IT Job Market Shows Few Signs of Growth
The latest BLS unemployment rate has gone down, but so has the job participation rate which fell to 62.8%. In addition the data paints a bleak picture for the IT job market. 3.200 IT jobs were added in November and in the last 12 months 74,900 jobs were created. The CEO of Janco Associates, Mr. Victor Janulaitis said, “The employment data is not as good as the fall in the national unemployment rate suggests and it seems to be worse for IT Pros. If you factor in the participation rate, the true national unemployment rate would be around 12%. Janulaitis added, “That data is causing many companies to consider wither they should expand IT staffs. Based recent interviews of 102 CIOs in the last two weeks, we see that CIOs have become more cautious as have their companies. Janulaitis said, “Add to the employment data the upcoming January 1st sequester cuts and the uncertainties caused by the status of the recovery it is easy to understand the reasons why prospects for an improved job market are not great.”
The three month moving average shows a continuing downtrend in the number of jobs added. From a review of the latest BLS data, Janco has found that there was a net increase of 15,900 jobs in the last three months.
The labor market participation rate fell back to a 30 year low of 62.8%. There are 3,300,000 fewer individuals working than in 2007. The CEO said, “The over-all labor participation rate continues to be lower this year than and other prior year. This alone will make it a very difficult process and does not bode well for IT expansion and hiring.
Health Care vs. Financial Services Job Growth
The health care job market continues to be a bright spot on the overall US labor market and is one area where IT Pros can go with the flow and find job opportunities. The implementation of Electronic Patient Records is one of the driving forces in the increased opportunities in this area. The chart below depicts the total labor market in this sector.
Janco is an international consulting firm that follows issues that concerns CIOs and CFOs and publishes a series of IT and business infrastructure HandiGuides® and Templates including a Disaster Recovery/Business Continuity Template, Security Template and IT Salary Survey.