IT Jobs Report March – It’s All Going Up
Last month we took a look at the current rise in IT salaries and the way, broadly speaking, it has become a candidate market. Some might say it has always been a candidate market, but we’ve not seen wages climb this high. Ever.
Surrounding the salary increase conversation has been the impact of Russia’s invasion of Ukraine. While there is clearly a huge humanitarian crisis underway, for us in the UK this means further economic impacts.
Oil and gas prices have risen sharply since the invasion. Higher energy prices have already been felt in the steep rise in petrol prices and energy bills (for businesses, as well as households) have gone up too.
Then there are the rises to National Insurance. From 6 April 2022 to 5 April 2023 National Insurance contributions will increase by 1.25%. Which will go towards the NHS, health and social care in the UK.
According to Neil Carberry, Chief Executive of the REC:
”Candidate availability has now been dropping for a year, which shows the scale of the labour shortage the UK faces. Recruiters are filling record numbers of posts, but demand is still rising. Those firms that are meeting their needs are working more collaboratively with their recruiters to get their offer to candidates right. Meanwhile, government can help by working with business to support people back into the labour market and address skills gaps. At a time when firms and workers are hard-pressed by inflation, making sure businesses can invest in wages and training matters. Ramping up National Insurance is not the right way to go.”
So, with recruitment activity slowing ever so slightly, employers have been active in the hiring market throughout last month and into March as well. The IT sector has led the increase in demand for permanent staff which continues to further increase salaries.
This is what we saw within the IT Jobs markt last month:
A sustained increase in hiring activity
Hiring activity continued in February with hiring managers reporting rising workloads and further increases in confidence. Permanent placements increased but not as sharply as in the previous 11 months. And this rate of increase was matched by temp placements filling the void of permanent candidate shortages.
Candidate supply continues to fall quickly
Candidate availability fell pretty sharply last month, the sharpest since November. The lower candidate numbers are because of the tight labour conditions and competitive job offers. But then there could also be the reason being ongoing pandemic-related uncertainty and of course fewer candidates from overseas.
Overall, IT job vacancies expanded at the quickest rate for three months in February and the biggest acceleration since July. So, as IT recruiters we have seen the competition for tech talent become more competitive, again fuelling the increase in starting salary
IT Jobs in Demand