IT job recovery slower than rest of job market
IT total number of jobs declines one more time - for the second month in a row there was a net loss in the number of IT jobs!
Janco Associates and eJobdescription.com report that there was a net loss of 300 IT jobs in December according to the latest BLS data. The primary driver was the telecommunications sector (4,100 jobs lost) while jobs were gained in Other Information services (1,300 jobs added), Data Processing and Hosting (2,000 jobs added), and Computer System Design and Related Services (500 jobs added). For the last three months there has been a net decrease of 800 jobs (see table below) including the effects of the termination of the Verizon strike included in the data. The CEO of Janco and eJobdescription.com, M.V. Janulaitis said, “Companies are continuing to watch expenses and IT seems to be a function that continues to be the focus of these efforts in many organizations. IT is often viewed as a cost center putting head counts and capital budgets under constant scrutiny. IT jobs are typically not being cut, rather openings are left unfilled. " He added, “Some Chief Information Officers (CIOs) are felling continued pressure to control costs and are looking ahead to delay 2012 hiring and projects as they begin to push those expenses back until the 3rd and even 4th quarters. ”
In Janco’s Salary Survey which is to be released Monday January 9th, Janco reports that salaries have remained flat in large organizations, and on the bright side, a slight increase in mid-sized and small enterprises.
The Labor Department has reported the economy added 200,000 jobs in December, 120,000 jobs in November and 80,000 in October. This continues to be lower than the number of jobs needed for the US economy to stay even with adult population growth.
The IT job market continues to see a slowing in the rate of increase in the number of jobs available, See chart below.
Employment grew in the second and third quarters despite very slow GDP growth because labor productivity fell the first half of 2011. Consequently, real wages, per capita income and living standards are dropping - all exacerbated by hungry state and local tax collectors who refuse to tighten belts as quickly as households and businesses.
IT Job Market Employment Trends
Health Care vs. Financial Services Job Growth
Employment is on the rise in Healthcare IT and spending will reach $40 billion by the end of this year. Much of that growth will come from spending on electronic health record (EHR) systems, mobile health applications and efforts to comply with new government standards. Boosted by increased spending on healthcare software -- which is needed for the rollout of EHR systems -- the U.S. healthcare IT market is expected to grow at a rate of about 24% per year from 2012 to 2014, the study said. Spending on healthcare software rose 20.5% in the past year, from $6.8 billion in 2010 to a projected $8.2 billion this year. Recent mergers and acquisitions in the healthcare IT market also point to growing private-sector interest in software, which will see sales grow at rate of more than 30% annually from 2012 to 2014.