ICT job market horror run tipped to end in 6 months

Clarius Skills Index shows signs of recovery but confidence still to be cemented

The ICT job market's horror run won't dissipate for another six months despite early signs of a recovery, according to the most recent Clarius Skills Index.

In the July to September quarter the overall index hit a moderate 98.2 seasonally adjusted, meaning labour supply exceeded labour demand. (Chefs are the only occupation with a skills index of greater than 100.)

The result is a 0.6 per cent drop on the previous quarter and was accompanied by a fall in vacant skilled positions of 10,900.

While the index is now at its lowest point since 2002 when it hit 97.6 and companies remain cautious, Candle ICT chief executive, David Stewart said there are "are encouraging signs the businesses are taking early but cautious steps towards recruitment".

"Candle ICT is seeing demand for revenue generating roles such as Business Development Managers and IT Sales Executives, which is typically the case when businesses see a recovery on the horizon. Once these people begin to secure sales, increased demand for more specialist skills to undertake the work the Sales Executives have signed up normally follows," he said in the report.

"We are also witnessing bursts of demand in some industry sectors, like Financial Services and Telecommunications. This type of volatility is again typical of the early beginnings of an economic recovery in the ICT sector.

"Businesses are prepared to spend money for recruitment, particularly temporary staff, but will take a wait and see approach before committing further resources given ongoing uncertainty surrounding the economy."

The news follows on from the latest results for the Olivier Job index, which found that while the Australian job market rose again in September, the IT sector is still playing catch-up.

According to the Olivier Index overall job ads were up another 3.58 per cent in September, on the back of August’s 2.43 per cent rise, reflecting a sense of optimism in the market. But the IT sector only experienced a slight rise of 0.8 per cent.

However, several of Australia’s top IT service providers signalled their intentions to significantly increase local headcount to Computerworld last week.

Logica, UXC, Fujitsu, Capgemini and CSC have all told Computerworld that positions are up for grabs.

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Tags Clarius Skills Indexolivier job indexIT recruitment

More about Candle IT & T RecruitmentCSC AustraliaFujitsuLogicaOlivier

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