IT Hiring Slows as CIOs are Directed to Move Cautiously
CIOs are saying hiring is limited to replacement of critical staff - new positions are almost nonexistent…
IT Hiring Slows as CIOs are Directed to Move Cautiously - The latest BLS data shows a slowing in the rate of job creation in the IT job market. The CEO of Janco Associates, MV Janulaitis said, "According to BLS there were only 5,400 jobs created for IT professionals - down from 9,800 created in January. The impact of "sequester" has been felt by many. At the same time more people continue to leave the job market even as the published unemployment rate falls. "
The CEO added, "When we looked at the number of IT pros employed and compared that with our own independent survey of 97 CIOs in North America and conclude that the hiring has come to a standstill with only 12% of the CIOs that we interviewed are looking to expand the size of their IT departments. We are seeing greater demand for mid-level security and compliance managers to assist with the implementations for more 'web-enabled' applications and security professionals. "
Janco's says, "For the first time since the dot com bust Janco's metrics show that hiring by CIOs is at a standstill - there is a high degree of uncertainty in the economic climate…"
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.
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The CEO said, "Janco continues to be concerned that the data shows the labor market participation rate remains at record low levels. Also with "sequester" there is a possibility that the recovery will falter and job growth could slow. The macro trend for labor participation the lowest since 1979 still is down and the true unemployment rate would be over 11% if those who have dropped out of the labor market. " 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. "
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.
Updated with Latest Data - Includes impact of recovery from reopening
In a continuing survey of CIOs, Janco has found many CIOs have turned to be more cautious in the last month. The CEO of Janco said, "In telephone interviews in late March of 97 US based CIOs we found that many companies are uncertain of which way the economy is going with sequester, tax increases, and unstable world political situation. CIOs continue to closely manage their overall FTE (full time equivalent) head counts level and adding staff for critical new developments. " He added, "The number of CIOs who are bullish has declined. "
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.
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