In the second quarter of 2008, turnover of computer service companies was 10 percent up on one year previously. The increase was more substantial than in the preceding two quarters. Since the recovery of the economy in 2004, the turnover growth rate in this cyclically sensitive branch has been above the average for the entire sector business services. The current tight labour market poses a problem for computer service companies.
Turnover computer and business service companies
Turnover growth continues
Turnover growth in the computer branch increased again after two quarters of declining growth. In the second quarter of 2008, a 10 percent turnover growth was recorded relative to the same period one year previously. Growth in the entire sector business services was 8.3 percent in the second quarter. Computer service companies and temp agencies largely account for the surge in economic growth in the sector business services.
Volume changes, 2000-2007
Benefit by economic growth
Computer services and IT companies are cyclically sensitive. When the economy is thriving, the private sector is keen to invest in state-of-the-art technology and perform overdue maintenance on existing systems. During a recession, the private sector is not prepared to invest. Since the economy picked up in 2004, the growth rate of investments has increased each year. The total number of jobs in the computer branch has increased by a quarter since 2004 to an unprecedented 165 thousand in 2007.
Unfilled and new vacancies in the computer branch
Staff shortage obstacle to growth in the sector computer services
The tight labour market more and more becomes a problem for the sector computer services. By the end of the second quarter of 2008, there were 13 thousand unfilled job vacancies. By the end of the second quarter of 2008, two thirds of providers of computer services indicated that the current tight job market is increasingly threatening their business activities. Early 2004, they did not regard this as a problem.