REC reported agencies had also experienced a rise in average weekly billings for general temporary and contract workers for a fifth successive month and at the fastest rate since March 2001.
Agencies largely attributed the increase to clients' preferences for flexible workforces in light of continuing economic uncertainty, although a number of agencies linked higher billings to the positive knock on effects of the World Cup and Jubilee.
Despite the increase, agencies' margins on contractors deteriorated for the thirteenth consecutive month in May, slightly down on the previous month but slower than the survey's record pace of decline experienced in February.
Upturn on the horizon? | Demand for temporary workers rose sharply compared with April and at a faster rate than seen in the same period a year earlier, with the exception of the Executive/Professional and IT sectors where demand fell, albeit at its lowest rate for over a year.
General availability of temporary workers improved for the thirteenth successive month in May. However, having increased at a survey record pace last November, the rate of improvement eased for the sixth month running to the slowest since last July. The latest easing in the rate of growth of temporary worker availability was commonly linked by agencies to the marked strengthening of demand seen in recent months.
Contract workers' rates were reported as hitting an eight-month high, however, the rate of increase remained modest and significantly slower than that seen prior to the slowdown of last year. Just under 12 per cent of all recruitment agencies reported that pay rates were higher. This was attributed to skill shortages and a further significant increase in demand for permanent staff.
Demand for IT contractors was up one position at 49.3 per cent compared to last year where it ranked eighth in eight sectors at 37.3 per cent. Only 'Web Designers' were reported to be in shortage.
Permanent staff placements rose for the third successive month in May at the fastest rate of growth since March 2001, attributed by agencies to 'rising business confidence at clients and improved availability of suitable candidates.'
Rising demand and the persistence of certain skill shortages were commonly reported by consultancies to have placed further pressure on wages and salaries in May which rose at the fastest rate for eleven months.
The availability of permanent staff increased for the twelfth successive month in May, although the rate of improvement eased to the slowest since last June, down for the fifth month running from December's survey peak.
Demand for permanent IT workers rose at its fastest rate since April 2001, shifting up one position to settle at 55.8 per cent, compared to 41.9 per cent and a ranking at eighth place this time last year. Two categories of permanent IT workers were listed as being in short supply: 'Software Engineers' and 'Web Designers.'
Brett Walsh, Head of UK Human Capital at Andersen, said: "The labour market showed a further tightening in May, with demand for staff from a wide range of employers picking up significantly during the month. With the pool of available, suitably qualified, staff continuing to diminish, it is natural that wage pressures strengthened again. However, the extent of the increase in demand for staff and associated upward movement in pay rates clearly remains much less marked than seen prior to the downturn of last year, attributable to a positive but cautious attitude of employers to future growth prospects."
Tim Nicholson, Chief Executive of REC, said: "May's Report on Jobs shows growing signs of business confidence as displayed by the continuing increase in demand for permanent staff, although the recovery appears to be sluggish and companies remain cautious with regard to future expansion plans."
According to Jobstats, the average rates for IT contractors are currently: £22 per hour and £37,400 per annum for permanent workers.
The five most popular skills are:
Management 27.4 per cent - £27 per hour, £42,500 per annum
Support 21.4 per cent - £15 per hour, £34,000 per annum
Analyst 17.4 per cent - £25 per hour, £36,900 per annum
Finance 16.9 per cent - £27 per hour, £46,400 per annum
Design 16.8 per hour - £32 per hour, £39,200 per annum
The five most popular locations are:
London 28.1 per cent - £22 per hour, £45,600 per annum
City 6.4 per cent - £26 per hour, £51,300 per annum
Berkshire 5.1 per cent - £30 per hour, £38,500 per annum
Surrey 4.1 per cent - £26 per hour, £38,300 per annum
Hampshire 2.9 per cent - £22 per hour, £35,200 per annum
According to iProfileStats, the top five skills in demand are:
Rank | Skill | Rate | 1 | JAVA | £38.70 | 2 | C++ | £37.78 | 3 | Unix | £38.00 | 4 | MS SQL Server | £36.87 | 5 | MS Visual Basic | £38.40 |
The top five skills by rate are:
Rank | Skill | Rate | 1 | UML | £57.27 | 2 | Java Servlets | £56.23 | 3 | Java Server Pages | £54.10 | 4 | OO Analysis and Design | £51.38 | 5 | MS Project | £51.31 |
The top five skills by salary are:
Rank | Skill | Rate | 1 | MS Project | £45,540 | 2 | OO Analysis and Design | £44,800 | 3 | Java Servlets | £44,444 | 4 | Visual Studio | £44,227 | 5 | JCL | £41,666 |
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Richard Powell, © Shout99.com 2002
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