IT jobs set to rise despite public-sector cutbacks

GROWTH in the financial services sector outside London has led to a boost for the information technology (IT) industry, which is expected to return to pre-credit crunch employment levels before Christmas.

A survey published today showed that 21,400 jobs had been created in the IT sector so far this year.

If the trend continues then the industry is expected to account for 1.5 million jobs by the end of the year - a level not reached since 2008.

Paul Winchester, managing director of recruitment firm Greythorn, which commissioned the study, said: "The job cuts that will follow the comprehensive spending review will hit just over 6,000 IT and telecoms professionals who will lose their jobs in the public sector.

"But those job losses should easily be absorbed by the private sector. Although hiring slowed slightly during the election - as companies held back until the political fallout was clear - the third quarter saw a return to double-figure growth."

Employment in the sector rose by 7 per cent year-on-year during the second quarter and then accelerated to 12 per cent in the third quarter.

Winchester said jobs growth had been strong in west Yorkshire, with Leeds benefiting from financial service companies moving back-office functions out of London. He said Dublin had also fared well, with companies taking advantage of falling Irish wages. No Scottish figures were given.