After cutting 132,000 jobs in 2010, the public sector is now turning to freelancers to fill the gaps, according to a recent study by PeoplePerHour.com.

A significant amount of these public sector projects are for umbrella contractors with digital skills. The private sector was quick to utilise the services of freelancers during the recession, but the public sector has only recently started following suit.

PeoplePerHour.com reports that invoicing for digital projects this year is seven times higher than it was last and the total number of postings for digital jobs has increased by 315% in the past 12 months.

Digital sector consultants in the North West saw a year-on-year increase of more than 300% in their wages in the first quarter of this year. In the UK as a whole, the increase was 200%. Freelancers with skills in web design and programming have seen their earnings potential increase by 178%, whilst e-commerce experts could command 216% more than they did this time last year.

There’s good news for women IT contractors as well. Women gained a five out of five ranking for their quality of work and the North witnessed a 1000% increase in the number of females entering the IT market.

Xenios Thrasyvoulou, the founder of PeoplePerHour.com, explained that IT, accountancy and law account for more than 20% of economic output and over 11% of employment in the UK. The earnings figures show that the North West is at the centre of both innovation and economic growth for the rest of the country.

The IT industry doesn’t just support growth in other sectors, it underpins and supports technological innovation, an essential element if we are to sustain long term growth, he added.

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Umbrella company contractors north of the border could be encouraged by the latest Bank of Scotland’s Report on Jobs.

The Bank’s latest findings show that the largest increase in demand last month was for people working in the IT sector. The IT industry also demanded more temporary workers than the accounting and financial and executive and professional sectors.

Bank of Scotland chief economist, Donald MacRae, said last month marked the seventh consecutive month where the number of people securing a permanent position increased. Recruitment consultants also reported more vacancies last month as demand for permanent employees increased markedly.

Last month also saw the demand for temps increase at its fastest rate for four months, he continued. Hotel and catering registered the strongest growth as all sectors witnessed increased demand.

Meanwhile, ReThink Recruitment, an employment agency, says that people with IT retail experience could see their earnings increase. The company claims that the demand for specialists in e-commerce has doubled in the past year.

This trend has led to companies bidding against each other for specialist staff and some companies will offer up to 25% more than their competitors in other sectors so that they can retain key employees.

Ian Blair, a director at ReThink, said the demand for e-commerce specialists is unprecedented as major retailers try to improve the functionality of their e-commerce systems. The job market for e-commerce skills is now led by candidates, as demand for retail IT staff has undergone an astonishing turnaround, he added.

© 2011 All rights reserved. Reproduction in whole or in part without permission is prohibited.

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