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October 8, 2015updated 21 Oct 2016 5:13pm

IT and computing vacancy growth falls

News: UK demand slows but pay rises an average of 3.4% in 2015

By Sam

IT and computing vacancy growth fell back in September when compared with last year, market watcher Markit said in its latest report.

Ranked at number five for growth in September 2014 it fell to number 6 this year.

Markit uses indices which ranks changes in demand.

A figure of 50 ranks no change. In September 2014 IT had an indicator of activity of 65.7. This year it dropped to 58.6.

It was ranked for growth behind Nursing and Medical care; Accounting/Financial; Hotel & Catering, Engineering and Secretarial.

Growth of demand for short-term IT staff was at a 27-month low in September. Although still pointing to a robust rate of expansion, the respective index (58.6) was slightly below the UK average (58.9). IT was in sixth place out of nine in the temp job vacancies ‘league table’ during September.

"We continue to see strong demand for skilled IT staff, but meeting this demand is challenging. The pool of available skilled labour shrank yet further in September, pushing up pay, which jumped by 3.4% year on year. While welcomed by workers, this uplift could put downward pressure on firms’ overall profitability, unless improved labour productivity compensates businesses for the higher wages on offer", says Heath Jackson, ?Partner in KPMG’s CIO Advisory team.

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The overall job market showed slower rise in vacancies. "Although overall demand for staff continued to increase in September, the rate of growth eased to a 26-month low. Slower rates of expansion were signalled for both permanent and temporary vacancies," the report said.

It said salary growth was cooling with Starting salaries for people placed in permanent roles continued to increase in September.

Although easing to a 20-month low, the rate of growth remained strong. Temporary/contract staff pay growth meanwhile eased to an 18-month low.

Slowest rise in permanent placements for two-and-a-half years

Recruitment consultants indicated a further increase in the number of people placed in permanent roles during September. However, the rate of expansion eased to a modest pace that was the weakest since March 2013. Panellists again reported that a lack of suitable candidates had restricted placements during the latest survey period.

The strongest rise in permanent placements was recorded by Midlands-based consultancies, while the only decline was signalled by those based in London.

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