Prospects for IT Pros job market growth are not bright
IT job market growth continues to be lethargic as only 5,200 new jobs were created in October
Park City - UT - e-janco.com - Prospects for IT Pros job market growth are not bright - Janco’s analysis of the latest BLS data shows that the rate of increase of new IT job creation continues to fall behind 2015's rate. The CEO of Janco Associates, Inc., Mr. M. Victor Janulaitis said, “Last year at this time 114,000 new IT jobs were created. This year, only a little more than one half (53% - 66,600 jobs) of that number of new IT jobs were created." The CEO added, "Telecommunication job growth continues to be slow and still has not recovered from the Verizon strike earlier in the year. Where the Verizon strike was about limiting shipping jobs overseas it did not cover companies that continue to outsource telecommunication jobs."
Janco interviewed over 126 CIOs in the last several weeks as part of its planning for the 2017 IT Salary Survey ( https://e-janco.com/salary.htm ). CIOs are less optimistic this year as at the same time last year. A preliminary hiring forecast by job levels within the IT function shows that long term hiring plans for both IT Staff and ‘contractors/consultants’ are down to flat.”
The CEO of Janco, M.V. Janulaitis said, "The trend in the creation of new IT jobs Janco's continues to below last year's. However, there was a significant rebound from the prior months IT job market growth's moving average to a 0.44% from a negative 0.51% growth rate (a +0.95% favorable move). "
Janco interviewed over 75 CIOs in the last several weeks as part of its semi-annual salary survey ( https://e-janco.com/salary.htm ) data collection process. CIOs are not as optimistic this year as at the same time last year. A preliminary hiring forecast by job levels within the IT function shows that long term hiring plans for both IT Staff and "contractors/consultants" is flat.
The CEO of Janco, said, “Janco forecasts the growth of IT jobs in 2016 to be at the same level as in 2013. As we all know, that was not a very good year." He added, "Drivers of this slowing are not just economic factors. Companies just are not hiring and until there is a clear picture what the impacts of the major market trends like the implementation of the Paris green initiative, brexit, immigration policies and implementation both overseas and in the US, as well as the uncertainties caused by the Middle East."
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.
The CEO added, “In reviewing the last 24 months of data on new IT job creation, it is very clear that there is a downward bias in the number of new jobs created.” He added, “In direct interviews with 76 CIOs and CFOs we find that they have budgeted for slower growth in 2017. Few of these C-level executives are comfortable with the overall direction of the economy and prospects for new IT jobs. This also is reflected in acquisitions for new equipment and major application developments and implementations. Many of these executives are hedging their bets and forecasting flat to lower budgets for the new year. A common thread we heard that it will be easier to come back and get more monies than to have to cut spending after the new year starts.”
The CEO also said, “On the plus side, many CFOs are not completely adverse incremental spending for IT related activities that have operational support and have a good ROI. We have found no IT initiatives that are being approved to upgrade technology for the sake of IT’s desire to have the latest new thing.”
Janco is an international consulting firm that follows issues that concern CIOs and CFOs. The firm publishes a series of IT and business Infrastructure HandiGuides® and Templates including IT Infrastructure Policies and Procedures, Disaster Recovery/Business Continuity Template, Security Template, IT Job Descriptions, and its semi-annual IT Salary Survey.