IT contractors who found job opportunities limited during the downturn will be pleased to hear that one expert does not believe a double-dip recession is likely.

According to Andrew Goodwin, senior economic advisor to the Ernst & Young ITEM Club, there is at worst a 20 per cent chance of slipping back into negative growth.

In addition, should the worst happen and the UK does slip back into recession, the Bank of England will simply restart its quantitative easing program.

However, although a shrinking economy is not likely, IT contractors have been warned that the growth of more than one per cent seen in the second quarter of the year will not be repeated as public sector spending cuts take hold.

The Recruitment & Employment Confederation recently claimed that the private sector is not in a position at the moment to absorb job losses from public bodies, which means cuts will see unemployment rise.