70,900 jobs eliminated from the IT Job Market
In 2024 22,400 IT Jobs were lost following a loss 48,600 IT Jobs in 2023
Over 70K IT job scrubbed from the IT Job Market in the past 24 months
Park City - UT - e-janco.com - Janco reports that 2024 was not a great year for IT job growth but it still was better than 2023. For the second year in a row, the IT job market has shrunk.
The CEO of Janco, M. Victor Janulaitis said, “Post-Pandemic the IT job market was one of the areas that recovered quickly. Jobs were filled at a record pace and those that could not be filled were targeted for automation and the application of AI, i.e. data entry, reporting, and service desk processing. In 2023 and 2024 there was a major re-alignment in the way things are done within the IT function. With all the new advances in technology, many jobs have been eliminated or automated out of existence. No longer are there scores of monitors of status, KPI metrics, and SLAs as many of those processes are automatically checked and when exceptions are noted, emails or text alerts are sent out to address the issue. “
The CEO added, “Our 2025 IT Survey which we have been doing for over 40 years shows that the mean compensation for IT Professionals now is over $104,517. In 2015 the mean compensation was $81,583. Inflation is part of the equation, but the elimination of many entry-level positions, clerical roles, and administrative reporting roles has concentrated IT Professionals in positions that pay more. No longer are IT organizations populated with secretaries, data-entry operators, administrative monitoring clerks, and a massive help desk staff. Rather the new roles are data architect, AI developer, e-commerce specialist, and similar roles.”
Updated with the latest data
Janulatis added, ”The BLS just reported that the IT Job Market shrank by 22,300 in the CY 2024. The data showed that 5,700 jobs were lost in December on top of a reduction in the number of jobs created in the prior two months of 6,600 jobs.”
IT Job Market Change - December 2024
IT Job Market lost 5,700 jobs last month in addition to the 6,600 BLS adjusted down in the prior two months
Updated with the data from the BLS and Janco Associates Inc as of January 2025. Analysis shows that IT Job Market has shrunk by 48,600 jobs in 2023 and 22,300 in CY 2024.
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The CEO stated “From our interviews with over 86 CFOs and CIOs, we found that the election results were viewed as positive from their view. Many of them felt the business climate was positioned well for economic expansion with the resultant expansion of IT. But with the recent fires on the West Coast, it is not clear that will be the case. Many of the executives felt there was a good chance there would be an economic turndown in the second or third quarter of 2025. ”
Also, he said, “The unemployment rate for IT Professionals is 3.9% which is lower than the overall national unemployment rate of 4.1%. Over 78,000 IT Pros were hired last month cutting into the backlog of unemployed IT Pros. Our analysis predicts the same will be the case for the next several months.”
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 98,000 unemployed IT Professionals. Read on...
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Janulaitis stated, “From our interviews, we have found hiring and job growth continues to be in 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 continues to halt 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.“
Janco’s current forecast is that the IT job market will shrink for the next few months. The current forecast is that fewer than 1,000 new jobs will be added in December. That will not be enough to absorb all the unemployed IT Pros. 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.
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