2017 IT Job Market

2017 IT Job Market Summary shows 60,400 IT Job Created

2017 IT Job Market Summary data reported by Janco Associates is a good sign for IT Professional. Even though the number of new IT jobs lagged behind the prior four years, most of the lost jobs were in the Telecommunications field. Much of that can be attributed to automation of that function.
IT Job Market growth 2017 Computer and Systems design IT professionals saw the greatest increase in jobs with 46,800 new jobs added. That was followed by other Information Services with 10,700 and 6,300 in Data Processing, hosting and related services. After adjuments by the BLS Telecommunications was flat and 60,400 net new jobs were added in for IT Professionals.

There some differences in the data between the various charts as the number in the final reflect an adjustment in the November 2017 data of 20,700 additions to the telecommunication job market.

States unemployment

States unemployment in December 2017 higher in one more state

States Unemployment – The December BLS data shows there are 4 states with high unemployment number.  The states are Alaska 7.3%, District of Columbia 6.0%, New Mexico 6.0% and West Virginia 5.5%.

States with high unemployment

The question is what is the impact of this change on the IT Job Market?  Our answer is none as we still have 23 states in “full-employment” with full employment being defined as an unemployment rate of 4% or less.

Full Employment states
the bellwether states of Utah, Colorado, Massachusetts, Virginia, Florida, and Texas are all at unemployment rates of 3.9% or less

Top 10 High Demand IT Jobs

Top 10 High Demand IT Jobs

Top 10 IT Jobs in High Demand

Janco has just released it 2018 IT Salary and has identified the top 10 IT Jobs in high demand.  While the overall median salary for IT professionals now is over $90K, these in-demand jobs command more.  (FYI full job descriptions for the top 10 jobs are contained in Janco IT Job Descriptions HandiGuide)

  1. Big Data Programmer/Analyst – $135K to $196K . A big data programmer/analyst’s job is to turn these mountains of data into actionable insight.  Exponential data growth is a reality and will double every two years at least, representing massive growth from 2010 to 2020.
  2. Data Scientist – $116K to $163K. A Data Scientist interprets, analyses, and scrubs data at an advanced level.
  3. Database Specialist – $108K to $161K. A Data Specialist selects and implements database solutions.
  4. Data Security Analyst – $118K to $169K.  A Data Security Analysts are cybersecurity professionals who manage security software, instruct users on best practices and ensure the enterprise system is free of breaches.
  5. Software Programmers – $93K to $155K. Software developers create, advance and maintain web, mobile and systems applications. Skills in demand are included C++, iOS, and Android.
  6. Software Engineers (System Programmers) – $108K to $166K.  Software engineers create advanced-level applications for computer systems, web applications, and mobile devices. These IT professionals are experts in both code and computer science.
  7. Web Designers – $70K to $118K – Designers, unlike their non-tech colleagues, leverage both their creativity and coding skills to create full stack websites. These technology mavens are experts at creating more meaningful user experiences with advanced coding, leading to higher conversions and better traffic data.
  8. Wi-Fi and LAN Network Engineers – $99K to 146K. Network engineers make enterprise operations work by designing, managing and securing complex infrastructures.
  9. Network Security Administrators – $107K to $155K. Network Security Administrators use their extensive knowledge of networks to provide security to complex infrastructures. Their primary focus is combating phishing scams, ransomware, and other hacking attempts by cybercriminals.
  10. Network Security Engineer $115K – $162. Network Security Engineers are responsible for implementation, maintenance, and integration of the corporate WAN, LAN and server architecture.

IT Professional Mean Pay exceeds $90,000

Mean Compensation for all IT Pros in 2018 now is $90,116 up by 3.5% from 2017

IT Professional Mean Pay now is well over $90,000 in both large enterprises and Mid-Sized ones.  IT executives in large enterprised now command a mean salary of $159,748 – which is up 2.53% from last year and rising.

IT professionals are now among the highest paid staff level individuals in many organizations.

IT Professional Mean Pay

IT Professional Mean Pay
IT Professional Mean Pay

Salaries for qualified IT Pros will continue to increase as there currently is a short supply of individuals who have the skill sets necessary to work with several new and advancing technologies.

The positions in the greatest demand are for Executive and Middle Management positions with experience and working knowledge of Iop, Blockchain, and migration of applications to SmartPhones and Tablets in both the iOS and Android worlds.

IT Job in Demand

Janco released its full suite of IT Recruiting, Hiring, and Job Description suites of offerings to help HR departments and IT management teams to help them have the tools at hand as the IT job market continues to expand.

Human Resources – IT Professional Mean Pay

IT Job Descriptions

IT Job Descriptions Updated

IT Job Descriptions Updated

IT Job Descriptions
The 2018 version of the Internet and IT Job Description HandiGuide now contains 288 full job descriptions

The Internet and IT Position Description Handiguide 2018 edition has just been released.  It now has 288 full job descriptions,  They have all been reviewed and updated to include social media and blockchain development and operational considerations.

Each of the job descriptions has been reviewed and updated to meet the latest security and mandated compliance requirements.  Added to this edition is a section on sexual harassment.  In addition, the electronic version of the termination checklist has been updated  to reflect all of the mandated and security requirements that have recently come about,

The  job descriptions that have been added this year include:

    • Blockchain Developer
    • BYOD Support Supervisor
    • Information Assurance Analyst
    • IT Security Engineer
    • Manager Data Center
    • Manager Device Technology
    • Security Architect

Read Job DescriptionBuy Job DescriptionSample Job Description

Highest Unemployment States

Highest Unemployment States are in unrelated job markets

Highest Unemployment States are Alaska, District of Columbia, and New Mexico.  Two of the job markets that have unemployment rates higher today than a year ago are Alaska (6.6% – 2016 and 7.2% – 2017) and the District of Columbia (5.8% – 2016 and 6.6% – 2017).

Highest Unemployment States - Graphic

The interesting fact about these three states is that they have seen little of the positive effects of the improvement in the national job market with its low unemployment numbers.

National Unemployment Rate - Graphic
The U.S. national unemployment rate is at the lowest levels that it has been at in over seven (7) years.

The current unemployment rate for the U.S. is just about the full employment rate (4.1% versus 4.0%).  At that level companies typically begin to increase salaries to help acquire and maintain the necessary staffing levels to meet operational objectives.

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Digital Brand Manager Why?

Digital Brand Manager why have the position

Digital Brand Manager Why
The Digital Brand Manager helps a company drive growth in its brands and product lines

Digital Brand Manager why have the position is a question that if you have to ask means that you do not understand the new market place.  Social media and networks drive traffic to social networking sites and websites where reputations and products are focused on.

The Digital Brand Manager is the primary focus point for the Internet and social network presence of a brand. The individual is responsible for digital consumer experiences across the entire enterprise and its operations. They help a company drive growth in its brands and product lines by converting traditional physical brand management process to social media ones, and oversee the rapidly changing digital sectors like mobile applications, social media and Internet based marketing.

The reasons why an organization should have a Digital Band Manager:

  • They are responsible for executing and evolving the enterprise’s Social Media Strategy
  • Understanding a brands performance & emerging company/consumer needs.
  • Defining channel roles
  • Establishing content strategy
  • Managing the social persona development of the brand’s social network

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596,300 IT jobs to be created

596,300 IT jobs to be created between 2016 and 2026

596,300 IT jobs to be created in the next 10 years according to BLS Forecasts.  The BLS projects the median salary for all IT jobs will be $82,830 excluding inflation.  For most jobs a Bachelor’s degree will be required, those would include:

  • Software Developers, system software (46,100 jobs median salary $105,860)
  • Software Developers, applications (253,400 jobs median salary $100,080)
  • Computer Systems Analysts (53,000 jobs median salary $87,220)
  • Operations Research Analysts (31,300 jobs median salary $79,200)

For those IT Pros that do not have a degree but some college, they will opportunities as Computer User Support Specialists (71,100 jobs median salary $49,390). These will be the lowest paying jobs in the IT job market.

When we take that project and compare it with what Janco says are the median salaries for staff positions we there there is significant room for growth in compensation levels.

IT jobs median salary
These are the latest summary results of Janco’s salary survey which is is updated twice a year; once in January and then again in July.

The growth in salaries will be greatest amount those who “create” code and applications. User support will end up being minimum wage jobs.  Added to that as new applications are created they will have more built in help, self correction and tutorials negating the need for “specialist” who know the the applications and devices at a very low level of detail.

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Top 10 Interview Best Practices

Top 10 Interview Best Practices to get the candidate to say yes

Top 10 Interview Best Practices to improve an enterprise’s chances that a candidate will say yes to your job offer.

  1. Make the right impression from the first point of contact to the job offer.
  2. Have complete and accurate job description available during the interview.
  3. Let the candidate review the job description before the interview.
  4. Communicate to the candidate what the interview will entail.
  5. Be prompt and do not make the candidate wait.
  6. Allow no interruptions and focus on the candidate.
  7. Prepare for the interview and have a set of questions ready to be asked.
  8. Have materials to be provided to the candidate available –  put a post-it note on the materials with the candidate’s name on the materials.
  9. Be enthusiastic and positive not only about the job that is being filled but also about the company.
  10. Define next steps at the end of the interview.
Top 10 Interview Best Practices
“Everything enterprises need to hire the best IT Pros as demand for IT Professionals increases” – CIO Fortune 500
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IT Job Market spotty

IT job Market spotty while overall job market is flat

IT job Market spotty with the overall hiring of IT Pros falling behind the rate of growth in the prior 3 years.

As of August, IT IT job market has grown by only 19,300 in 2017 versus 55,400 in 2016.

With the YTD rate being slower, the two hurricanes, and growth of 11,400 in September of last year the prospects for IT Pros are not all that great.

Sure companies involved in the rebuilding processes in Texas and Florida will do well.  However, we do not think this will translate into new IT jobs.  Rather we believe that CIOs and CFO will continue to put the breaks on increased IT spending.

From our analysis of current hiring prospects, we see that hiring for all levels of management in IT is projected to be down for several quarters. Consultants and contractor use will be flat.  The only bright spot will be in the programming and systems analysis staff levels.

IT Hiring down with the only positive aspects being at the IT staff levels
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Job market improves

Job market improves – 25 states now at full employment levels

Job market improves to the point that there are currently 25 states, (including the District of Columbia), that have unemloyment rates of 4% or less.  At those levels most HR professionals consider those areas as being at full employment levels.

Job market improves
Job market improves – Comparison of unemployment rates for states currently at full employment levels (4% or lower unemployment)

The striking factor in our analysis of the data is the dramatic improvement in the unemployment levels if the 25 states that are at full emploment.  It is almost as if a light swith has been flipped.

Almost one half of the states have unemployent levels that are 2 to 3 percent range.

Read on …

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IT Job Market Not Brisk

IT Job Market Not Brisk – Slower growth rate than 2016

IT Job Market Not Brisk as the number of new jobs created in 2017 lags 2016 as of July buy 35,600 jobs.  That may not be a good omen of the balance of the year.

IT Job Market Not Brisk
YTD the number of new jobs created for the IT job market lags what occurred last year.

In conversations with several dozen CIOs, CFOs, and recruiting managers, Janco found that there was significant reluctance to staff for new positions until the economic horizon is more stable.

Drivers of instability are whether a new tax plan will be passed in the near future and the political uncertainty associated with the current grid lock in Washington.

Current hiring plans by CIOs and HR recruiting managers are depicted in the chart below.

CIO and HR recruiting managers current hiring plans and forecast
CIO and HR recruiting managers current hiring plans and forecast

For more on this go to https://www.e-janco.com/Career/EmploymentData.html

 

 

Telecom drag on IT Job Market

Telecom drag on IT Job Market – 39,200 jobs eliminated in last 12 months

Telecom drag on IT Job Market – telecommunications hiring has been suffering this year. The industry dropped 700 jobs in June, making a total of 39,200 jobs lost in 2017. That comes as no surprise considering the whirlwind of telco mergers and acquisitions. Verizon’s acquisition of Yahoo’s Internet properties led to a massive cut, Windstream’s purchase of EarthLink eliminated hundreds of employees, and Vonage recently laid off 90 people due to acquisition redundancy.

Telecom drag on IT Job Market
48,800 IT jobs have been added to the IT Job market despite a loss of 39,200 telecom jobs in the last 12 months.

Janco has just completed its analysis of the first six months of the IT job markets growth and adjusted its forecast for IT job market growth the remainder of this year.  In summary, the IT job markets should grow at the about the same rate as it did in 2016 even though IT job market growth currently is behind what occurred in the first six months of 2016.

The CEO of Janco Associates, Inc., Mr. M. Victor Janulaitis said, “There continues to be a shrinking of telecommunication jobs.  In the last 12 months alone, there as been a loss of 39,200 telecommunication jobs while the rest of the IT job market is expanded by 88K new jobs in the same period.  This is a trend that we think will continue for the next few quarters.”

The CEO added, “In the last 3 months over 14,600 jobs have been added in the Computer System Design and Related Services sector of the IT job market. Based on our conversations with scores of CIOs, CFOs, and CEOs; we see that trend continuing. As a result, we forecast that the overall IT Job market will grow by over 60,000 jobs in the next six months. This would result in the creation of 72,000 new IT jobs in 2017. That should equal the rate of IT job market growth that was seen in 2016.”

Janco interviewed 113 CIOs, CFOs, and CEOs in the last several weeks as part of it’s IT Salary Survey process ( https://www.e-janco.com/salary.htm ).  Janco’s CEO said, “C-Level executives interviewed after the election were optimistic that there will be more incentives for increased IT spending and hiring.  It seems the tide has turned and they now feel there will be  less growth in IT budgets for the remainder of this year.” He added, “Hiring prospects are marginal at best, except for IT Staff at the worker level in the latter part of this year.”

Janulaitis added, “There is little demand for new executive and senior management positions over the next few quarters.  On the bright side there looks to be an increase the headcount for IT staff towards the end of this calendar year.  The trend to IT job creation is up and if a  tax reform is implemented one would expect that IT jobs would be the first ones that were opened to be filled.”

More information can be found on Janco’s analysis of overall labor picture and the IT job market on Janco’s website.

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, IT Job Descriptions, and its semi-annual IT Salary Survey.

IT Salaries up

IT Salaries up 5.32% in the past 12 months

IT Salaries up by over 5% in the past 12 months for all IT positions surveyed by Janco in is semi-annual IT  Salary Survey. The median salary (for the positions surveyed) has gone from $82,775 to $87,175.IT Salaries up as demand for IT professionals increasesMajor findings of the 2017 IT Salary Survey are:

  • Salaries for IT executives have fared better in large companies than mid-sized companies.
  • Middle manager levels in mid-sized companies with an increase of 6.65% – most of which can be attributed to performance bonuses and the hiring of significantly more qualified individuals earlier.
  • Middle management positions in IT organizations of SMB’s had the greatest demand for new hires. Companies were gearing up their internal US based IT organizations pushing IT salaries up by 6.65% (from $80,792 June 2016 to $83,964 in June 2017).
  • 2017 IT job market started with a bang.  That has slowed. We predict that the IT job market will grow at about the same amount as it did in 2016 when 71,500 new IT jobs were added. IT salary growth will be almost nil for the remainder of the year.
  • Median CIO tenure has risen by a month to 4 years and 6 months.
  • Positions in highest demand are associated with security, training, large data center management, big data, distributed/mobile system project management, quality control, BYOD implementation, capacity planning and service level improvement.
  • On shore outsourcing and H-1B visa jobs have peaked.

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Janco interviewed over 127 (72 after the election) CIOs in the last several weeks as part of its 2017 IT Salary Survey process. Janco said, “CIOs interviewed after the election and post-election processes were optimistic that there will be more incentives for increased IT spending and hiring. It seems the tide has turned and they now feel there will be little chance for improved growth in IT budgets for the remainder of this year.” They added, “Hiring prospects are poor at best, especially with the higher salary levels due to the overall increase in IT salaries at the end of last year.”

 

Employment Picture

Employment Picture not looking good

IT Employment Picture is spotty at best.  Many CIOs were optimistic at the beginning of this year, but they have pulled back on hiring.  After 5 months, there has a net loss of 7,200 jobs in the IT job market.  In addition this year is trailing IT job creation of last last year by over 18,100 jobs.IT Employment PictureIn interviews with over 100 CIOs, we found that CIOs are no longer as confident about the economic outlook as they were earlier in the year.

CIO Hiring PlansWhit this as a preamble, Janco has reduced its forecast for the number of new IT jobs to be added to be about 77,200 for the whole of 2017.  Earlier we had forecast that well over 140,000 new jobs would be created.

Number of new IT jobs to be created in 2017