The latest indicators suggest there has been a massive slowdown in the number of companies looking for IT staff.

According to figures from market watcher NTC Economics, the increasing demand for IT staff slowed dramatically in the first four months of 2008.

NTC tracks the number of temporary and permanent jobs placed with recruitment agencies each month. In April 2007, those agencies were reporting huge increases in the number of IT and computing positions being placed with them. By April 2008, demand had slowed markedly, according to NTC.

The impact of the credit crunch has reduced the number of financial services companies looking to fill vacancies, said Jack Kennedy, an economist with NTC.

That will mean that employers in other sectors can potentially land higher quality candidates. "It has definitely become a buyers' market," said Kennedy.

But while demand has slowed, skill shortages persist in some areas, noted Jeff Brooks, chair of the IT and communications sector of the Recruitment and Employment Confederation. Candidates with skills in Java, C++ and C# are still in demand, he added.