The worst is over. All the spending surveys highlight it, the financial results are showing it, all the big analyst groups are forecasting it, and so too are the major IT recruitment agencies.

The latest Elan Employment Trends Report, for example, has found evidence of a slow but steady recovery in the IT jobs market, with improvements in most job categories. The recruitment group regularly surveys the IT jobs market at UK blue chip companies.

Permanent IT positions will continue to be the mainstay for technical jobs over the next 12 months, with more than half (59%) the companies surveyed expecting to post vacancies over the coming year.

The IT contractor market, after three years of steady decline, is also poised for a rebound. The survey found that 15% more companies were employing contractors than at this stage in 2002. Activity has been boosted by an expected surge in ecommerce in the run-up to Christmas 2003 and increased concerns about data protection rules.

In 2004 the number of contractor vacancies is expected to rise by a further 10% as companies abandon their ‘make do and mend’ strategies and overhaul creaking systems.

Elan’s regional sales director, Kate McClorey, says: “The landscape of the IT jobs market is changing, and the trend appears to be towards taking on permanent staff.”