IT contractors who are looking at losing their public sector job roles as spending cuts are implemented can easily transfer their skills to the private sector, it is claimed.

According to Recruitment & Employment Confederation Technology Executive member Dave Pye, IT contractors should have ample opportunities to find suitable roles in private business.

Companies have been preparing for the Comprehensive Spending Review and the ensuing cuts, armed with the knowledge that more IT contractors are needed to drive business forward, says Mr Pye.

"This means there will be less of an impact on technology recruitment in the next six months," he added.

Steve Huxham, chairman of the Recruitment Society, recently called on the government to introduce legislation or tax breaks that encouraged smaller firms to hire more staff, such as IT contractors.

He suggests that the biggest threat to the employment market is an economic recovery without any job creation.