IT job market explodes with 12,500 new jobs in January according to BLS data
Even with the unemployment rate rising to 7.9%, the number of new jobs for IT Pros is now at levels high enough for IT mid-level manager and developrs to say IT is in full recovery mode…
IT job market explodes with 12,500 new jobs in January according to BLS data - The latest BLS data shows a large increase in the number of employed IT professionals. The CEO of Janco Associates, Victor Janulaitis said, “According to BLS there were 12,500 more IT professionals employed in January than in December. That is in addition to the 61,000 adjustment that the BLS added to the base number. ” Further, Janulaitis said, “According to the data there have been over 86,700 IT jobs added in the last twelve months. That level of additional IT employment is robust enough to be called a mini-boom. ”
The CEO added, “When we looked at the number of IT pros employed and compared that with our own independent survey of 106 CIOs in North America we can only conclude that the hiring freezes of 2008 through 2012 have been lifted. We are seeing greater demand for mid-level managers and technologist who can address demands placed on CIOs for more ‘web-enabled’ applications. ”
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Janco’s says, “CIOs are focusing on the near term demands to hire proven managers and get plans in place for more robust hiring in the summer and fall…”
Updated with the latest forecast - Read on...
Impact of recovery on the IT Job Market
The CEO said, “However, not all of the news is good. Janco continues to be concerned that the data shows the labor market participation rate remains at record low levels. Also with taxes increasing on both employer and employee, there is a possibility that the recovery will falters and those new levels could be slowed dramatically. The macro trend for labor participation since 2008 still is down by 1.4%. That translates to approximately 3.9 million people who are excluded from the labor force calculation. " The CEO expanded with the following caveat, “The year to year comparison of workforce participation shows how deep a hole we are in. Until those percentages turn around, the overall recovery will be weak at best. If that is the case, then there is a strong possibility that IT demand will be dampened, and overall IT job market size could fall back to the levels of 2010 and 2011. ”
IT Job market growth with inflation, economic slowing, and major layoffs.
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.
Based on BLS data analyzed by Janco in the first 3 quarters of 2022 an average of 200K IT jobs remained unfilled due to a lack of qualified individuals.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 occurred in December - layoffs have impact on number of unfilled jobs available for IT Professionals. Currently there are approximately 145K unfilled positions.
Labor Participation Rate in the low 60's
Inflation is pushing more people back into the active labor market
Just under 100 million people in the U.S. are not counted in the labor force - see reasons why not working.
The latest data for more read on...
Data points to a material slowing in the hiring of IT Professionals with 9,800 jobs lost in the last 3 months.
Note - data includes the adjustments by the BLS to the initially reported data.
In a continuing survey of CIOs, Janco has found many CIOs are cautious but feel that overall hiring will improve in 2013. The CEO of Janco said, “In telephone interviews in late January of 106 US based CIOs we found that many are looking to a more interesting future with tax increases, unsure economic future, and unstable world political situation. CIOs are closely managing their overall FTE (full time equivalent) headcounts level and adding staff for critical new developments. " He added, “A few CIOs in selected areas like SF Bay Area and Boston are bullish. ” Further he said, “CIOs are looking to add back management levels that were eliminated in the recession. In addition, 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. ”
Health Care vs. Financial Services Job Growth
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. The chart below depicts the total labor market in this sector.
Janco is an international consulting firm that follows issues that concerns CIOs and CFOs and publishes a series of IT and business infrastructure HandiGuides™ and Templates including a Disaster Recovery/Business Continuity Template, Security Template and IT Salary Survey.
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