IT job market growth slows to a 5-year low
IT job market slows to a growth rate of only 0.27%. Janco reduces it projected 2016 IT job market growth to 87,700 news jobs from 91,000.
Park City - UT - www.e-janco.com - IT job market growth slows to a 5-year low - Janco's analysis of the latest employment data from the BLS shows almost a halt in IT job market growth. The data shows the moving average for new IT jobs created continues to fall and is at a growth rate of 0.27% which is at a five-year low. The CEO of Janco, M.V. Janulaitis said, "Only 23,700 new IT jobs were created in April and YTD new IT job creation is behind by 26,200 of the 2015'a pace. Considering that 2015 had a slowing in IT job market growth, this is not good. "
The CEO added, "There is an acceleration in the rate of slowdown in the IT Job Market. If this continues, as we think it will, there is a probability that there could potentially be a net decrease in the size of the IT Job Market in 2016. We will only be able to get visibility of that when we see one or two months of new data. However, we have already lowered our best case forecast for net new IT jobs for the balance of this year. " He added, "Many companies are cutting back significantly on contractors and consultants. That trend will continue until at least the 3rd quarter of this year. "
Janco interviewed over 75 CIOs in the last several weeks as part of its semi-annual salary survey ( https://e-janco.com/salary.htm ) data collection process. CIOs were much less optimistic this year than at the same time last year. A preliminary hiring forecast by job levels within the IT function shows that long term hiring plans for both IT Staff and "contractors/consultants" is flat.
As confirmation that a slowing of the IT job market, one IT contractor, who deals with IOT solutions and is looking for a new position, said, "Finding opportunities is difficult at best. Only those with the right set of experiences are even given interviews. "
The CEO also said, "On the plus side, CIOs report that CFOs are not completely adverse incremental spending for IT related activities that have operational support and have a good ROI. We have found no IT initiatives that are being approved to upgrade technology for the sake of IT's desire to have the latest new thing. "
This chart is not the originally published one, rather it is updated with the current data based on the analysis by Janco Associates, Inc. For the latest IT Employment Data click here.
The CEO also said, "On the plus side, CIOs report they are still allowed limited incremental spending for IT related activities, but they are required to have good business cases with support from the operational side of their enterprises. Few IT initiatives are being approved to upgrade technology for the sake of IT's desire to have the latest new thing. "
Janco is an international consulting firm that follows issues that concern CIOs and CFOs. The firm publishes a series of IT and business Infrastructure HandiGuides® and Templates including IT Infrastructure Policies and Procedures, Disaster Recovery/Business Continuity Template, Security Template, IT Job Descriptions, and its semi-annual IT Salary Survey.