The latest Report on Jobs from KPMG and employment agency body REC shows demand for permanent and temporary IT staff continued to grow strongly in October.
Growth of demand for permanent IT staff was the weakest in three months, but remained stronger than the UK-wide trend overall covering all industries.
The demand for temporary IT workers was the second-highest level since August 1998, according to the monthly report.
Heath Jackson, partner in the CIO advisory practice at KPMG, said:
“The demand for permanent and temporary IT staff has continued to grow strongly for yet another month, though a slowdown in salary growth can be seen and comes as little surprise.
"Businesses are struggling to make sense of paying over the odds for people that lack the skills that are required."
According to job website Indeed, as of October, IT job postings increased 15 percent since September 2013
There are currently 139,833 IT job postings on Indeed.co.uk, the second largest number of any sector, trumped only by the retail sector (which is naturally high in the run up the Xmas period).
The jobs most in demand from employers, according to Indeed, are graphic designers, data analysts, IT support technicians, maintenance engineers, business analysts and data administrators.
Lee Chant, managing director of recruitment firm Hays Information Technology, said: "There are definite pockets of very significant rises in IT salaries, which have been fuelled by skill shortages. Jobseekers often have the pick of two or three jobs - they get snapped up quickly by employers and they often receive a counter offer from their current employer, which can push their salary up even further."
Hays research among employers shows that 67 percent of firms plan pay increases in the next 12 months, and that 65 percent of IT professionals anticipate they will move jobs in the next 12 months.
Chant said, “Given that businesses are now more confident about the year ahead and they have plans to take on more staff, we expect to see this salary growth to take a greater hold by the middle of next year.
"Some employees have already spotted they can earn more and decided to make a career move. Others will follow suit over the next 12 months and the situation could soon reach crisis point for employers fighting for the talent they need."
He added: "Employees rarely move for salary alone but it is always an important consideration and employers need to look at what they can offer in order to attract and retain the best employees.”
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