Australian IT employment is showing primary signs of recovery, according to new data released by Peoplebank.

The technology human resources specialist revealed that a rise in contractor hiring across the country's private and public sectors continued in July, which has also lifted overall wage levels by five per cent.

Suggesting that this increase in temporary employment in the IT sector is a response to economic uncertainty, Peter Acheson, chief operations officer at Peoplebank, claimed that businesses are beginning to conduct recruitment campaigns again.

Mr Acheson explained that this trend has been witnessed most obviously in New South Wales, Western Australia and South Australia.

He said: "This is the first positive sign of an uplift in confidence around hiring. I expect we'll see contracting strengthen over the next six to nine months."

Last month, the Australian treasurer Wayne Swann suggested that the worst of the international economic crisis has already hit the country's labor market.