IT Hiring continues to slow with no recovery in sight
IT job market monthly growth has trended down for the three months. Economic picture is uncertain and CIOs are again controlling both spending and hiring.
IT Hiring continues to slow with no recovery in sight - The latest BLS data shows a slight increase in the number of new IT Jobs - 2,500 jobs added in September. The CEO of Janco Associates, Mr. Victor Janulaitis said, "Based recent interviews of 94 CIOs in the last 30 days, we concluded that CIOs are again in a mode of controlling spending. In addition, as part of the 2014 budgeting process they are 'constrained' in the number of initiatives that they can plan for in the coming year. There is significant uncertainty in which way the economy is going. " In addition Janulaitis says, "Over two thirds of the CIOs interviewed say that the network infrastructure, which many have not been able to update because of budget limitations, they have in place is making it more difficult to implement new technologies without significantly increase costs. " He added, "…they all need larger budgets and staff to deal with this. "
In the last three (3) month the IT Job market grown by 21,500. 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.
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. In our opinion, the IT Job Market is currently at no growth!
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. In 2023 the number of unfilled jobs has fallen to around 100K.
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.
The three month moving average points to a worsening of the hiring environment. From a review of the latest BLS data, Janco has found that there was a net increase of only 2,500 jobs in September - another slowing in IT hiring. There was an improvement in computer systems design and related services of 4,500 jobs (versus 2,400 added in August); data processing and hosting related services gained 200 jobs (versus 100 jobs lost in August); Telecommunications lost 2,700 jobs (and 3,200 in July); and other information services gained 500 jobs (versus 2,000 IT jobs added in August).
The labor market participation rate remained at a 30 year low of 63.2%. There are 3,200,000 fewer individuals working than in 2007. The CEO said, "The over-all labor participation rate continues to be lower this year than and other prior year. This alone will make it a very difficult process and does not bode well for IT expansion and hiring.
Labor Participation Rate in the low 60's
Inflation is pushing more people back into the active labor market
99.2 million people in the U.S. are not counted in the labor force - see reasons why not working.
IT Hiring Slows
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.
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.