As the UK officially enters a recession, the latest
research shows that its effects have spread into the IT recruitment
market.
The UK’s gross domestic product (GDP) shrank 0.6% in the third
quarter of 2008, and 1.5% in the fourth quarter – the biggest fall
since 1980.
The economic gloom took its time to spread beyond financial
services out into the rest of the UK IT sector, but most areas are
now being hit hard.
The bad news
The SSL/Computer Weekly survey shows the average number of
vacancies in the sector fell 24.3% between quarter 3 and quarter 4
of 2008, from 129,672 to 98,173, with a resulting stagnation in
advertised salary growth.
Although financial services and London are leading the decline,
other areas and sectors are now seeing big falls in advertised
vacancies. Financial services advertised 32.1% fewer IT vacancies
in quarter 4 of 2008 than quarter 3. During 2008, IT job vacancies
in London fell 45%.
The survey also shows that recruitment is down by 27.5% in the
north east of England, 22.1% in the south, 14% in Scotland and
Northern Ireland and 21.4% in the west midlands.
George Molyneaux, director of Salary Services Limited which
carries out the research, says the average 24.3% fall was "worse
than that seen in 2001." He adds, "It is quite possible that
recruitment will virtually dry up during the next quarter."
The good news
But it is not all bad news, with recruiters pointing to silver
linings and rays of hope. Matt Smith, director of UK regions at
Harvey Nash, says IT directors and staff have done a "great job"
over the last ten years of improving IT's stature in the
business.
"It really is not all doom and gloom," he says. "In 2001 after
the dot.com bubble burst, IT was the bad guy. It was seen as a cost
to the business, not a strategic advantage. IT staff have done a
great job at raising its profile. It is no longer seen as a
cost."
Michael Bennett, director at Rethink Recruitment, has some words
of comfort for IT contractors. The SSL research shows contract
vacancies have fallen 26.9% between quarters 3 and 4 last year, but
Bennett says this is partly because employers no longer need to
advertise for them.
"The contractor business is pretty strong because companies want
people on short-term contracts. The lack of ads does not surprise
me because you do not need to advertise to find people at the
moment."
Advice for people facing redundancy
- Steve Palmer, head of IT at Hillingdon Council in London, says
staff should look at short-term project work, and make sure they
keep their skills up to date, taking advantage of any available
support.
- Michael Bennet, director at Rethink Recruitment, says staff
must be persistent - register with plenty of agencies, look at the
job boards regularly and contact companies directly. He says other
economies, such as Dubai, are less affected by the recession than
the UK.
- Matt Smith, of recruiters Harvey Nash, advises staff to
"leverage" relationships with recruitment consultants, with peers,
or with people they have already worked for. "Use Linkedin and make
sure your CV is up to date, and do not get disheartened," he said.
"It is about using the network you have and being in the thought
periphery of decision-makers."