IT jobs sector struggles to recover

Number of positions in the sector is still dropping, according to OECD

Millett: large IT services firms are not as competitive and flexible

The IT jobs sector is set to continue feeling the pinch for some time, as large firms downsize and the industry becomes less “employment-intensive”, according to recent research.

The Organisation for Economic Cooperation and Development (OECD) recently questioned 80 global IT firms and found that jobs in 2009’s second quarter declined by about two per cent on 2008 levels. A further drop of up to three per cent is expected in the near future.

The UK is one of the hardest-hit countries, as IT services jobs have been falling since Q1 2008.

During 2009’s third quarter, they fell by two per cent annually.

Graham Vickery, head of the OECD’s Information Economy Group, claimed that, despite many companies beginning to return to growth, jobs could continue to fall.

“Employment has been much slower to react to the increase than production and is on a slow downward slope,” he said. “Firms are tightening their budgets and not replacing anybody who leaves.”

Dave Millett, director of Equinox Business Consulting, claimed smaller companies were liable to return to hiring quicker.

“Large IT services firms are not as competitive and flexible,” he said. “Many smaller companies are now picking up a lot of work.”