IT Job Market Growth Slows in August

IT Pros face a mixed job market with a net gain of only 12,400 IT jobs in August – versus the 13,600 jobs added in July and 9,600 in June. This shows a slight positive trend – 96 CIOs interviewed feel that hiring will increase significantly six to nine months from now

The market for IT Professionals continues to show a slight improvement in hiring.  There was a net increase of 12,400 seasonally adjusted IT jobs in August according to the latest BLS data. There was an improvement in computer system design and related services accounted of 14,700 jobs and another 3,100 jobs in other information services which was offset by a loss of 4,700 jobs in telecommunications and 700 jobs in Data Processing, hosting and related services.

The entire job market in the US did increased by 96,000 jobs in August, but troubling was the fall in the labor market participation rate which fell another .2% to 63.5% with 368,000 dropping out of the labor force. Victor Janulaitis. The CEO of Janco Associates said, “The year to year comparison of workforce participation shows how deep a hole we are in.  Until those percentages turn around there will be little hope for a strong recovery.”

IT Job Market Trend Moving Average Workforce Participation Percentage

Author: Victor Janulaitis

M. Victor Janulaitis is the CEO of Janco Associates. He has taught at the USC Graduate School of Business, been a guest lecturer at the UCLA’s Anderson School of Business, a Graduate School at Harvard University, and several other universities in various programs.

One thought on “IT Job Market Growth Slows in August”

  1. If the workforce participation rate was the same today as it was in January 2008 then the unemployment rate would be over 11%.

    The fact that more people are leaving the labor market than jobs are being created is strong negative on this economy.

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