IT job market grows 8,700 in November and 59,400 in last 12 months
National participation rate continues downward trend by falling from 63.8% to 63.6% - 542,000 stopped looking for work in November
Park City - UT -- IT job market grew by 8,700 jobs in November for a total of 59,400 new IT jobs added in the last 12 months. The CEO of Janco Associates, Victor Janulaitis said, “The jobs picture for IT pros is trending up with the moving average showing looking favorable. The number of jobs added in the last 12 months was 59,400 and that seems to be rather anemic for the high-tech business environment that we are in. ”
According to BLS data, the overall unemployment rate dropped to 7.7% caused more by 542,000 who stopped looking for work than the 146,000 new jobs that were created. In October the BLS had reported that 171,000 jobs were added.
Janco continues to be concerned that the data shows the labor market participation rate remains at a record low level. The macro trend for labor participation since 2008 is down by 1.4% which translates to approximately 3.8 million people who are excluded from the labor force calculation. The CEO of Janco Associates said, “The year to year comparison of workforce participation shows how deep a hole we are in. Until those percentages turn around the recovery will be weak at best, IT demand will be dampened, and overall IT employment opportunities will remain at very low levels. ”
IT Job Market Growth Three Month Moving Average
Layoffs abound and there no longer is robust hiring trend for IT Professionals - the economy 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. In our opinion, the IT Job Market is currently at no growth!
The number of unfilled jobs trend line is down as the economy softens and CIOs and CFOs look to control costs and eliminate requisitions for positions that cannot be filled. There was a major pullback of the number of excess jobs for IT Pros - layoffs have impact on number of unfilled jobs available for IT Professionals.
Labor Force Participation
Labor Participation Rate in the low 60's
Inflation is pushing more people back into the active labor market
101.1 million people in the U.S. are not counted in the labor force - see reasons why not working.
Updated with Latest Data
IT Hiring Slows
The latest data for more read on...
Note - data includes the adjustments by the BLS to the initially reported data.
99 CIOs have grown more pessimistic and have started to look more closely at adding more staff
In a continuing survey of CIOs, Janco has found many CIOs are cautious but feel that overall hiring could improve in 2013. The CEO of Janco said, “In telephone interviews in late November of 99 US based CIOs we found that many are looking to a more unsettled future with the looming tax increases, unsure economic future, and unstable world political situation. CIOs are keeping their current overall FTE (full time equivalent) headcounts level to slightly down and are looking to eliminate consultants and contractors along with any marginal activities their own staffs are working on. ” He added, “A few CIOs in selected areas like SF Bay Area and Boston are continue to be bullish. ” Further he said, “Few CIO's are looking to hire within the next 3 months. These CIOs are looking for particular sets of skills to meet the demands of mobile computing and towards implementation processes which will support 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.
Healthcare and Financial Services Job Market
The health care job market continues to be a bright spot on the overall US labor market and is one area where IT Pros can go with the flow and find job opportunities. The implementation of Electronic Patient Records is one of the driving forces in the increased opportunities in this area.