There is a very real threat of a double-dip recession, it is claimed, which will have a negative impact on job prospects for IT contractors.

The coalition government's austerity drive is going to leave a gap in public sector employment that the private sector simply cannot fill, according to Howard Archer, chief European and UK economist for IHS Global Insight.

Earlier this week, Geoffrey Dicks, a senior official at the Office of Budget Responsibility, told the Treasury's Select Committee that the coalition government's budget has increased the likelihood of a double-dip recession.

Mr Archer agrees with this, claiming that it is a huge risk to make public spending cuts when other areas of the economy and still recovering.

He went on to explain: "The big concern is that there is a sharp fall in public sector employment.

"The private sector doesn't fully offset that and therefore that will weigh down on consumer spending."