New IT Jobs 2017

New IT Jobs 2017 as the economy improves

New IT jobs 2017 will be driven by an improved manufacturing job market.  As of March 2017, Janco forecast that there will be a total of over 125,000 new IT jobs created.

New IT Jobs 2017
IT Job Market growth forecast from Janco Associates

Janco’s forecast is based on interviews with over 100 CIO, CFO, and HR professionals in the IT sector of the economy.

Close to 12,000 new jobs were created in the first two months of 2017.  With the model dreated by Janco, the firm believes that and additional 113K new jobs will be created in the balance of the year.

On a monthly basis Janco updates it model, forecast, an projections on its main web site at the page titled IT Job Market.

Factors driving the IT job  market in 2017 will be:

  1. The job market will be in favor of the IT professional job seaker
  2. IT will pay IT professionals to swith companies this year
  3. IT professionals will and should ask for pay raises this year
  4. There will be a labor shortage of IT professionals who are social media , programmers, security, and networking experts.
  5. More IT pros will become freelancers and contractors who prefer to telecommute and set their own hours.
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Number of employed rises

Number of employed rises by over 1/2 of million individuals

The initially reported number of employed individuals rises by almost 300,000 in February. At the same time, there are now over 650,000 newly employed individuals since the election.

Number of new job increases by almost 650,000 in the three months since the election

When the data is analyzed over a long term the trend recent trend does not stand out as much.

However all of the indicators are that this is the start of an upward progression in the number of individuals employed.  This is in line with the other data that we have analyzed.

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In today’s economy, nearly every organization faces pressure to reduce waste, run at peak efficiency and “do more with less”.  While the economy has shown signs of improvement and the unemployment rate has dropped modestly, organizations are still extremely cautious when it comes to hiring. When it is necessary to hire, it is critical to make every hire count. There is little room for error. It is crucial for senior-level leadership, human resources and hiring managers to all be on the same page and do the right thing.
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IT Job Market to expand

IT Job Market to expand as CIO and CFO confidence is high

Year to year comparisons show IT Jobs increased at double the rate of 2017 – Janco’s forecast of 136,500 new IT jobs stays firm

Information Technology job market spiked up with double the number new jobs in January of this year versus January of last year.  The CEO of Janco Associates said, “This increased demand for Information Technology professions remains firm with more hiring on tap for at least the next several months.  From our conversations with many CIOs, CFOs, and CEOs we feel this is the start of a boom in demand for IT professionals. Janco’s forecast of 136,500 new Information Technology jobs for 2017 is on track with 11,800 new jobs added in January. ”

Projected IT job market growth
Janco forecasts that over 124,700 new Information Technology Jobs will be added in the remaining 11 months of 2017
YTD IT Job Market growth
January 2017 had double he number of Information Technology jobs created than January 2016
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CIO Tenure Up

CIO Tenure up to 4 years 5 months

CIO tenure moves up as more CIOs are staying in their jobs.  However that is about to change as the “baby-boomers” will begin to retire over the next several quarters. This data is according to Janco’s 2017 IT Salary Survey.

Read on…

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IT Job Market Poor

IT Job Market poor and is trending down

IT Job Market poor
IT Job Market growth poor – trending down

IT job market poor as growth continues to trend down.  This year, only a little more than one half  (53% – 66,600 jobs) of that number of new IT jobs were created. Telecommunication job growth continues to be slow and still has not recovered from the Verizon strike earlier in the year. Where the Verizon strike was about limiting shipping jobs overseas it did not cover companies that continue to outsource telecommunication jobs.

Year to date there are 47,400 fewer new jobs in 2016 than in 2015.  The forecast for all of 2016 is only 75,600  new jobs will be created for the year versus 129,400 in 2014 and 112,500 in 2015.

That is not a good sign for IT Pros who are looking to advance and for overall compensation for IT professionals.

IT Median Salaries 2015 vs. 2016

Historic versus current salaries IT Professionals

In the process of capturing the data for Janco’s 2017 IT salary survey to be released in January, the trend for IT salaries remaining flat seems to be continuing.

You can get a free copy of the full survey if you provide 10 valid data points and use a corporate e-mail address. Free e-mail accounts like gmail or yahoo do not qualify as we have no way to verify the accuracy of the data provided.
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State Unemployment Rates – September 2016

State Unemployment Rates September 2016 shows a mixed picture of the US Job Market

State Unemployment Rates –  The September 2016 data shows a mixed picture with five (5) states that have unemployment levels over 6%.  In addition 3 of those states have a rate that is higher this September versus September of last year.  Those stages are Alaska (6.9% versus 6.6%); Oklahoma (6.7% versus 6.5%); and, Minnesota (6.4% versus 6.0%).

State Unemployment Rates over 6% - September 2016
State Unemployment – September 2016

On the plus side – States with the Lowest Unemployment — Full Employment States

Several states have very low unemployment rates.   In July there were 13 states that we considered high unemployment states in August that picture has changed and now there are only 12 full employment states.

Of the 12 full employment in September four (4) had higher unemployment rates that the same month last year: Nevada, New York, Rhode Island, and South Carolina.

Full Employment States - September 2016
Full Employment States – September 2016

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What does all this mean? First, the data shows that the recovery is tepid at best for most of the individual states.  Second, the recovery is spotty in most of the rest of the country except for a few bright spots like New York. In New York,  the unemployment rate has fallen significantly from the depths of the recession.

 

eReader versions of the DR Plan and IT Job Descriptions

eReader version of DR/BC Plan and IT Job Descriptions – 273 jobs

eReader version of DR Plan and IT Job Descriptions have just been released by Janco.  Both of these offering now can be put in an enterprise’s catalog of electronic documents which can be shared across the network.

eReader books by Janco
eReader books by Janco

The .epub version can be read by most (if not all mobile devices) including iPad, Surface, generic tablets, SmartPhones, and computer desktops.  With this step forward a great collaboration tool is now in the hands of individuals who can review, write notes on, share, and utilize as a handy set of reference tools.

The eReader version are fully indexed, have a hot link table of contents and meet industry standards for mobility.

Over the course of the next several months Janco will be adding .ePub options to most of its product line.  Products that are next in line for this include.

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10 findings on highly paid CIOs a

10 facts on highly paid CIOs

The 36 highly paid CIOs have average base salary is $510,000 with total average compensation of $3.6 million.

Janco has just updated its list of highly paid CIOs for the last year. The data is from public sources including SEC fillings.  The data shows that this group of individuals is not only very diverse but also completely integrated in the executive management planning and operational teams.

Interesting findings include:

  1. One quarter of this group of CIOs are women.  That is up from less than 10% in 1999.
  2. Just under 1 in five are minorities.  This group of CIO is racially diverse and are all well educated
  3. The median base salary $700K while the average base salary is $510K/
  4. The median total compensation $3.3 million and average total compensation is $3.6 million.
  5. All of the CIOs make most of their total compensation from performance bonuses and company stock.
  6. The average tenure is well over 60 months and these individuals have the probability of retiring from these jobs versus being terminated or leaving for greener pastures.
  7. All of the positions are Vice Presidents and most are Executive Vice Presidents. All have either CIO or CTO in their official titles.
  8. Over 60% have been in IT most of their careers. and have advanced to this position.
  9. Over 40% have operational responsibility for areas beyond IT and technology.  Technology is integral to the day-to-day operations
  10. All are integrated into the executive and operational management of the enterprises they are in. Typically IT is not in a “silo” isolated from the rest of the company.
toppaidcios-36
Highly paid CIOs – Public Companies

Janco and eJobDescription.com has conducted salary surveys of the IT Job market since 1989. The data from this survey has been published in the Computer Industry Almanac, the Wall Street Journal, the New York Times, eWeek, and many other business and industry publications. In addition over the years it has been featured on CNN, the Wall Street Journal, and several national and international media outlets.

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Labor Force Participation rate not very promising

Labor Force Participation shows that over 95 million are not in the labor force

Labor Force Participation - 10 year history
Labor Force Participation – 10 year history

The labor force participation rate is the percentage of the civilian non-institutional population 16 years and older that is working or actively looking for work. Since 2008 the participation rate has plummeted. Some of the drivers of that fall are

  • Baby Boomers – The movement of the baby-boom population into age groups that generally exhibit low participation.
  • Teenagers – Teenagers experienced the largest drop in participation, which coincided with a rise in their school enrollment rate.
  • Young Adults – Young adults 20 to 24 years also showed a decline in labor force participation, but the decrease was not as steep as that for teenagers.
  • Working Age Women – The labor force participation rate of women 25 to 54 years also fell, with the decrease more pronounced for women who did not attend college.
  • Working Age Men – The labor force participation rate of men 25 to 54 years continued its long-term decline. As in the past, the decrease in participation among men with less education was greater than that of men with more education.

On the plus side, labor force participation rates of men and women 55 years and older rose from 2000 to 2009 and has subsequently leveled off.

IT Job Market and US National Employment Data – On a monthly basis – typically on the first Friday of the month – Janco publishes an analysis of the IT Job Market utilizing the BLS labor data and it proprietary data. See the latest press clipping go to Janco’s Press Clippings and eJobDescription.com.

The salary survey is updated twice a year; once in January and then again in July. Janco and eJobDescription.com not only look at base salaries, they also report on total compensation.

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State Unemployment – July 2016 – raises question on BLS data

State Unemployment – July 2016 – raises question on BLS data

State Unemployment – July 2016 – raises question on BLS data – The National unemployment data is supposed to provide a measure of the health of the over-all labor market.   A more granular metric is one that considers local condition – i.e. state and local unemployment. However most of this data is constantly reworked and adjusted.  So there is some question as to the value that this information provides over the short term.

High unemployment states June and July 2016

The work force participation percentage of all employees (male and female) is at 62.8% – still one of the lowest levels in 38 years. There still are just 94,333,000 people who are not in the labor force.  When this data is added to the equation some serious questions are raised.

Work Force Participation

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In July 2016 there were 6 states with an unemployment rate of over 6% versus 8 in June 2016 with over 6% Unemployment. Of the high unemployment states, Nevada has been in a high unemployment state for the past 8 years..

High unemployment states July 2016

States with the Lowest Unemployment — Full Employment States

Several states have very low unemployment rates.   In June there were 15 states that we considered high unemployment states. Adjustments were made to the number so that last month there were 13.

Full employment states July 2016

Of the 13 full employment nine states had higher unemployment rates in July than in June: Massachusetts, Arkansas, Minnesota, Utah, Idaho, Hawaii, Nebraska, and South Dakota.

Android beats Apple in application development war

Android beats Apple in application development war

Android beats Apple in application development war — Android is increasing its lead for developers, eroding the long-standing maxim of creating apps for “iPhone first.”

Career Planning Template
Career Planning

The Developer Economics: State of the Developer Nation Q3 2016 reports Android now has a whopping 79 percent “mindshare” among mobile developers, the highest for any platform the company has measured since it began its quarterly surveys back in 2010. The record comes as the mindshare for iOS has consistently tracked at 51 percent to 55 percent since 2013 (although that figure rises to 61 percent for professional developers).

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More important, perhaps, almost half (47 percent) of professional developers now consider Android their primary platform, up seven points in just six months. Apple, meanwhile, is going in the opposite direction. The number of mobile developers who consider iOS their primary platform dropped eight points, from 39 percent to 31 percent.

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.

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.

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?