IT Job Market and US National Employment Data

IT job market prospects are tied to overall US national employment -- Janco reports IT Job market is in full recovery move

Hiring of IT Pros Robust but Slowing - see CIO and IT Management Newsletter

IT Job DescriptionsIT Job Market and US National Employment Data - On a monthly basis - typically on the first Friday of the month - Janco publishes an analysis of the IT Job Market utilizing the BLS labor data and its proprietary data. See the latest press clipping go to Janco's Press Clippings and eJobDescription.com.

Recent IT Job Market size - Recovery in full swing for IT Pros
Data as of August 2022

The salary survey is updated twice a year; once in January and then again in July. Janco and eJobDescription.com not only look at base salaries, they also report on total compensation and hiring trends for IT professionals.

Monthly Job Market Growth

Monthly IT Job Market Growth
Data as of August 2022
Source BLS analysis by Janco Associates, Inc.

Hiring of IT Pros is hindered by the lack of qualified individuals. This will have a dampening impact on the growth of the IT Job Market size.

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NOTE: The graphic below is updated with each new IT Salary Survey. The chart compares the data from the period of the survey to prior period.

Latest Median IT Salaries

Latest Mean IT salaries
For the latest data go to the current IT Salary Survey


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You can get a free copy of the full survey if you provide 10 valid data points and use a corporate e-mail address. Free e-mail accounts like gmail or yahoo do not qualify as we have no way to verify the accuracy of the data provided.

Hiring of IT Pros is at a record pace

Recovery of the IT job market continues as all of the jobs in the IT Job Market lost in 2020 due to Covid and the related shut downs have been recovered. In addition, Janco's current forecast is that close to 191,000 new IT jobs will be added in the 2022 calendar year.

Growth of IT Job Market (updated)

As a result of Covid-19, 33,200 IT jobs were lost in 2020. In 2021 213,100 jobs were added to the IT Job Market - Recovery Continues in spite of inflation and high energy costs

IT Job Market Forecast

Data complied and forecast updated by Janco Associates with data as of August 2022

YTD IT Job Market growth

IT Job market growth continues in spite of inflation and high energy costs. Hiring of IT Pros is at record pace with 45.7K more IT jobs than at the same time last year.

Moving average of IT job market growth
A robust hiring trend for IT Professionals - the recovery is slowing however, there are a number of jobs unfilled by IT Pros. The primary culprit is the lack of qualified individuals to fill the open positions.
Unfilled IT Jobs

Based on BLS data analyzed by Janco over the last 12 months over 200,000 IT jobs remained unfilled due to a lack of qualified individuals.

Historic IT Job Market Size

Historic IT Job Market Size

Data complied by Janco Associates with data as of August 2022

 

The current size of the IT job market to just over 3.92 million positions - an all time record high.

IT Job Market Segmentation
The size of the Data Processing, Hosting, and Related Services market has not grown as fast as the Computer systems design and related services portion of the overall IT Job Market


See IT Job Families

Hiring Plans for IT Professionals

CIOs have been given the green light to resume IT development. The hiring picture is much optimistic for IT Pros. However, demand for contractors and consultants is slow due to economic uncertainty. The big but is that in the slowing in the rate of the recovery.

Hiring for IT Pros in the US is in robust. Many positions for key skill are unfilled due to lack of qualified candidates applying for those positions.


Current IT Hiring Plans

Future IT Hiring Trends by CIOs

The treat of an economic downturn, inflation, high energy cost, and the continued war in Europe will dampen hiring for IT pros over the the next few quarters.


Based on Janco's interviews and survey data the following positions are in high demand.

Positions in demand
Updated with the latest IT Salary Survey Data see IT Salary Survey post pandemic

Approximately 85,000 undergraduate degrees are issued for majors in Information Technology. This number has been reduced by close to 10% due to Covid related shutdowns.

Read on about Career Opportunities

U.S. Department of Labor National Employment Report


In August 2022, the IT job market size grew by 21K jobs and 52.6K in the last 3 months

The BLS reclassified jobs that are in the Telecommunication to Computer Systems Design and related services which is why the individual classifications show a large change last year.

Net Change in the number of IT Jobs

202.8K IT Jobs have been added in the past 12 months - 52.6K of those were in the last 3 montbs.


In interviews with both CIOs and HR professionals, Janco has found that hiring of IT professionals is a record high levels. This even with inflation and the specter of a possible economic downturn.

YTD IT Job Market growth

IT Job market growth continues in spite of inflation and high energy costs. Hiring of IT Pros is at record pace with 45.7K more IT jobs than at the same time last year.

CIOs say short term hiring will continue to be hot

Job growth in the IT job market is on the positive for each month for over a year. In the last 12 months 202.8K jobs have been added to the IT job market. Trend line for number of IT jobs added is positive..

IT Job Market Gains

3 month moving average

The three month moving average for IT job market growth trend for IT Professionals shows a slight downward trend. That metric is the change rate in increase and/or decrease in the total number of new hires. What it means is that CIO and HR recruiters are continuing to hire at a rate that is higher than in prior months. When that metric falls below zero then hiring demand will fall back to previous levels.

Moving average of IT job market growth
When Communications jobs (shrinking source of IT Jobs)
are excluded there is a trend for IT Job Market
growth across all other sector of the IT Job Market.

Janco's CIO Hiring Plan Forecast, for the time being, remain high. Many IT organizations still have open requisitions for IT pros that they are not able to fill because of the lack of good candidates.


Current IT Hiring Plans

Future IT Hiring Trends by CIOs

The treat of an economic downturn, inflation, high energy cost, and the continued war in Europe will dampen hiring for IT pros over the the next few quarters.


Jobs initially added to the US Job Market

Initial number of new jobs reported

Read On Unemployment by State...

IT Job Market Employment Trends

The IT job market has recovered all of the IT jobs lost due to COVID and the shutdown. The size of the IT Job Market is now larger than existed before the pandemic.

Telecommunications positions now make up 19% of the total IT Job Market. Down from a high of the 22% in prior years.

The chart below is updated with Latest Data


Updated with Latest Data - Includes impact of recovery from reopening

IT Job Market Size


It is very clear that telecommunication professionals are in a shrinking job market -- there is no end in sight.

Net Change in the number of IT Jobs

202.8K IT Jobs have been added in the past 12 months - 52.6K of those were in the last 3 montbs.


Prior Months IT Job Market Changes Adjustments

Adjustments to the number of IT jobs created were made by the BLS for the prior two months. A total of 5,900 IT job were added to the BLS data that was previously reported.

BLS IT Job Market Adjustments

BLS adjustments to the size of the IT Job Market after the initial report - removed .3K jobs to prior reported

Before adjustments
IT job market status before BLS adjustments
After Adjustments
IT job market status after BLS adjustments

Labor Force Participation

The work force participation percentage of all employees (male and female) is 62.4%. There are over 99.2 million people who are not in the labor force. Inflation is driving more people back into the job market.

Work Force Participation

The Labor Force Participation percentage has fallen dramatically as a result of the Covid-19 shutdown..

Labor Participation Rate in the low 60's

Inflation is pushing more people back into the active labor market

Labor Force Participation rate stabilized at lowest level in the last 50 years

92 plus million people in the U.S. are not counted in the labor force - see reasons why not working.

The overall unemployment rate rose while the labor participation rate rose is improving. That is a very favorable sign. More people are entering the labor market.

However, there are rumblings that a recession is just beyond the horizon are getting louder.

Reasons why people are not in the labor force are varied.

 

US National Employment

The US National unemployment rate had fallen from its peak levels in 2012 to the current levels. However this needs to be tempered with the fact that the labor market participation rate remains at the lowest it has been in over 50 years. The increase is due to the Covid-19 shutdown.

CIO Hiring Trends

The Covid-19 shutdown caused a loss of over 30,000,000 jobs in the entire US Labor Market.

Jobs initially added to the US Job Market

Initial number of new jobs reported

H-1B Visas

Offshore outsourcing companies continued to make up the majority of the top H-1B visa applications according to new government data. These offshore firms have been adding employees by the thousands as their revenues increase. Infosys (India based) led the list in 2014 with 23,759 visa applications with a median salary for those positions $72,254, edging out Tata (India based) which had 14,098 visa requests-with a median salary for those positions $66,600.

In 2018 Infosys still lead the pack, but with fewer employees than in 2014. The median salary they paid was $82,993 -- almost $10,000 more than in 2014.

Over $15 billion dollars were paid to H-1B visa holders in 2018 with a median salary of $91,604.04

The median slay paid to the 2018 visa holders as lower than the median salary paid to all US IT professionals. That was $93,077.

H-1B Visas

US Federal Government Compensation Cap

US Federal Regulations set limits on how much companies can get reimbursed for the salaries they compensate their management. Companies can pay more, but cannot charge the government for the amounts paid above the limit. For many years, the caps only applied to the top 5 executives, but the rule changed in December 2011, and now the cap applies to all employees, not just the top 5 executives.

Federal Govement Compensation Cap


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