Signs of recovery in South East as demand for IT skills begins to bottom out, with smallest fall for several quarters
North West suffers most, with IT job vacancies dropping by 45%
The City of London and West End records smallest fall in IT vacancies
IT jobs fall by over 30% in North East, Wales and Midlands
West and Wales now represents 10% of UK IT Skills Economy
The number of IT job vacancies* in the UK fell by 28% for the period April ñ June 2002 compared to January ñ March 2002, the lowest fall for several successive quarters, according to the UK Quarterly Regional IT Skills Index from SSP (Salary Survey Publications Ltd) and CWJobs, the online IT recruitment specialists.
The report suggests that the rate of decline in the UK IT jobs market is slowing down, with signs of recovery in the South East, which has been hardest hit by the poor performance of the IT sector in the last two years. The rate of decline in this region was below the national average, with IT job vacancies falling by 26% in April ñ June 2002.
Greater London saw IT vacancies drop by 19.5% in Q2 compared to Q1, the smallest drop for several quarters, suggesting the market for IT skills is beginning to bottom-out in this region (Figure One). Demand fell by 16% in the City of London and the West End, the most encouraging performance for over a year, an indication that demand for IT skills is recovering from the impact of September 11th.
In the North West, IT vacancies in Q2 showed the worst performance for several quarters, with a drop of 45%. The North East, the Midlands and the West & Wales all saw quarterly falls of over 30% in job vacancies.
The research carried out by SSP and CWJobs shows that the IT economy remains strongest in Greater London and the South East; these two regions accounted for 65% of all IT job vacancies in April ñ June 2002. Greater London continues to represent the largest share of IT vacancies in the UK with 33.8% of all job vacancies, although it has seen its share of vacancies fall by 5% compared to April ñ June 2001.
In spite of the quarterly 45% drop on IT vacancies in April - June, the North West has held up its overall share of IT jobs in the UK, with 7% of all UK IT vacancies, compared to just 6.6% a year ago.
The West and Wales now represents almost 10% of the UK IT Skills economy, compared to 8.2% in Q2 2001. Scotland and Northern Ireland have also increased their share of the IT skills market from 2.8% a year ago to 4.1% in Q2002. (Figure Two).
The North East, the Midlands and the West & Wales all saw their share of the overall IT job vacancies fall in April ñ June 2002.
Nigel Sterndale, Publisher at CWJobs said:
ìThe IT sector makes a crucial contribution to the UK economy, with over one million people employed in IT and communications. Our research shows that the slow down in the IT industry is starting to ease up and we can afford to be cautiously optimistic. In the longer term, IT skills will play an important role in the recovery of the economy and employers should ensure that they have the appropriate recruitment and staff retention strategies in place so they are not caught out once the economy picks up and IT skills are in short supply again.î
Notes to Editors
The CWJobs/SSP quarterly ëSurvey of Appointments Data & Trendsí is based on data taken from all the jobs advertised in the UKís leading IT and multi-sector recruitment web sites, together with jobs advertised in IT business magazines, as well as national & selected regional press. The survey provides the most comprehensive picture available of regional differences in IT vacancies throughout the UK. These sources provide information on up to 300,000 jobs each quarter. The survey does not include vacancies for contract, sales or overseas-based positions.
CWJobs.co.uk is a specialist in online IT recruitment and one of the UKís leading commercial job boards, serving contract and permanent IT jobseekers throughout the UK. The site draws over 180,000 unique users each month, attracted by the opportunity to search an average of 10,000 job opportunities.
IT Job Vacancies in the UK Fell by 28% in April-June 2002
CWJobs/SSP Survey Highlights Variations in UK Regional IT Vacancies