Canberra IT&T Market Update: July 2009
We are seeing a strengthening in demand (compared to the soft market during April and May) for both contractor and permanent vacancies.
The Canberra market however remains relatively flat (in terms of both overall job and salary levels) compared with other markets, notably Sydney.
The impact of the Global Financial Crisis and departmental responses to the Gershon Report's recommendations around the use of contractors contributed to an overall reduction in the number of engaged contractors of more than 15% at the end of June.
The contract rates being offered during the 30th of June renewal process were also down.
Most Federal Government Agencies offered rate decreases of between 5% and 20% to contractors who were selected for renewal.
Contract rates for Project Managers, Business Analysts and Testers in particular declined significantly, whilst SAP Analysts, Security Specialists (Infrastructure) and Senior J2EE
Developers enjoyed modest increases.
These developments will make securing a new contract role substantially more competitive despite the recent slight improvement in vacancies.
Unlike most other markets, permanent demand in the Canberra market has been strong, however there has been downward pressure on salary levels.
Sharepoint and .Net are the two skill-sets currently in high demand.
Looking ahead, we expect the improvement in demand for contract and permanent roles to continue through to the end of August.
From September, there is the possibility of some volatility in the contractor market; however, permanent demand is likely to remain strong, reflecting the mandate for departments to staff their IT teams on a permanent basis.
Finally, we are expecting the downward pressure on salaries to continue in the short term; at least until there is a widespread recovery across the National market.
