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.
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.