Full employment states unemployment rate rises

Full employment states lose ground

Full employment states lose ground as 9 of the 15 states have higher unemployment rates in June than in May.  They are : Iowa, Utah, Kansas, Colorado, Maine, Hawaii, Vermont, New Hampshire, and South Dakota.

States Full Employment Compare May versus June
Full Employment States – June 2016

That is not a good omen for the rest of the year as we move into the months where unemployment tends to rise.

Add on to that some of these states are “contested” in the election that is coming up shortly

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The National Unemployment Rate is pro-ported to go but the participation rate is the lowest it has been in the last 30 years.  Some analysts say the true unemployment rate  is closer to 15% than 5%.

National Unemployment rate
Labor Force Participation Rate

IT Job Market Employment Trends

The IT job market grew last month by 34,200 jobs last month. This more than negates the loss of 19,400 reported for May (adjusted from an orginally reported loss of 27,700 last month). Over the past 12 months 97,200 IT jobs were created according to the lastest BLS data.

Top 10 Wearable Issues

Top 10 Wearable Issues

Top 10 Wearable Issues – Over 33% of all organizations surveyed by Janco have revealed they have more than 5,000 connected devices. Add to that, Cisco predicts there will be more than 600 million wearable devices in use by 2020.

These facts present a set of challenges for CIOs and IT enterprises of all sizes.

  1. Easy physical access to Data
  2. Records management, retention, and destruction
  3. Business continuity is significantly more complex
  4. Photos, Videos and Audio can be captured without anyone knowing it
  5. Instant access to outside Wi-Fi and cellular systems facilitates rapid dissemination
  6. Insecure wireless connectivity
  7. Lack of encryption
  8. Lack of formal policies with limited regulation or compliance –
  9. Software and Firmware version control
  10. Current MDM Policies Don’t Cover Wearables

Read On…

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IT Hiring Rebounds in June, but Overall Growth Remains Slow

IT Hiring Rebounds in June, but Overall Growth Remains Slow

IT hiring rebounds in June, reversing a steep drop in May (much of which was attributed to Verizon strike by 40,000 workers – 17,000 telecommunication) but signaling continued softness in the technology job market as firms cope with uncertainty from the upcoming U.S. presidential election and the United Kingdom’s decision to leave the European Union.

IT hiring rebounds
IT hiring rebounds

U.S. employers added 34,200 information technology jobs in June, following a loss of 19,400 positions in May, according to an analysis of Bureau of Labor Statistics data by consulting firm Janco Associates Inc. The June figure is up significantly from the same month a year ago, when 6,800 jobs were added.

About 46,500 IT jobs have been created year-to-date, down from 69,400 at this time last year. Growth in IT jobs hit a five-year low in April, CIO Journal reported.

Janco projects a net decrease in the size of the IT job market this year. The firm estimates 76,500 jobs will be added at year’s end, compared to 112,500 in 2015.

“At the beginning of the year people were much more optimistic,” said M. Victor Janulaitis, Janco’s CEO. Last month’s uncertainty surrounding the upcoming U.S. presidential candidates and questions over the implications of a Brexit scenario prompted many firms to become more cautious across the board. ” Everyone’s saying we’re really slowing down this summer.”

That means companies may not fill IT roles left open by retiring baby boomers and may cut back on contractors and consultants. Unessential technology upgrades without a clear return-on-investment may be tabled for the time being.

The forecast is not without bright spots. Companies have been hiring application developers and designers, Mr. Janulaitis said, although most have been internal. And a survey from Janco this month found that average compensation for all IT professionals has increased to $82,775 in 2016 from $ 82,246 a year ago.

IT Median Salaries
IT Median Salaries

Janco’s employment findings are based on an analysis of a basket of IT-related jobs data drawn from the Labor Department’s Bureau of Labor Statistics.

The broader economy also rebounded in June, adding a seasonally adjusted 287,000 jobs. That followed a dismal gain of 11,000 jobs in May.

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Top 10 Security Predictions

Top 10 Security Predictions

Top 10 Security Predictions – Many organizations fail to realize the benefits of security information management due to the often exhaustive financial and human resource costs of implementing and maintaining the software. However, Janco’s’ Security Manual Template – the industry standard – provides the infrastructure tools to manage security, make smarter security decisions and respond faster to security incidents and compliance requests within days of implementation.

Top 10 Security Predictions from Janco Associates are:

  1. Over the next several years almost all of vulnerabilities exploited by hackers will continue to be ones known by security and IT professionals for at least one year.

    Top 10 Security Predictions
    Top 10 Security Predictions
  2. Robotics will take over many security operations. China will lead the way with 30-40K students training in universities with this technology. US will lag for several years.
  3. Shadow IT will be responsible for over one third of attacks experienced by enterprises.
  4. The need to prevent data breaches from public clouds will drive many organizations to develop data security governance programs.
  5. Over the long term enterprises engaged in application development will secure applications by adopting application security self-testing, self-diagnosing and self-protection technologies.
  6. Future cloud-based providers will include network firewall, secure web gateway (SWG) and web application firewall (WAF) platforms in their offerings.
  7. Identity as a service (IDaaS) implementations the focus of several new companies.
  8. Use of passwords and tokens in will drop 55%, due to the introduction of bio-metrics.
  9. A majority of IoT device manufacturers will not be able to address threats from weak authentication practices.
  10. More than 25% of identified enterprise attacks will involve IoT.

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Info Tech Executive Salaries have recovered from 2008 downturn

Info Tech Executive Salaries have recovered from 2008 downturn

Info Tech Executives Salaries for most IT executives have recovered from the downturn of 2008.  If you a CSO in a large enterprise then you have seen your salary rebound by 14.56%. This has been drawn for the Info Tech Executive Salaries data base that is maintained by Janco Associates.

More data is available in the full 2016 Mid-Year IT Salary Survey that is published by Janco Associates.

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Jobs where the salaries for IT executive have not recovered are limited to three (3) executive positions in large enterprises.  VP Administration (down 2.25%), VP Consulting Services (down 9.0%), and Director Productions and Data Centers (down 0.75

Info Tech Executive Salaries - Large Enterprises
Info Tech Executive Salaries – Large Enterprises
http://www.e-janco.com/salary.htm
Info Tech Executives – Mid-Size Enterprises

These are findings from the 2016 Mid Year IT Salary Survey.  Other interesting observations for the survey are that salaries for the last 12 months for most IT staff, other than executives have remained flat.

Median compensation for IT Pros
Median compensation for IT Pros

The data shows that CIOs and their bosses value the upper level decision making positions while they view the lower level positions as a focus of cost.

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Other findings from the latest IT Salary Survey are:

  • In 2015 the IT job market grew by 112,000 versus 129,400 in 2014 and 74,900 and 21,800 in 2013 and 2012 respectively according to the Bureau of Labor Statistics (BLS).
  • IT compensation for all IT Professionals has increased by 0.64% in the last 12 months.
  • IT executive compensation across all organizations has shown another increase. The mean compensation for IT executives in large enterprises is now $147,260 (up 1.44%) and $131,384 (up 1.50%) in mid-sized enterprises.
  • Positions in highest demand are all associated with security, training, large data center management, distributed/mobile system project management, quality control, BYOD implementation, capacity planning and service level improvement.
  • Over the long term IT executives have fared better in large companies than mid-sized companies.
  • On shore outsourcing has peaked and companies are looking to bring IT operations back into their direct control and reduce operating costs.
  • Mandated requirements for records management systems and electronic medical records have increased the demand for quality control staff and custodians (librarians) of mechanized records.
  • Companies are continuing to refine the benefits provided to full time IT professionals. Though benefits such as health care are available to 80%, IT professionals are now paying a greater portion of that cost.

State unemployment numbers mask correct unemployment rate

State unemployment numbers mask correct unemployment rate

State unemployment numbers mask correct unemployment rate as they do not adjust for the number of individuals who have dropped out of the labor market.

State unemployment
State unemployment number do not reflect the number of people who have dropped out of the labor market.

In May 2016 there were 8 states with an unemployment rate of over 6% versus 7 in February 2016 with over 6% Unemployment. Alabama and Illinois have unemployment go up in the past 12 months as opposed to the other 4 states where unemployment levels have improved.

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South Dakota and New Hampshire had the lowest jobless rates in May, 2.5 percent and 2.7 percent, respectively. The rate in Arkansas (3.8 percent) set a new series low. Alaska had the highest unemployment rate, 6.7 percent. In total, 16 states had unemployment rates significantly lower than the U.S. figure of 4.7 percent, 15 states and the District of Columbia had higher rates, and 19 states had rates that were not appreciably different from that of the nation.

Job Market grim for Information Technology professionals

 Job Market grim for Information Technology professionals

Job Market grim for Information Technology professionals as it is leading the way to fewer prospects for new jobs being created.  Just last month there were eight (8) states with unemployment rates in excess of 6%.  That along with the loss of 27,700 jobs makes many wonder if we are facing a possibility of a new recession.

US job market grim
8 states have unemployment in excess of 6% and that is with 94 million individuals who have have dropped out of the labor market making the true unemployment number closer to 13% – depression era levels,
 Job Market grim for Information Technology professionals
IT job market grim – Janco may revise its forecast for the IT job market to shrink if this trend continues.

Job Market grim for Information Technology professionals as 2016 fall behind 2015 in creating new IT jobs

IT Job Market growth is 57,300 worse in 2016 than 2015 as of May
If the loss of jobs continues at this rate all of the recovery achieved in the IT job market over the past several quarters could be lost.
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IT Job Market Shrinks

Job Market Shrinks for IT Pros

IT Job market shrinks in May.  Approximately 27,700 jobs disappeared, with most of those jobs being related to telecommunications.

IT job market shrinks
IT jobs disappear – with 37,200 in the Telecommunications field

That along with a comparison with the number of IT jobs created in 2015 paints a fairly bleak picture.

IT job market growth slower than prior year
IT job creation fall behind 2015 levels – 57,300 fewer new jobs this year than last

There is an acceleration in the rate of slowdown in the IT Job Market. If this continues, as we think it will, there is a probability that there could potentially be a net decrease in the size of the IT Job Market in 2016. Janco has already lowered our best case forecast for net new IT jobs for the balance of this year and have reduced our prior forecast of 87,700 to 40,300.

This is the worst employment market in the past 15 years. Given that is the case why are H-1B visas continuing to be issued for IT professionals?

Foreign Assignments

Foreign Assignments Considerations

Foreign Assignments – Taking an overseas assignment can be a great career boost. There are some major issues that you need to consider.

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Taxes

The US is the only country in the world that taxes their citizens on their WORLDWIDE income. So even though you may earn every penny in other country on your local contract, the US wants to tax you for it. Fortunately there is a “foreign earned income tax” exclusion that you can apply for that will prevent the US from taxing you for the first $80,000 but above that value you will be taxed by both countries.

Keep a US address – find someone in your family who you can have all of your mail forwarded to and whose address you can use on your US tax forms.

Foreign Banking

The US requires that if you have a foreign bank account every year you must file a form with the Treasury Department to list all the foreign bank account numbers you own. Foreign branches of banks do not talk to their branches in the US. For all intents and purposes, they are totally different banks. You can wire money back and forth between your accounts (with associated fees), however it is easier to live with the separate accounts.

Moving

Have your movers come and estimate the volume of your household goods and then you get a feel for how much will fit in a new “smaller” place.

If you plan on coming back to the US, might leave any valuable goods (antiques, paintings, etc) with your family. Boats have been known to sink; containers have fallen off ships in bad weather, and while these items are insured, they could be lost forever.

Leave most of your electronics in the US. Your TV, stereo, microwave, washer/dryer, blender, even alarm clock, hair dryers, and telephones will not work on the power in many foreign countries.  The one exception is a DVD player – note your US DVDs will not work on an foreign DVD player as your DVDs are coded for the US.

Your goods will take 6-8 weeks to come from the US by boat – so be sure to negotiate into your contract that they put you into temporary housing or a hotel until your goods arrive and provide you with a car. I

Car and Driving

It is not cost effective to ship a car. Sell your car and buy a new one in your new country.

The US does not use the “international road signs” so you can find these on the Internet and study them before you arrive. Try to get your hands on an foreign countries’ driving manual before you arrive as the rules of the road are different in almost every country.

Bureaucracy

Getting a work permit, temporary resident’s visa, your driver’s license, and local ID in foreign country is a paperwork frenzy. Get as many of your personal documents together and organized up front (birth certificate, passport, immunizations, etc).

Networking

When you arrive in the foreign country typically you know virtually nobody. It is critical that you find a group of people soon after arriving. Type “Americans (country name)” into Goggle and find some local groups. These groups help you to meet other Americans who are in my exact same situation and who have already crossed the hurdles that you are just going over. These clubs often have “Newcomer” events that will welcome you to the area or subgroups (e.g. American Rotary, Mothers of Young Children, Retirees, Working Women’s Group, etc) that will help you almost immediately find other Americans in similar situations to yours.

Paperwork

Have a power of attorney and a will before you leave the US. Have an the attorney look into what could be done to make these documents legally recognizable in the foreign country.

Renting your Home in the US

You should find a fantastic property management company that does background checks (criminal) and credit checks on potential renters. Also, get the highest end rental insurance and fire insurance you can buy with replacement cost adjusted for inflation.

For a more complete presentation of these considerations go to http://goo.gl/8L4ICw.

10 best practices electronic meetings

10 best practices electronic meetings

10 best practices electronic meetings
Travel Off-Site Meeting Policy

10 best practices electronic meetings have been identified by Janco Associates, Inc.  They are:

  1. Have an agenda that is available to all attendees before the meeting
  2. Have a process to validate that the devices in use by users will work with the electronic meeting application
  3. Test the meeting technology with all attendees well in advance of the meeting
  4. Have a specific start time
  5. Be aware of time zones that meeting attendees will be in
  6. Have a dress code including background for meeting attendees to follow
  7. Send electronic invitation which require a confirmation and put the meeting in the electronic calendars of all attendees
  8. Have a common secure location where share documents are available to all attendees
  9. Record the meeting and comments for others to review if they are not able to attend
  10. After the meeting send a summary of the meeting including next steps, tasks assigned, and when the next follow-up meeting will take place.

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CIOs investment in Infrastructure is on the rise

CIOs investment in Infrastructure is on the rise

CIOs investment in infrastructure is going up despite ongoing economic uncertainties.  They are investing in IT to improve operations, reduce costs, and enable strategies. IT budgets, hiring, and salaries are increasing slightly (see http://www.e-janco.com/Salary.htm) and CIOs are cautiously optimistic that this trend will continue into next year.

CIOs five (5) concerns are:

  1. Alignment of IT with the Business
  2. Security and Privacy
  3. Business Agility and Flexibility
  4. Business Productivity
  5. IT Time-to-Market / Speed of Delivery

CIOs five (5) largest IT investments are:

  • Big Data and Business Intelligence
  • Data Center Infrastructure
  • Enterprise Resource Planning
  • Application Software Development
  • Cloud Computing

CIO IT Infrastructure Policy Bundle (more info…) All of the policies below are included as individual MS Word files and a single PDF file. Electronic forms are all individual documents that are easily modifiable

  • Backup and Backup Retention Policy (more info…)
  • Blog and Personal Web Site Policy (more info…) Includes electronic Blog Compliance Agreement Form
  • BYOD Policy Template (more info…) Includes electronic BYOD Access and Use Agreement Form
  • Google Glass Policy Template (more info…) Includes electronic Google Glass Access and Use Agreement Form
  • Incident Communication Plan Policy (more info…) Updated to include social networks as a communication path
  • Internet, e-Mail, Social Networking, Mobile Device, Electronic Communications, and Record Retention Policy (more info…) Includes 5 electronic forms to aid in the quick deployment of this policy
  • Mobile Device Access and Use Policy (more info…)
  • Patch Management Policy (more info…)
  • Outsourcing and Cloud Based File Sharing Policy (more info…)
  • Physical and Virtual Security Policy (more info…)
  • Record Management, Retention, and Destruction Policy (more info…)
  • Sensitive Information Policy (more info…) HIPAA Compliant and includes electronic Sensitive Information Policy Compliance Agreement Form
  • Service Level Agreement (SLA) Policy Template with Metrics (more info…)
  • Social Networking Policy (more info…) Includes electronic form
  • Telecommuting Policy (more info…) Includes 3 electronic forms to help to effectively manage work at home staff
  • Text Messaging Sensitive and Confidential Information (more Info…)
  • Travel and Off-Site Meeting Policy (more info…)
  • IT Infrastructure Electronic Forms (more info…)

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10 best practices to retain millennials

10 best practices retain millennials

10 best practices retain millennials can be applied easily and favorable results will be seen quickly.

10 best practices retain millennials
10 best practices retain millennials
  1. Implement a mentoring programs – utilize social media to communicate frequently followed up with face to face time.
  2. Rotate work assignments to provide millennials with a broader range of exposure to the enterprise what is in store for them in the future
  3. Provide millennials with a flexible feed-back loop process so you know what their state of mind is. Minimize the chances for “unhappy” employees
  4. Give them time to develop their skills and career opportunities
  5. Encourage on-going education but technical and managerial.
  6. Define clear and achievable performance metrics so both you and they know what is expected
  7. Minimize stress and provide training to millennials on how to deal with stress.
  8. Balance work and personal time. Avoid situations where the 50-hour week is the norm
  9. Implement an open door policy and have managers, even the CIO, interact with all levels of employees. Manage by walking around and getting a feel for how everyone is doing.
  10. Provide opportunities for millennials to provide ideas and when one is implemented sound the praises of the employee.

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H-1B program adversely impacts IT pros

H-1B program adversely impacts IT pros

The H-1B program is adversely impacting IT pros and the US job market as a whole.  The idea of the program was to make easier to attract talented individuals to work in the US.  It has now gotten to the point that it is just like manufacturing that the US has lost by encouraging companies to do it for “less”.

Companies like Tata (from India) are hiring workers at low wages from third world countries, moving them to the US so that US workers can train them, and ultimately be displaced via off-shoring or outsourcing.

The latest data from the Department of Labor shows that over 75% off all jobs foreign workers are getting visas for are in what they call the IT occupation.

 

h-1b program IT job families 75% plus of the visa jobs
h-1b program IT job families

Looking at the data, in 2015 only 112,000 new IT jobs were created.  At the same time the over 400,000 visa applications were filed by corporations for foreign workers.  There is something wrong with this picture as all of these jobs are high paying ones and the foreign workers are taking these jobs a wages that are lower than domestic IT workers would be paid.

Growth in IT Job Market – near zero

Growth in IT Job Market – near zero

Growth in IT Job Market has come to a standstill. For the first four month of this year.  Each month this year the IT job market has not grown at all as compared to 2015.

IT job market growth slows to a 5-year low
Growth in IT Job Market

There are some new IT jobs that are continuing to be created.  However the number of this new jobs is small at best.

The CEO of Janco was quoted as saying, “There is an acceleration in the rate of slowdown in the IT Job Market.  If this continues, as we think it will, there is a probability that there could potentially be a net decrease in the size of the IT Job Market in 2016.  We will only be able to get visibility of that when we see one or two months of new data. However, we have already lowered our best case forecast for net new IT jobs for the balance of this year.”   He added, “Many companies are cutting back significantly on contractors and consultants.  That trend will continue until at least the 3rd quarter of this year.”

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Top 10 Technology Travel Tips – International

Top 10 Technology Travel Tips – International

Travel, Electronic, and Off-Site Meeting Policy
Top 10 Travel Tips

Top 10 Technology Travel Tips – When people traveling, especially internationally, not only is technology at risk but also sensitive personal and work information.  Below are 10 tips taken from Janco’s Travel, Electronic, and Off-Site Meeting Policy.

  1. If it’s not necessary, don’t travel with a computer or tablet.
  2. Whenever possible, arrange to use loaner laptops and handheld devices while traveling.
  3. If you are bringing a laptop with you, make sure you have the proper plug adapter.
  4. Install a host-based firewall, and configure it to deny all inbound connections.
  5. Disable file, printer sharing, and Bluetooth. Apply full disk encryption, picking a long, complex password
  6. Update all software immediately before travel.
  7. Always clear out browser cache before you leave.
  8. Backup your computer
  9. If you are bringing private data, not on a computer, copy the data onto an encrypted USB memory device
  10. Change the password for your accounts email, Gmail, Facebook, etc.
    1. Utilize complex passwords – Assume the workstation or medium will be lost or stolen.
    2. Memorize the password, or keep it in a secure location on your person.
    3. Password protect the login, and require the password after screen-saver.
    4. NEVER set browser to remember passwords.

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