Over 4 million are employed as IS Pros in the US
Median salaries for IT Pros now $101,323
IT Pros in SMBs had greater percentage increases in compensation than those in larger enterprises
(Park City UT) - Janco reports that 2022 saw an increase of 186,300 new jobs added to the IT job Market. Those new jobs were in addition to the 213,000 jobs created in 2021. This increased demand raised overall salaries for all IT positions by 5.6%, with SMBs seeing an average increase of 7.74% with their median compensation increasing to $100,434 as reported in Janco 2023 IT Salary Survey.
According to the latest BLS data, analyzed by Janco, there are now just over 4 million jobs for IT Professionals in the US. For 29 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 but at a slower pace. Layoffs at big tech companies are not having an adverse on the overall IT employment rate.
Janco has just released its initial forecast for the growth of the IT Job Market in 2023 IT job market growth at 174,000 new jobs. That will be less growth than in 2021 and 2022, but still at record-high levels. To assist in the recruiting process and address this growth, Janco has just released the 2023 editions of two products, 1) the 2023 edition of 324 full IT Job Descriptions and 2) the 2023 edition of the IT Hiring Kit.
IT Job Market Change - August 2024
IT Job Market grew by 4,000 jobs last month - lost 12,700 jobs YTD
Updated with the data from the BLS and Janco Associates Inc as of July 2024
Analysis shows that IT Job Market has shrunk by 48,600 jobs in 2023. In the first eight (8) months of 2024 the IT job market shrank by 12,700 jobs.
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IT Job Market will have modest growth (if any) in CY 2024
There are approximately 145K unemployed IT Professionals. The IT job market shrank by over 48,600 jobs in CY 2023. Overall that is a flattening of the long-term growth rate pattern of the IT job market. Based on our data and forecast models, there will be modest growth (if any) in the IT Job Market of just under 5,000 new jobs added in the calendar year 2024.
Data complied and forecast updated by Janco Associates with data as of August 2024
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 2022. Some roles, especially in telecommunications are being automated and eliminated. Driving this are, CIOs and CFOs who are looking to improve the productivity of IT by automating processes and reporting where possible. In addition, they are focusing on eliminating “non-essential” managers and staff. They will continue to hire coders and developers. The highest demand continues to be for programmers, blockchain processing, and security professionals. Currently, there are over 200K unfilled jobs in the IT job market.”
He said, “Recruiting and staff retention are seen as dual challenges with Inflation being high and the possibility of economic downturn very likely. Work from home is slowly being minimized as companies are requiring employees to be in the office at least 3 to 4 days a week. Companies are forced to hire replacements at salaries that are significantly higher than existing pay rates. In the 2023 salary budgets for IT pros, many CIOs addressed the inflationary pressures faced by employees. We believe that starting salaries for IT Pros in 2023 will be 7-8% salary above existing levels. Salaries at SMBs will increase more as they have traditionally been lower than at larger enterprises. IT Pro’s positions are fungible and will slowly reduce the compensation gap between SMBs and larger enterprises.”
The CEO added, “Morale is a mixed bag in many IT groups. Salary compression has occurred from the earlier hiring efforts with new employees being paid more than existing employees. That has impacted existing employee morale. Another factor for employee morale is the move by companies in all industries and sizes to improve productivity by laying off excess staff.“ Also, “ Companies are looking to increase the span of control (number of people who report to each manager and supervisor) of those in middle and upper management who remain and are focusing on reducing the number of layers of management between the top IT executive and the lowest level of workers.”
Updated with the latest data
Janulaitis said, “Many of the issues faced by the economy are due to supply chain problems. If China opens, overall supply chains should improve but will take several months. That should lessen the recessionary pressures that are driving companies to reduce staff.”
Job Openings for IT Professionals
A major pullback of the number of excess jobs for IT Pros occurred in the 4th quarter of 2022 and continued through last quarter of 2023 - economic slowing and resulting layoffs have impacted on number of unfilled jobs available for IT Professionals. In December the number of unfilled jobs for IT Professionals fell.
In August there were 148K unemployed IT Professionals with an IT Unemployment rate of 6.0%
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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.
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