Demand for IT staff to continue despite slow-down

Demand for IT staff will continue to grow through 2005 and 2006, despite an expected slow-down in the economy, according to recruitment companies and City economists.

Ann Swain, chief executive of the Association of Technology Staffing Companies, said the financial sector, public services and outsourcing companies would drive demand for IT staff in the next two years.

James Wellesley-Wesley, head of UK equity markets at investment bank Robert W Baird, said strong demand for IT staff would boost recruitment firms over the next 12 months.

He told a meeting of IT recruitment companies that their industry would expand by 5% in 2006.

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But Swain warned that growth in demand for IT staff could slow if the economy slowed down.

“The past two years have seen above-trend growth in the industry, but as the UK economy slows in 2006, growth in the IT staffing sector may moderate,” she said.