Recession Hit IT Pros
IT Unemployment Rate is 5.6% with 145,000 unemployed IT Pros
IT Pros is the first major job group facing a recessionary hiring slowdown
Park City - UT - e-janco.com - Janco reports the overall unemployment rate for IT pros in July remained higher than the US national unemployment rate. High unemployment is defined as being 5.5% or greater. The unemployment rate for IT Pros fell slightly from 5.9% to 5.6% but remains greater than the national unemployment rates for the same period. Janco will be publishing its full set of findings on Substack (https://itmanager.substack.com/).
The CEO of Janco, M. Victor Janulaitis said, “Unemployed IT Pros are having more difficulties finding positions at their prior compensation levels in most regions of the country. Currently, it can take several months for unemployed IT Pros to complete the interview process and receive a job offer. This is driven by CIOs and CEOs who have pulled back many open requisitions and halted and/or slowed non-critical IT Initiatives. There are some opportunities for IT Pros who have experience or skills with “new” technologies like AI and Machine Learning (ML).”
The IT Unemployment rate in the past several months has exceeded the US national unemployment rate - That is a bad omen for the IT Job Market in general. This impact can be seen in both the computer hardware and software markets in falling sales. There currently are over 148,000 unemployed IT Professionals. Read on...
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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 has halted the growth of entry-level positions within IT, especially in customer service, internal reporting, telecommunications, and hosting automation. C-level executives continue to be focused on eliminating “non-essential” managers, staff, and services. Experienced coders and developers have limited opportunities with legacy applications. The highest demand continues to be for AI, security professionals, new technology programmers, and Internet processing IT Pros.“
Unemployment Rate 6.0% - Higher than the National Unemployment Rate
Updated with the latest forecast - Read on...
Impact on the IT Job Market
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. Large high-tech firms continue to lay off to have better bottom lines. Included in that group of companies that have recently announced new layoffs are Intel, Microsoft, and Google.”
Janco’s current forecast is that the IT job market may grow slightly in CY 2024. The current forecast is that 5,000 jobs will be added to the IT Job Market in the calendar year 2024. That will not be enough to absorb all the unemployed IT Pros.
Also, he said, “The unemployment rate for IT Professionals is 5.6% with little to show this will improve in the the short term. 145,000 IT Pros are currently unemployed. Most individuals with limited skills in the new technologies. It has been reported there are many IT Pros who are looking at online courses to learn about AI and how to improve their skill sets. At the same time, BLS data shows that around 81,000 IT pros were hired but that 147,000 were looking for work in June. Our analysis predicts the same will be the case for July and August.”
IT Job Market - September 2024 Forecast for FY 2024
There has been a major shift in the creation of new IT Jobs - AI and economic slowing are the drivers.
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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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The CEO added, “We reviewed data on recent graduates from universities and found that most Masters and Doctoral degrees we for non-US nationals. This is a problem as there is a need to educate our existing (US nationals) IT pros on the new technologies that are being developed and deployed. IT pros who want to get these new skills, are starting to look at technical trade schools and certification programs to acquire the new skills they need.”
Janco’s analysis of the IT job market is based on current BLS data, hiring trends monitored by Janco, budgets for IT initiatives in companies Janco monitors, and its proprietary forecasting model.
In the last three (3) month the IT Job market shrank by 9,100 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. Subscribe to our Newsletter to get this information delivered to your inbox as soon as it is released. SUBSCRIBE
