"The performance of the Australian economy to a large extent drives growth in this labour market. It is likely that previous economic conditions had caused companies to rethink their hiring strategies, making them hesitant to recruit additional staff particularly those with less or no experience."

Trevor said companies were increasingly looking for experienced ICT contractors in place of permanent staff in order to add to their workforce for current projects without having to commit themselves to permanent hires.

"Employers continuing to exercise caution when it comes to hiring candidates are in danger of losing local skills should they wait too long to attract and secure talent," he said.

The Candle Skills Index shows strongest demand in:

The west coast resources boom is also having an impact, according to Candle.