin, a comprehensive review of employment and market trends for the Information and Communications Technology ICT sectors.

According to the report, the state of the ICT sector remains unsettled, with positive changes in the stock market counterbalanced by a continuing decline in the trade balance for ICT services and reduced private sector spending on IT hardware and software. Businesses appear bullish however and appear positive about future sales and employment prospects.

There appears to be a gradual re-emergence of demand for contract ICT staff and skills shortages remain for those with specialist skills/experience.

Key industry data for Q3.03:

• The UK trade in ICT services fell for the 3rd quarter in a row but remained in surplus at £249m
• Gross private sector hardware/software investment also fell for the 3rd consecutive quarter.
• Surveys show the majority of firms still anticipating growth in business/market opportunities.
• Industry analysts predict limited growth (2-5%) in IT spending during 2004.
• FTSE indices for e-commerce, computer services and Telecoms equipment rose by 29%, 25% and 6% respectively over the third quarter of 2003.
• The number of company closures was down 17% compared to the previous quarter.
• The number of people employed in ICT firms went up by 27,000 to 925,000 over the last quarter.
• The unemployment rate for those normally working in the ICT sector stood at 5.5%.
• Just over a half (55%) of those working in ICT firms were working in ICT occupations.

Employment outlook as at Q3.03:

• The number of people employed in ICT occupations increased by 21,000 over the previous quarter.
• The unemployment rate for those normally working in the ICT jobs stood at 4.8%.
• The number of vacancies for contract ICT staff increased by 4% over the previous quarter.
• Agencies reported a growing market for both permanent, and contract IT staff in particular.
• The number of vacancies for ICT staff at Jobcentre Plus offices increased to 3,500 (Q2.03-Q3.03).
• Contract rates increased by £3 per hour over the previous quarter.
• ICT vacancies were being posted for an average of 1.9 weeks but adverts for permanent staff with ADA skills were staying open for 4 weeks and contract posts for those with IDMS skills for 4.1 weeks (averages).
• The percentage of ICT firms anticipating growth in employment rose above the UK all industry average for the first time since Q4.02.
• Five per cent of firms anticipated difficulties recruiting ICT staff over the following 6 months.

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