IT contractors looking for work will be encouraged to hear thee UK unemployment has fallen in the three months to June.

According to figures from the Office for National Statistics, the number of people out of work is now at 2.46 million, representing a fall of 49,000 since the previous quarter.

It is also encouraging that this reduction is almost entirely down to the private sector. However, analysts are warning that when public sector spending are properly introduced, unemployment is likely to go up again.

Vicky Redwood of Capital Economics said: "This might be a sign that the slowdown in the wider economic recovery is already spreading to the labour market.

"With sharp public sector job cuts looming, we still think that renewed rises in unemployment lie ahead."

Dr Paul Sisson, a research fellow at the Institute for Employment Studies recently warned IT contractors and other workers that private enterprise is not currently in a position to absorb job losses from the public sector.