27,800 IT jobs added to the IT job market in since August according to Janco
12,700 IT jobs were added in October as the recovery continues
Park City UT e-janco.com The COVID shutdown in the first quarter cost over 105,000 IT professionals their jobs. Recovery has been slow and Janco’s forecast for total jobs lost by IT Pros will still be 65,100 by the end of the fourth quarter -- even with a robust re-opening. CIOs and CFOs interviewed by Janco are now concerned that a second shutdown will cripple the IT job market further.
The CEO of Janco Associates, Inc., Mr. M. Victor Janulaitis said, “The primary cause of many job losses for IT professionals was centered on the 7.5 million small to mid-sized business impacted by the shutdown. Historical data show that between 60% to 75% of SMBs close their doors for ever after event that causes an extended closure like a disaster. In addition, many chain stores have already announced they will be closing their doors or reducing operations including GNC 1,200 stores, Pier One all locations, Sage all retail locations, Men’s Warehouse/Jos. A Banks 500 stores, New York & Co. all operations; Game Shop reducing operations, Signet Jewelers (Kay) - reducing operations, Stein Mart going out of business, Bed Bath &Beyond - reducing number of stores, AT&T reducing retail operations, Victoria’s Secret over 1,000 retail locations shuttered, and Chico’s moving away from “brick in mortar” to on-line operations with Amazon.” He added,” Those are only few of the companies that no longer have need for as many IT professionals.”
Janulaitis said,” There also has been shrinkage in the number of IT Professionals classified as working for ‘Data Processing, Hosting and Related Services’. Those positions now are only 9% of the total IT Job Market where they were 10% pre-COVID.”
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.
Janulaitis said, “On the bright side, for the third month since the start of pandemic there was a net gain in the number of IT jobs. This despite the fact the BLS revised the number of jobs downward for IT professionals by 2,800 for August and September.” The CEO added, “There was a net loss of jobs in the last 12 months coming from Computer Systems Design / Related Services and Telecommunications 34,9200 and 34,500, respectively.”
The CEO also said, “Spending for IT products and services continues to be halted as companies reevaluate the state of the economy globally as new waves of selected shutdowns occur. With more companies adopting WFH to address “social distancing” and avoiding in-office contacts, fewer companies are taking an aggressive approach to any additional spending for IT products and services. It does not help that the election results point to more shutdowns and Congress not having a relief package in site.”
Unemployment Rate 5.5% for IT Pros
Updated with the latest forecast - Read on...
Impact on the IT Job Market
IT Job Market Flat for FY 2024
The number of IT jobs not filled now is just over over 156K unemployed IT Professionals. The IT job market shrank by over 57,400 jobs in CY 2023. Overall that is a flattening of the long term growth rate pattern of IT job market.
Data complied and forecast updated by Janco Associates with data as of February 2024
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.