IT professionals are increasingly turning to contract roles as permanent hiring slows, according to new research from the Association of Professional Staffing Companies (APSCo), the trade association for the professional recruitment sector. 

The data – provided by the world’s largest network of job boards, Broadbean Technology – revealed an 11 percent month-on-month fall in permanent jobs in the sector as demand continues to slow following the spikes in hiring noted last year. Contract vacancies also dropped 10 percent in this time frame.

However, despite this decline in demand, the data suggests that skills shortages still prevail, with application numbers continuing to fall. The number of professionals applying for permanent positions in September 2023 was down 30 percent year-on-year, despite the tech layoffs reported at the beginning of the year.

Applications for contract positions, in comparison, remained stable compared to September last year, suggesting that more professionals are turning to temporary employment opportunities in the current climate.

“The last nine months have been turbulent for the IT sector with tech layoffs influencing the market. However, as a skill-short remit, an influx of active candidates isn’t necessarily bad news. What is noteworthy, though, is the broad stabilization in applications for contract positions, which suggests that many professionals are choosing to move into this more lucrative avenue as demand for permanent positions declines. For businesses and recruiters, this will have a longer-term impact on future recruitment in the profession. As more experts capitalize on the opportunity to command higher pay through contract work, securing top IT talent will become increasingly expensive,” says Ann Swain, Global CEO of APSCo.