New IT Contractor Market Boom? Freelancer Rates to Soar

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Older Contractor - New IT Contractor Market Boom
Older Contractor and the current market - New IT Contractor Market Boom

New IT Contractor Market Boom

Market conditions are pointing to a new IT Contractor market boom.

Demand for IT Contractors is now outstripping supply for projects.

The signs are there that a new IT contractor market boom is coming.

Those contractors who got into freelancing since 2007, 11 long years ago, have never experienced a freelance boom.

Older limited company and umbrella company contractors can tell them of agencies and clients having to bid contract rates ever higher to get the contractors they want for their IT projects.

IT Skills Shortage Rising According to New Report

According to a new report by the Recruitment and Employment Federation, skills shortages are starting to squeeze the market.

Overall unemployment is now down to 4.3% in the UK. That’s the lowest since 1975 – 43 years ago.

People generally are still worse off than they were in 2007.

IT Contractor Rates

However, IT Contractor rates are powering ahead.

According to ITJobswatch, Developer contract rates have risen by almost 6% in the last year to £450 a day on average. That’s well ahead of the inflation rate.

Indeed Senior Developer rates have risen by more than 8% to £515 a day on average.

C# developer contract rates are up by more than 15% in the last year for advertised contracts.

And things are only just starting to heat up.

Labour Market Tightening According to Bank of England Governor

Said Mark Carney, the Bank of England Governor “We think that the labour market has continued to tighten. We see it in the gradual firming of wages, particularly in the private sector”.

According to the Federation, the number of candidates available for permanent and temporary roles has “continued to contract at historically sharp rates.

“Demand is greatest of all for IT and computing jobs”.

So, the pieces are all in place for an IT Contractor market boom.

Demand Increasing for IT Contractors

Unemployment is at the lowest rate for 43 years. Demand for IT Contractors is now greater than the supply of them.

Rates are already climbing much faster than inflation.

Another factor is that the numbers of foreign workers has declined greatly since the Brexit vote.

So, those who have never experienced an IT contractor market boom are going to be very pleasantly surprised in the next few years.

And contractors who have seen several booms and busts will be thinking “At last. What took you so long. Hello old friend”.

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