The number of jobs available for IT contractors working in the financial services sector fell 29 per cent last month, according to a new report.

The latest survey from pre-employment screening company Powerchex contrasts sharply with June’s report, which showed a 320 per cent jump in job offers to IT contractors in the sector. It also contradicts recruitment company Michael Page, which recently said that the IT jobs market was stabilising.

But overall, Powerchex found that the total number of job offers had increased by 15 per cent in July.

Alexandra Kelly, director at Powerchex, said: “Summer tends to be a quieter time of year, so the recent 15 per cent increase in recruitment activity is undoubtedly a good indication of the confidence levels of financial services companies.

“However, we are seeing considerable volatility in month-on-month recruitment activity, which indicates that the job market is still some way from settling down.”

As well as with IT contractors, Powerchex noted volatility among stockbrokerage firms, which made 12 per cent fewer offers in June compared to May, but offered 76 per cent more jobs in July.

There may be better news for IT contractors in other sectors, however, as a recent study by, an online marketplace for freelancers, revealed that many small businesses in the UK are increasingly relying on IT contractors to support their IT investment.