Janco reports IT Job Market added 21K new IT jobs in August
Growth of IT Job Market still robust – some slowing
Janco forecasts over 200K new IT jobs will be added in CY 2022
Park City, UT – Janco Associates, Inc. – Janco reports that as of August 149,900 new jobs were added to the IT job market. Even with inflation, high energy costs, and the war in Ukraine, IT hiring continues at a record-setting pace. There is some slowing in hiring as fears of a significant downturn or recession are on the horizon. This is despite over 400 companies lowering hiring plans for IT Pro in 2023. For example, Apple has eliminated over 100 contract recruiters as they look to limit hiring.
According to the latest BLS data, analyzed by Janco, there are now 3.97 million jobs for IT Professionals in the US. For 24 months in a row, there has been an increase in the number of jobs added to the IT job market. Janco sees this trend continuing.
Janco has updated its forecast for IT job market growth to 203,900 new jobs to be created in CY 2022. That will be slightly less growth than 2021 but still are record high levels.
IT Job Market Forecast - May 2023
There has been a major shift in the creation of new IT Jobs - economic slowing is the driver.. We estimate that an number of new IT jobs that will be created in 2023 will now be between 60k-70k.
The size of the Data Processing, Hosting, and Related Services market has not grown as fast as the Computer systems design and related services portion of the overall IT Job Market
The CEO of Janco, M. Victor Janulaitis said, “Based on our analysis, the IT job market and opportunities for IT professionals will continue to be positive but not as broad in scope as in the first 6 months of 2022. CIOs are still posturing to hire more staff and expand technologies to address blockchain processing and security applications based on market conditions.”
He said, “Inflation is real and salaries for new hires are higher – we estimate on average 5-6% salary offers above existing pay grades are needed to attract the best IT candidates. Salary compression is occurring with new employees being paid more than existing employees. That does impact existing employee satisfaction and results in higher attrition rates. The challenge CIOs face will be how to keep the balance between the existing budget, providing salary increases to existing employees that address inflation and higher commuting costs, and having sufficient resources available to achieve the enterprise’s technology and bottom line objectives.“
The CEO added, “In our Mid Year 2022 IT Salary Survey, we have found IT salaries for existing IT staff and middle managers increased by just under 3% while new hires were paid 5-6% more than existing staff. In conversation with several CIOs, we learned that starting pay rates for new hires in the 8-10% range were not uncommon. That salary disparity is a driver of dissatisfaction and an increase in attrition rate among existing employees.”
IT Job Market Change - May 2023
IT Job market growth with inflation, economic slowing, and major layoffs.
Janulaitis said, “CIOs and CFOs now are more cautious than they were in the first quarter. CIOs do not have a clear understanding of how a downturn will impact their bottom line. Most still are hiring but at a slower pace. Some companies have stopped hiring and started laying off employees. With all that, the IT job market remains tight with an average of 200,000 IT professionals jobs that are not filled due to a lack of qualified candidates. The number of unfilled IT jobs has peaked from over 260K in April to 210K in July. That should still be enough of a buffer to keep hiring of IT pros on a positive track.”
Job Openings for IT Professionals
Major pull back of the number of excess jobs for IT Pros occurred in the 4th quarter of 2022 - economic slowing and resulting layoffs have impact on number of unfilled jobs available for IT Professionals.
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Janco offers a service for its data which is available via a subscription. The link for a subscription is https://itmanager.substack.com/.
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.