Lower job market growth forecast by Janco
40,800 fewer jobs were added YTD as of September in 2016 than 2015. Janco now forecasts that only 74,200 new IT jobs will be added in all of 2016.
Park City - UT - www.e-janco.com - Janco’s analysis of the latest BLS data shows that the pace of new IT job creation has continued to fall behind the growth rates of 2015. The CEO of Janco Associates, Inc., Mr. M. Victor Janulaitis said, “Last year at this time 101,500 new IT jobs were created. For the same period this year only 60,700 were created. That is 40,800 fewer new IT jobs year-to-date.”
The CEO of Janco, said, “We have reduced our forecast for the number of new it jobs created in all of 2016 to be 74,200. This is below the number of jobs created in the 3 years (2013, 2014 and 2015). If there is a continued slowing of the economy, then the number of new IT jobs created in 2016 could fall to 65 thousand. That would be a truly bad omen for IT pros, recent graduates and next year’s graduating class.
The CEO added, “In reviewing the last 24 months of data on new IT job creation, it is very clear that there is a bias that has the number of new jobs created pointing to a downward trajectory.” He added, “In direct conversations with 83 CFOs we find that they are projecting slower growth rates in the budgets for 2017. Few of these C-level executives are comfortable with the overall direction of the current business environment. This also is reflected in acquisitions for new IT equipment and major application developments and implementations. Many of these executives are hedging their bets and forecasting flat budgets for the new year. A common thread we heard that it will be easier to come back and get more monies then to having to deal with cost cutting after the new year starts.”
Janco interviewed over 107 CIOs in the last several weeks as part of its planning for the 2017 IT Salary Survey ( https://e-janco.com/salary.htm ). CIOs are less optimistic this year as 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” are down to flat.”
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.
Janulaitis said, “Several negative factors are: brexit, the recent fall in the value of the pound, and the uncertainty generated by the US election. With one candidate there is the specter of higher taxes (slowing the economy) and with the other is the uncertainty of what they will do and the resulting action from both the economy and our trading partners. In any case, hiring plans are flat for most IT positions and dependence on contractors and consultants is being reduced as an on-going cost reduction continues.”
The CEO also said, “On the plus side, many CFOs are not completely adverse to 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.”
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.