Employment and compensation picture for IT Professionals is not improving
A net gain of only 3,400 jobs in June - versus the 6,600 jobs added in April and 200 in May - Salaries are up less than 1%
Janco has found that market for IT Professionals continues to struggle. IT reflects the malaise of the US economy and added only 3,400 IT jobs in June while the total job market increased by 80,000 in June versus 69,000 in May and 115,000 added in April. At the same, the number of individuals still looking for jobs is at record low levels at a participation rate of 63.8% -- the lowest it has been since 1980. In California the overall unemployment rate is 10.8% and Nevada tops that with an unemployment rate of 11.6%. The CEO of Janco Associates, Inc. , Victor Janulaitis said, “With low hiring demand and low participation rate the picture is not pretty for recent IT graduates and other IT professionals looking for new jobs. With that in mind employers are under little pressure to increase compensation. ”
In Janco’s just released its 2012 Mid-Year IT Salary Survey they found that salaries for IT professionals have continued to remain flat. The CEO of Janco Associates said, “There had been some hope that the job market had turned the corner and that confidence was going to be high. That is not the case; companies continue to pull back. " He added, “We do not see any change until after the elections, new tax increases from the new health care law, and the uncertainty posed by the automatic tax increases in January of 2013 are addressed - CFOs and CIOs are cautious at best. ”
There was a net increase of 3,400 seasonally adjusted IT jobs in June according to the latest BLS data. There was an improvement in computer system design and related services accounted of 8,400 jobs; 700 jobs in Data Processing, hosting and related services; and another 700 jobs in other information services. Those gains were offset by a loss of 6,400 jobs in telecommunications.
In a continuing survey of CIOs hiring trends Janco has found that CIOs are not as optimistic as they were earlier this year. Many of the CIOs interviewed by Janco do not feel that overall hiring will improve significantly until sometime in 2013. The CEO of Janco, Mr. Victor Janulaitis said, “In telephone interviews in late May of 107 US based CIOs we found that most have some short term needs that are of a ‘temporary’ nature. CIOs are continuing to keep the overall FTE (full time equivalent) headcounts level and do not see any increase in permanent staffing within the next several months. " Janco’s CEO added, “A few CIOs in selected areas like SF Bay Area and Boston are bullish, however for the most part CIOs continues to remain cautious. ”
He added, “One in five CIO’s are looking to hire lower level staff within the next 3 months to fill short term needs. Many are looking for contractors and consultants with particular sets of skills to meet the demands of mobile computing. In addition some of these same CIO are looking towards implementation process to allow users to use their own personal devices - BYOD (Bring Your Own Device) - to minimize capital expenditures and improve ROI. ”
In the last three (3) month the IT Job market shrank by 24,600 jobs. 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.