August 2014 saw a surge in contractor vacancy growth, reaching a 16 year high, giving it the fastest growth rate since May 1998.
A recent survey from REC and KMPG indicated that the "appetite for IT workers on a temporary basis grew sharply in August". IT contractor opportunities increased in August at the fastest rate for 16 years, taking their index score from 63.9 in July to 65.6, the highest rise since December 2013. Additionally, these growth rates have now been seen to accelerate for the fourth month in a row.
REC further continued to discuss the cause of such growths to be end-client organisation's growing confidence to invest in IT and Digital media, alongside the clients increasing desire to tap into short-term strategic gaols, whereby the highly skilled niche contractors would be in greater demand.
The report's findings highlight the greatest IT skills in demand for August were Development, Java script, .Net and SQL.
However there were concerns from KPMG that if this level of growth was to continue, although the skills shortage will boost industry average wages they warned that "this is creating a market that is both unsustainable and unrealistic".
However, the current market growth presents a lot of opportunity for IT contractors. With the growing desire to recruit the best talent, contractors will have more leverage to negotiate higher pay rates.