IT contractor demand in Scotland increased sharply during October 2012, taking the lead in the demand league tables and outperforming the UK as a whole.
Conversely, the availability of contractors to fulfil assignments fell sharply during the month, particularly in engineering. This suggests that demand may well outstrip supply if the contractor market continues to grow and availability continues to fall.
This suggests that contractors who are finding their local market conditions tough and who are mobile may find Scotland a source of lucrative IT contracts.
According to the latest Bank of Scotland Report on Jobs, the Scottish labour market performed well overall during October, with both permanent and temporary placements increasing overall, and contractor demand rising at its fastest since July 2012.
“Following the low point reached in July, the Scottish labour market is steadily improving in spite of the economic slowdown in the summer months,” explains Donald MacRae, Chief Economist at Bank of Scotland.
Six of the eight contracting and temp industry sectors increased demand during the month, with engineering contractors experiencing a strong expansion in demand, which was at a four-month high during October. Recruiters highlighted engineers as being in particularly short supply during the month.
Demand for accounts and financial contractors fell sharply and was at the bottom of the demand league table, mirroring the general deterioration of the financial sector in the wider UK labour market.
Regionally, contractor demand rose fastest in Glasgow, alongside a fall in contractor availability, which also hit the video games centre of Dundee. Pay rates also increased fastest in Glasgow in response to increased demand and reduced availability.
Although the Scottish contracting market shows sharp monthly swings in performance, it is consistently outperforming the rest of the UK, particularly in IT and computing.
As MacRae concludes, the Scottish labour market is “showing a rising number of people in both permanent and temporary jobs and an increase in the number of vacancies”.