Langley James IT Recruitment Market Review – August

Key points

  • Demand for staff increases at fastest pace since April 1998
  • Growth of appointments remains marked, despite easing
  • Candidate shortages fuel strong pay growth

Growth of staff appointments eases but still marked…

Permanent placements growth remained strong in August, although eased from the five-month high recorded in July.  Contract billings also rose at a marked pave, albeit the slowest since May.

…supported by fastest rise in vacancies for over 16 years

The number of available job vacancies rose further in August with the rate of expansion the sharpest since April 1998.  Both the private and public sectors saw increased demand, with the former recording the sharper growth.

Strong pay growth…

Permanent salaries continued to rise at an elevated rate in August, with the latest increase only slightly lower than June’s survey –record.  Contract pay also rose strongly, and at a faster pace than in July.

…underpinned by tight candidate availability

The availability of staff to fill job vacancies fell further in August.  Permanent candidates were in particularly short supply, with the latest decline in availability again steep albeit easing from July’s series-record.

Permanent IT staff skills in short supply – Business Intelligence, Java, .Net, SQL, PHP, Programmers, Project Managers

IT Contractor staff skills in short supply – Business Intelligence, Developers, Java, Linux, .Net, SQL

Staff appointments

Growth of permanent placements eases but still strong

The number of people placed in permanent jobs continued to increase in August, extending the current period of expansion to 23 months.  The rate of growth remained strong, despite moderating from July’s five-month high.

Further marked rise in contract billings

Contract billings increased for a sixteenth consecutive month in August.  The rate of growth remained strong, despite easing slowly since May.


Both permanent and contract staff saw strong increases in vacancies with rates of growth the strongest since March 1998 and May 1998 respectively.

Demand for staff continued to rise at a considerably stronger rate in the private sector than in the public sector during August.

Demand for staff by sector

Permanent staff – Demand for IT staff increased to position 3 in August, with Engineering and Nursing occupying the top 2 spots.

Contract staff – Demand for IT contractors fell again position 7 to position 8.


Staff Availability

Availability of permanent staff

The availability of candidates to fill permanent job vacancies fell further in August.  The rate of decline remained considerable, despite easing to the slowest in three months.

Availability of contract staff

Contract staff availability continued to fall in August.  The latest drop was the fourteenth in successive months.  That said, the rate of decline eased slightly to the slowest since May.


Permanent salaries

Average starting salaries for people placed in permanent jobs continued to rise in August.  The rate of growth remained strong, despite easing slightly for the second month running following June’s record high.  Salaries increased in all four English regions, with the sharpest increase signalled in the South.

Contract pay rates

Daily rates for contract staff rise again in August.  The latest increase was strong and faster than in July, which consultants attributed to robust demand for short-term staff.

About Langley James

Langley James was founded in 1999 by James Toovey, a highly respected recruitment industry professional.  James wanted to provide something unique: a bespoke recruitment service which was founded on service excellence.  With offices in London and Manchester, we are now providing our recruitment services throughout the world and over the last 15 years have worked with some of the most respected companies in the world.

To find out why so many companies turn to Langley James for support in fulfilling their IT recruitment needs, call and speak to one of our specialist consultants today on 0845 124 9555.