Next generation wireless devices have driven IT contractor salaries up 16 per cent in the last 12 months, the fastest increase since the dotcom collapse.

Demand for content for Blackberrys and other 3G mobiles services has pushed up hourly rates from £37 to £43, according to research from SkillsMarket and the Association of Technology Staffing Companies (Atsco).

Wages are rising because recruiters are struggling to meet high demand for software engineers experienced with platforms designed for mobile wireless devices, said Atsco. Further pressure on pay is predicted with the launch of the Apple iPhone later this year.

The telecoms sector was one of the hardest hit by the technology collapse in 2000, but in the last year contractor numbers in the mobile and wireless areas have surged ahead, said Atsco chief executive Ann Swain.

‘The Blackberry phenomenon is generating huge demand for software developed for business mobile devices,' said Swain.

'The Apple iPhone could do the same for the consumer market as software developers look to build iPhone compatibility into their forthcoming releases,’ she said.

The strongest demand is for developers skilled in wireless technologies, such as .mobi and Bluetooth. The .mobi authoring tools allow websites to be specifically tailored for mobile devices - websites will increasingly have .mobi as well as .com or .co.uk suffixes.

Other factors for the increase in pay include the popularity of social networking sites which has boosted demand for mobile internet, particularly among younger consumers.