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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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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Over 50% Job References Not Checked

Job references not checked by employers

Job references used to be the gold standard that almost all enterprises used to verify candidates backgrounds and character.  That is no longer the case according to Janco Associates.

In the process of updated and re-issuing its Interview and Hiring Guide, they found that only 46% checked even one reference.  Surprisingly they discovered that 30% depended on statements made by candidates during the actual interview process.  In addition, 26% whet to social media pages like Linkedin and Facebook reviewed what was posted there and assumed it was factual and correct.

Job references
Hiring managers no longer depend as much on job references when evaluating whether to hire a candidate.

The move away from personal references has been driven by the inability of individuals to provide “accurate” information on candidates.  For example, if a negative reference is given by an enterprise’s employee or agent, the enterprise could bee subject to litigation. Plus, many severance agreements stipulate that companies provide “positive references” for terminated employees.

Interview and Hiring Guide

Version 2.0 of the Interview and Hiring Guide contains specific questions that interviews can ask about prior employment, the position the candidate is interviewing for, education and training, remote workers, decision-making and creativity, management and leadership, non-work activities and interests, and questions that should be avoided. In addition, it provides a list of best practices for screening resumes, phone screening, the top 10 interview best practices, and hiring best practices.

The Interview and Hiring Kit can be purchased separately $89 or with one of the four versions of the IT Hiring Kit, ranging in price from $579 to $2,399 with 12 months of update service or $799 to $2,799 with 24 months of update service.

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Top 5 Hot Jobs

Top 5 Hot Jobs

Chief Digital Office (CDO) & Chief Mobility Officer (CMO) Hot C-Level Jobs

Top 5 Hot Jobs – CDO & CMO Hot C-Level Jobs that are not only new but also hot.  In the case of Chief Digital Officer (CDO), we have found that one in five companies now have some in that role.  In addition, half of those enterprises hired the incumbent in the last 12 months. The case is not quite as strong for the Chief Mobility Officer (CMO) as we found that only one in ten organizations have an individual other that the CIO assuming those responsibilities.

Top 5 hot jobs
Chief Digital Officer is one of the hottest jobs in the technology arena. Other hot jobs are Chief Mobility Officer (CMO), Digital Brand Manager, Data Scientist, and Social Media Specialist.

Many of the hot new jobs often report to the operational side of the business, instead of the traditional IT organization under the authority of the CIO.  Part of the reason for that is that almost half of all IT functions report up thru the financial side of the enterprise, not the operational side.

The five hot new jobs are listed below and have links to pages describing the major roles and responsibilities they have:

All of these jobs have one thing in common.  They are addressing the issues, roles, and responsibilities of the new age marketplace.  Without the Internet, e-commerce, and mobile users there would be no need for these positions.

But, as it is these are the new jobs that have been created by these new technologies and changes that have taken place.

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Employment Improves

Employment Improves as only three states are above 6% unemployment

Employment improves as only New Mexico, Alaska, an Alabama have unemployment rates over 6%.  At the same time there now are 19 states that have unemployment rates at 4% or less. Six states have unemployment rates ar 3% or less.  Those states are Vermont (3.0%), Colorado (2.9%), North Dakota (2.9%), Hawaii (2.8%), South Dakota (2.8%), and New Hampshire (2.7%)

High Unemployment States - February 2017
States with the highest unemployment levels
Employment Improves
Employment Improves and unemployment rate is 4% or less in 19 states

At these levels salaries will start to rise and we forecast that the overall participation rate will begin to increase.  This in turn will cause salaries to edge up.

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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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Tech Savy Young Hires Talent Shortage

Tech savy young hires talent Shortage is real for many enterprises

Shortage of Young IT Talent makes the promotion process falter

Tech savy young hires talent shortage is widely discussed among CIOs. The shrinking unemployment rate has drained the talent pool in many corporate IT functions and industries, and companies continually complain that they can’t find qualified staff. For Information Technology departments, the problem is different: If they were looking solely for the technical skills they wanted years ago, they would be overwhelmed with candidates. Today, though, such skills are table stakes, and the focus is on finding people who stand out because they have other desired qualities as well.

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Given companies’ increasing reliance on data in decision-making, demand is soaring for a demonstrated aptitude for analytics. Even more important for the long-term success of new hires, however, are assorted “soft” skills that allow them to communicate and collaborate with others, as well as influence others’ attitudes and behaviors.

According to some CIO, there is not a shortage of finance talent per se, but there is a shortage of people who have both technical expertise and these additional skills that will enable them to work well inside an organization.

Given this shortage, IT departments are aggressively positioning themselves as employers of choice. And they can’t allow themselves the luxury of easing up on that quest, since their competitors are doing the same thing.

What are CIOs and CFOs looking for

CIOs and CFOs are telling Janco Associates they want Information Technology students who know how important application strategy will be in any IT function and who show a willingness to embrace and explore analytical tools and methods. Students don’t necessarily need to know how to code.  Many companies that are successfully hiring young candidates with prowess in analytics are looking beyond traditional sources like business schools and accounting firms.

The problem is that demand for those candidates far outpaces supply. CIO should be looking for people who may not have the desired business background or professional experience but who possess the analytical skills IT pros need now and in the future.

IT Salaries rise by 5.19%

IT Salaries rise more than any time in the past 8 years according to Janco Salary Survey

IT Salaries rise more than at any time since the dot com bubble.  The median salary for all IT professionals now is $87,072 and it is hard to find any positions that pay less than $50K per year. Much of this is due to the preliminary data from both actual salaries paid and budgeted for in 2017.

 

Much of this rise is due to an improving economic forecast and less of a reliance on off-shore outsourcing.  The full salary survey is to be released the second week of January.

Read on…

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Wall Street Journal quotes Janco forecast

Wall Street Journal quotes Janco IT Job Market forecast

The Wall Street journal quotes Janco for the 6th time this year. That is a record for the firm and its CIO.  In addition, there are two more months to go.

You can go to their blog at http://blogs.wsj.com/cio/tag/janco-associates/ and see the quotes.

IT Job Market Growth for 2016 versus 2015
IT Job Market Growth for 2016 versus 2015

The topics reported on this year come under the following titles:

  1. IT Job Growth Down in October: Analysis – CIO Journal
  2. Compensation Up for Top-Earning CIOs: Analysis – CIO Journal
  3. IT Hiring Down in September –  WSJ Economy
  4. IT Hiring Rebounds in June, but Overall Growth Remains Slow –  WSJ Economy
  5. IT Job Growth Hit Five-Year Low in April –  WSJ Economy
  6. IT Hiring Continues to Slide – CIO Journal

With this latest quote Janco is now viewed by many enterprises as the go to sources for IT job market and IT salary information.  This keeps it in line with the long-term identification of Janco and its CIO as a leader in the field of IT management information.

Janco continues to keep tabs on the IT Job Market, IT Compensation, and trends that impact the overall infrastructure and strategy of IT and the CIO who are in charge. With this in mind Janco has identified 3 common skills that sucessful CIOs have.

  1. Successful CIOs are both visionary and pragmatic\
  2. Successful CIOs focus on ROI improvement of IT
  3. Successful CIOs inspire the enterprise and expand the business impact of IT

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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.

 

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.

IT Hiring Rebounds in June, but Overall Growth Remains Slow

IT Hiring Rebounds in June, but Overall Growth Remains Slow

IT hiring rebounds in June, reversing a steep drop in May (much of which was attributed to Verizon strike by 40,000 workers – 17,000 telecommunication) but signaling continued softness in the technology job market as firms cope with uncertainty from the upcoming U.S. presidential election and the United Kingdom’s decision to leave the European Union.

IT hiring rebounds
IT hiring rebounds

U.S. employers added 34,200 information technology jobs in June, following a loss of 19,400 positions in May, according to an analysis of Bureau of Labor Statistics data by consulting firm Janco Associates Inc. The June figure is up significantly from the same month a year ago, when 6,800 jobs were added.

About 46,500 IT jobs have been created year-to-date, down from 69,400 at this time last year. Growth in IT jobs hit a five-year low in April, CIO Journal reported.

Janco projects a net decrease in the size of the IT job market this year. The firm estimates 76,500 jobs will be added at year’s end, compared to 112,500 in 2015.

“At the beginning of the year people were much more optimistic,” said M. Victor Janulaitis, Janco’s CEO. Last month’s uncertainty surrounding the upcoming U.S. presidential candidates and questions over the implications of a Brexit scenario prompted many firms to become more cautious across the board. ” Everyone’s saying we’re really slowing down this summer.”

That means companies may not fill IT roles left open by retiring baby boomers and may cut back on contractors and consultants. Unessential technology upgrades without a clear return-on-investment may be tabled for the time being.

The forecast is not without bright spots. Companies have been hiring application developers and designers, Mr. Janulaitis said, although most have been internal. And a survey from Janco this month found that average compensation for all IT professionals has increased to $82,775 in 2016 from $ 82,246 a year ago.

IT Median Salaries
IT Median Salaries

Janco’s employment findings are based on an analysis of a basket of IT-related jobs data drawn from the Labor Department’s Bureau of Labor Statistics.

The broader economy also rebounded in June, adding a seasonally adjusted 287,000 jobs. That followed a dismal gain of 11,000 jobs in May.

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Info Tech Executive Salaries have recovered from 2008 downturn

Info Tech Executive Salaries have recovered from 2008 downturn

Info Tech Executives Salaries for most IT executives have recovered from the downturn of 2008.  If you a CSO in a large enterprise then you have seen your salary rebound by 14.56%. This has been drawn for the Info Tech Executive Salaries data base that is maintained by Janco Associates.

More data is available in the full 2016 Mid-Year IT Salary Survey that is published by Janco Associates.

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Jobs where the salaries for IT executive have not recovered are limited to three (3) executive positions in large enterprises.  VP Administration (down 2.25%), VP Consulting Services (down 9.0%), and Director Productions and Data Centers (down 0.75

Info Tech Executive Salaries - Large Enterprises
Info Tech Executive Salaries – Large Enterprises
https://www.e-janco.com/salary.htm
Info Tech Executives – Mid-Size Enterprises

These are findings from the 2016 Mid Year IT Salary Survey.  Other interesting observations for the survey are that salaries for the last 12 months for most IT staff, other than executives have remained flat.

Median compensation for IT Pros
Median compensation for IT Pros

The data shows that CIOs and their bosses value the upper level decision making positions while they view the lower level positions as a focus of cost.

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Other findings from the latest IT Salary Survey are:

  • In 2015 the IT job market grew by 112,000 versus 129,400 in 2014 and 74,900 and 21,800 in 2013 and 2012 respectively according to the Bureau of Labor Statistics (BLS).
  • IT compensation for all IT Professionals has increased by 0.64% in the last 12 months.
  • IT executive compensation across all organizations has shown another increase. The mean compensation for IT executives in large enterprises is now $147,260 (up 1.44%) and $131,384 (up 1.50%) in mid-sized enterprises.
  • Positions in highest demand are all associated with security, training, large data center management, distributed/mobile system project management, quality control, BYOD implementation, capacity planning and service level improvement.
  • Over the long term IT executives have fared better in large companies than mid-sized companies.
  • On shore outsourcing has peaked and companies are looking to bring IT operations back into their direct control and reduce operating costs.
  • Mandated requirements for records management systems and electronic medical records have increased the demand for quality control staff and custodians (librarians) of mechanized records.
  • Companies are continuing to refine the benefits provided to full time IT professionals. Though benefits such as health care are available to 80%, IT professionals are now paying a greater portion of that cost.

Unemployment Data Accuracy – Fact or Fiction

Unemployment Data Accuracy – Fact or Fiction

BLS adjustments reported they overstate Labor Force Participation Rate (LFPR) – For 2000 – 2010 the LFPR was overstated by 2.8%

Unemployment Data Accuracy – The BLS publishes a massive universe of data on the state of the US labor market.  Recently they reported that they have not captured the Labor Force Participation Rate correctly for the past 20 years.  They said they had overstated the percentage.

The BLS statement was:

The labor force participation rate that BLS projected for 2006 was 67.6 percent, but the actual rate was more than a percentage point lower, at 66.2 percent. Similarly, the projected rate for 2008 was 67.6 percent, but the actual rate was 66.0 percent. Finally, for 2010, the projected rate (67.5 percent) was nearly 3 percentage points higher than the actual rate (64.7 percent), which was much lower than expected because of the recession of 2007–09.

That adjustment means that almost 2,000,000 additional people were not in the labor force.  At the same time the BLS gave no indication that they have changed the methodology they used to generate that percentage.  Nor did they say they would go back and adjust the historical percentages that they had previously published.

A real question that has yet to be answered is the quality of the general unemployment percentages that was calculated in those periods. Was it correct?