IT Job Market Improves

IT job market increases significantly with 20,400 jobs added in July

One in five organizations is looking to hire additional IT staff within the next month – IT is not expected to regain all of the jobs lost during the 2007-09 recession until 2013

There was a net increase of 20,400 seasonally adjusted IT jobs in July  according to the latest BLS data. There was an improvement in computer system  design and related services accounted of 10,400 jobs; 7,000 in telecommunications, 1,900 jobs in Data Processing,  hosting and related services; and another 1,100 jobs in other information  services.

The IT job market growth trend for IT Professionals is down, See chart below.

              Hiring Trend Moving Average

At the same time Janco’s CIO Hiring plans look upbeat with CIO looking to replace consultants and contractors with full time employees. There is general consensus that they will be hiring next year at this time.

IT Hiring Trend

The number of new jobs created continues to be lower than the number of jobs needed   for the  US economy to stay even with adult population growth. The Labor Department has reported the economy added added 163,000 in July up from  80,000 in June ( 69,000 in May) . Unemployment is highest in Nevada  and California.     

IT Job Market Employment Trends

For the first time in several months there were gains in the total number of jobs in all sectors of the IT job market. There was a net increase of 20,400 seasonally adjusted IT jobs in June  according to the latest BLS data. There was an improvement in computer system  design and related services accounted of 10,400 jobs; 7,000 in telecommunications, 1,900 jobs in Data Processing,  hosting and related services; and another 1,100 jobs in other information  services.

IT job market improves - hiring up

IT job market improves - hiring up          

Health Care vs. Financial Services Job Growth

Heath Care Job Growth

Employment is on the rise in Healthcare IT and spending will reach $40 billion by the end of this year. Much of that growth will come from spending on electronic health record (EHR) systems, mobile health applications and efforts to comply with new government standards. Boosted by increased spending on healthcare software — which is needed for the rollout of EHR systems — the U.S. healthcare IT market is expected to grow at a rate of about 24% per year from 2012 to 2014, the study said. Spending on healthcare software rose 20.5% in the past year, from $6.8 billion in 2010 to a projected $8.2 billion this year. Recent mergers and acquisitions in the healthcare IT market also point to growing private-sector interest in software, which will see sales grow at rate of more than 30% annually from 2012 to 2014.

Industries and occupations related to health care, personal care and social assistance, and construction are projected to have the fastest job growth from now until 2020. Total employment is projected to grow by 14.3 percent over the decade, resulting in 20.5 million new jobs. Despite rapid projected growth, construction is not expected to regain all of the jobs lost during the 2009-12 recession. The bad news is that the number of individuals dropping out of the job market continues to increase and the Labor Participation Percentage continues to fall.

Labor Participation Pct

 

Author: CIO

Victor Janulaitis is the CEO of Janco Associates. He has been a professor at the USC Graduate School of Business and has been a guest lecturer at UCLA and a Graduate School at Harvard University.