The number of employed IT professionals has risen by less than 1% to 914,000, fuelled by a growth in the number of IT management positions.
Unemployment rates for IT staff are still below the national average, and there has been a drop in the number of redundancies over the past 12 months.
But with the number of advertised jobs continuing to fall, there is no still no firm indication that the worst is over for the jobs market, the latest E-Skills Quarterly Skills Bulletin revealed.
"Advertised vacancies are continuing to drop each quarter. Contract jobs have been in a state of downturn for a number of months. It looks like we have got some way to go," said Peter Hounsome, author of the report.
Despite the downturn, average salaries for permanent IT staff rose by 1% to £36,000, though some fields, particularly in communications and networks, have benefited more than others.
Average contract rates continued to fall, dropping by 4% from the previous quarter to £63,000 per annum.
The report showed that about 25% of the IT workforce are women, although the majority are in lower-end positions. More than 90% of the workforce is white, 6% is Asian or Asian/British. The average age for an IT professional is 37, and the average working week is 40 hours.