IT job market growth slows

IT job market growth slows

YTD IT job market growth March 2016

IT job market growth slows even more in the past month.  Looking at
BLS’s data and the analysis done by Janco Associates it is very clear that job market picture for IT professionals is not as bright as it was last year.

In the first quarter of 2016 the total number of new IT jobs created was only 19,000 versus 33,900 in the first quarter of last year.  This is on a base of 3.3 million jobs.

When you analyze the data it becomes very clear that the IT job market is not growing as fast as it was last year.  In our interviews we discovered several causes:

Long term IT job market growth trendPolitical instability both domestically and internationally – This causes enterprises to hold off on investments.

Focus on short term profitability – Investments like those with IT tend to have a much longer break-even point even if the ROI is better.  With time there is risk and many C-level executives are paid on how well they are doing in the current period.

Outsourcing and H-1B workers lower demand for domestic IT pros – Both of those are like have a “guest worker” program.  Costs tend to be lower and there is less of a requirement for internal IT staff.

Domestic IT pros do not have current hot skills – Skills that are in the greatest demand are too new to be in universities and technical schools.  Potential employees know all about social media and smart phones.  They do not have a clue or desire to  “program” them.  Foreign students arrive with those skills.

Now those are not the only factors, but they are key to addressing the issue of how do we create more IT jobs for domestic employees.

Both in an individual’s personal career planning and an enterprise’s staffing, promotion and compensation it is important to have benchmarks on the levels that individuals are at.  To that end, one of the best objective ways to meet this goal is to have formal job descriptions and clear paths for promotion and compensation.

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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.