Number of unemployed IT Pros fell to 96,000 versus 121,000 last month
Unemployment rate for IT Pros improves to 3.6% versus 4.3% last month
Current forecast is that the IT job market may grow slightly in CY 2024
Park City - UT - e-janco.com - Janco reports the overall unemployment rate for IT pros in February improved to 3.6% from 4.3% in February. In Q1 of 2024 the IT job market grew by 2,800 versus a loss of 1,500 jobs in Q1 of 2023. This data implies hiring IT Pros could be better in 2024 than 2023 which saw the IT job market shrink by 48,600 jobs.
Latest YTD IT job market data - IT job Market Growth in first nine months of 2024 under performed the same period in 2023. Subscribe to our Newsletter to get this information delivered to your inbox as soon as it is released. SUBSCRIBE
Janco's current forecast is that the IT job market may grow slightly in CY 2024. This is based on current BLS data, hiring trends monitored by Janco, budgets for IT initiatives in companies Janco monitors, and its proprietary forecasting model.
IT Job Market - November 2024 Forecast for the CY 2024
BLS makes major adjustments to the job market data showing an average decrease in the number of jobs for IT pros.
There has been a major shift in the creation of new IT Jobs - AI and economic slowing are the drivers.
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CIOs and CFOs have stopped hiring IT Pros except for required replacements as a result the rate of hiring IT pros plummets.
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Change In IT Job Market Size - October 2024
7,300 IT Jobs have been added in the last 12 months while 21,900 jobs were removed in the last 3 months.
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The CEO of Janco, M. Victor Janulaitis said, “The unemployment rate for IT Professionals improved to 3.6% from 4.3% in February. The number of unemployed IT Pros fell to 96,000 from 121,000. Many of the IT pros that were unemployed in the last 3 months found jobs. The number of unfilled positions is about equal to the number of unemployed IT Pros. There still is a skills miss match as positions continue to go unfilled. IT Pros with AI skills and experience remain in high demand."
The CEO added, “CIOs for large enterprises are looking for staff with experience with Artificial Intelligence (AI), Large Language Models (LLM), and Machine Learning (ML). Salaries for those professionals are well into the low six figures. Salaries for management positions with AI skills have moved higher and are in the $155K to $260K range. Experienced managers and developers in demand are getting offers in the $135K to $185K range. “
Janulaitis stated, “From our interviews, we have found that most of the hiring and job growth is small to mid-sized enterprises. Many of the larger firms continue to be focused on improvements in productivity and replacing lower-level skills with AI applications. AI is slowing the growth of entry-level positions within IT, especially in customer service, internal reporting, telecommunications, and hosting automation. C-level executives are focusing on eliminating “non-essential” managers, staff, and services. Experienced coders and developers still have limited opportunities. The highest demand continues to be for AI, security professionals, new technology programmers, and Internet processing IT Pros.“
The CEO added, “According to the latest BLS data analyzed, there are now approximately 4.18 million jobs for IT Professionals in the US. Layoffs at big tech companies continued to hurt overall IT hiring. In the Q1 of 2024 layoffs occurred at SAP, IBM, CISCO, Dell, Xerox, PayPal, Microsoft, Apple, Amazon, and eBay to mention a few. Troubling economic conditions are still there even with the positive jobs data from the BLS. IT will continue to be a target for productivity improvements as it is a target with mean compensation of $100K for IT Pros.”
The BLS adjusted the number of IT jobs initially reported for January and February. The net result was that last month they reported the net number of job created YTD was 2,400. After the adjustments and the new jobs created the YTD number of jobs created was 2,800. A net increase of 400 jobs. Adjustments of this type are consistently occurring with the BLS data.
BLS IT Job Market Size Adjustments - Prior Two Months
BLS reduced the number of jobs for IT Pros by 17,900 jobs for the prior two months - Note last month the BLS had adjusted the same number by an additional 3,000 for a total adjustment of 20,900 - that means the current month reported IT job market growth is overstated.
The adjustments reported by the BLS make Q1 look better when comparing 2024 to 2023.
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