Langley James IT Recruitment Market Review – July

Key points

  • Stronger growth of permanent and contract staff appointments
  • Record decline in availability of permanent candidates
  • Starting salary growth close to June’s high

Acceleration in growth of staff appointments…

Langley James placed greater numbers of people into permanent and contract roles during July, with rates of expansion accelerating to five- and seven-month highs respectively.

…buoyed by strengthened demand from employers

Available job vacancies continued to rise apace in July, with growth quickening to the fastest since January. The private sector remained the principle engine of job creation, although the public sector recorded a solid increase in vacancies.

Record drop in availability of permanent candidate…

Permanent staff availability fell further in July, with the rate of decline accelerating to the sharpest in Langley James’ history. Contract staff availability meanwhile decreased at the fastest pace since March 1998.

…fuels sharp increase in salaries

Average starting salaries for people placed in permanent jobs continued to rise strongly in July. The rate of increase was only fractionally below June’s record high. Contract staff pay growth was also marked, despite easing from the 79-month high recorded in June.

 Permanent IT staff skills in short supply – eCommerce, .Net, Java, SQL, PHP.

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

 Staff appointments

Growth of permanent placements at five-month high

The number of people placed in permanent jobs rose for a twenty-second consecutive month in July. Moreover the rate of expansion accelerated to the fastest since February. Anecdotal evidence pointed to strong client demand, reflective of improved confidence in the general economic outlook.

Fastest rise in contract billings in 2014 so far

Billings from the employment of contract staff continued to increase in July. The rate of growth was substantial, having quickened to a seven-month high. Our consultants attributed higher revenues from short-term placements to rising business requirements at clients.


The latest reading was the highest since January and signalled a strong rate of expansion in demand for staff.

The strongest overall rise in demand was recorded for private sector permanent employees, where growth was at a five-month high.

Demand for staff by sector

Permanent staff – Demand for IT staff is holding steadfast in position 4, with Construction, Engineering and Nursing occupying the top 3 spots.

Contract staff – Demand for IT contractors fell from position 4 to position 7.

 Staff Availability

Availability of permanent staff

The rate of decline in permanent staff availability hit a new record in July.

Availability of contract staff

Contract staff availability continued to fall in July, extending the current period of contraction to 13 months. Moreover, the rate of decline was the sharpest since March 1998.


Permanent salaries

July data signalled a further strong increase in average starting salaries for candidates placed in permanent roles. The latest rise was only fractionally slower than June’s record.

Contract pay rates

Daily rates of pay for staff in contract employment continued to rise in July. Although easing from June’s 79-month high, the rate of increase remained marked.


 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.