IT Jobs Market Goes Flat
June 17, 2013 Jenny Thomas
There’s no sugar coating this one. The IT jobs market has hit the skids. At least that is what the latest report from Janco Associates, whose analysts keep an eye on IT market trends, is saying.
“Based on our interviews with over 90 CIOs in the last 30 days, we concluded that CIOs are not in a great hurry to hire new staff,” said Victor Janulaitis, CEO of Janco. “In addition, a number of CIOs do not see any real push to expand staffing over the next 12 months.”
This comes on the heels of the latest jobs report from the Bureau of Labor Statistics (BLS) data. Although the BLS found 175,000 net new workers were added in May, Janulaitis said the data shows a continued slowing in the rate of job creation for IT jobs.
Janco reports there was a net increase of 7,900 new jobs in the IT market in May. Not bad until you take a look back and realize we are on a downward spiral.
The year started off with an IT jobs explosion in North America with 9,800 new jobs created for IT professionals in January. By March, job creation was beginning to slow with 5,700 new jobs in February, but there were high hopes for a rebound. Alas, by April we were reporting optimism had turned to caution as the number of new jobs dropped a smidgen to 5,400 jobs created for IT professionals in March. April’s numbers continued that slowing trend to a reported 4,600 new jobs added.
So although the number of new jobs that came available in May is an improvement over previous months, the three-month moving average for IT job market growth trend for IT professionals is basically flat.
There are a few bright spots, according to the Janco report. The month of May saw improvement in computer systems design and related services of 6,000 jobs (versus 4,700 in April); Telecommunications gained 2,900 jobs (versus 1,000 in April); and other information services gained 2,600 jobs (versus 1,300 in April). The loser was data processing and hosting related services, which shed 400 jobs (versus gaining 200 jobs in April).
Janco cites waning confidence amongst the CIOs they interviewed as main factor in the decreasing number of new IT jobs. “Janco’s CIO hiring plan forecast looks mixed in the short term, with CIOs becoming more cautious in their hiring as the recovery stalls and taxes increase,” Janulaitis said.
Of the interviewed CIOs, none in the categories of executive management or senior management reported having plans to start hiring in the next six months, and only 1.1 percent of the middle management staff interviewed said they might be hiring in that timeframe.
Other than the small gain in computer systems design and related services, the healthcare industry is a spot where job opportunities are can still be found, which Janco again attributes to implementation of electronic patient records.
The recent BLS report also revealed a minuscule change of one-tenth of a percent to the unemployment rate, which is currently 7.6 percent. Janco also follows the overall labor market participation rate, which remains at a record low of 63.4 percent according to Janco’s figures. Janco also reports there are 3 million fewer individuals working than in 2007.
So it’s not just the IT industry that’s been hit hard, if that makes you feel any better?