Second Wave of COVID-19 Costs 10,900 IT Pros jobs in July according to Janco

IT Job Market loses slows with 35,600 since May Impact to be felt until pandemic fades

Park City UT e-janco.com Over 105,000  IT pros lost their jobs due to COVID this year.  Compared to last year at this time, the IT job market has 163,700 fewer jobs.  In addition, with the second wave of the pandemic forcing more shutdowns, Janco has adjusted its forecast for the overall net new IT job to be created in 2020 to just over 25,000.  Many of the CIOs and CFOs interviewed by Janco in the past few weeks feel that with the existing pace of reopenings, secondary shutdowns, civil unrest, and the election, normal IT hiring will not resume until late in the fourth quarter of this year if not early 2021.

The CEO of Janco Associates, Inc., Mr. M. Victor Janulaitis said, “We have found that a number of companies have already shuttered their doors or are expanding layoffs that impact the IT job market.  This includes oil and gas drillers like Whiting Petroleum and Diamond Offshore, retailers like J Crew, manufactures like Briggs & Stratton, and grocers like Dean and DeLuca.  As a result, IT professionals working for those companies are looking for new employment opportunities.  Until after the election and when the public feels they can go back to a normal life, more companies open their doors, hiring for new positions in IT will be limited at best. In addition, the continued civil unrest is slowing confidence by the public, which in turn, hinders corporate confidence.  The CEO added, “Several major companies are resuming existing operations but are holding back on any expansion until after the election in the fall.”

IT Job Market Change - August 2023

YTD IT Job Market growth

IT Job market grew by 8,400 YTD in 2023 with economic slowing and major layoffs. Analysis shows that IT Job Market growth has paused and that AI hiring trend has not taken hold as of yet.

Janulaitis said, “On the bright side the BLS provided revised number downward for jobs lost by IT professionals by 9,780 for May and June. However, there still is a net loss of jobs this year coming from Computer Systems Design / Related Services and Telecommunications 20,400 and 13,500 respectively in the last three months.”

IT Job Market Size Adjustments - Prior Two Months

BLS IT Job Market Adjustments

BLS adjusted up the number of jobs for IT Pros by 8,400 for the prior two months

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


IT Hiring Slows

Change in IT job market size - Number of  jobs created or lost for IT Pros
The latest data for more read on...
Data points to a slowing in the hiring of IT Professionals with 21,500 jobs added in the last 3 months. That is just reoveriing from the "big tech" layoffs in the latst quarter of 2022
Note - data includes the adjustments by the BLS to the initially reported data.


The CEO also said, “Spending for IT products and services has all but stopped as companies reevaluate the state of the economy globally as new waves of selected shutdowns occur. With more companies adopting WFH to address “social distancing” and avoiding in-office contacts, fewer companies are taking an aggressive approach to any additional spending for IT products and services.  It does not help that the US Congress and the President are at a stalemate on pandemic relief.”

Mid-Year 2020 IT Salary Survey released

The CEO added, “We have released our Mid-Year 2020 IT Salary Survey.  Salaries for IT professionals have remained flat for the first two quarters of 2020.  A classic example of supply and demand.  Those who have jobs are content and those looking for new positions will accept almost any salary to be employed.  The median salary for all IT professionals rose from $91,587 to $91,762 an increase of 0.19%.”  For more information on the Mid-Year 2020 IT Salary Survey go to https://e-janco.com/salary.htm.


NOTE: the table below is updated automatically with the latest IT salaries when a new salary survey is published. That happens every January and June. The historical data is available.

Latest Median IT Salaries

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



Hiring Plans
Updated with the latest forecast - Read on...
Impact of recovery on the IT Job Market

 

Growth of IT Job Market (updated)

The number of IT jobs not filled now is just over 100K. Janco's initial forecast for the number of new IT jobs to be added in 2023 is between 20K-30K. Overall that is a flattening of the long term growth rate pattern of IT job market.

IT Job Market Forecast

Data complied and forecast updated by Janco Associates with data as of September 2023

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.