High Unemployment

High Unemployment States

High Unemployment continues to persist in four states: Alaska – 6.7%; New Mexico – 6.6%; District of Columbia – 6.9%; and Louisiana 5.7%.  All four of these states have had a dismal recovery.

Recovery has missed these four high unemployment rate states.

 

It is not clear what it will take to get the people in those states back to work.  In the case of the District of Columbia, with the emphasis of reduction in the size of goverment, unemployment will stay high.

Both Alaska an Louisiana should have a clear path to recovery with the emphasis on energy independence. New Mexico is an unknown at this time.

Full employment states

There are 21 states that are in a full employment mode.  That is the best it has been since early in the George W. Bush administration.

Colorado is in a full employment mode with the lowest unemployment rate in the nation.

All but 2 of these states (New Hamphsire and South Dakota have unemployment rates that are lower than they were in the same month of the year as last year.

In the case of IT job market, that is a very good sign.

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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

 

 

Security Architect

Security Architect is a Hot New Job

Security Architect job description
Security Architect is just one of over 280 full job descriptions that are delivered electronically

Security Architect – The one position that CIOs and C-Level executives are looking to fill.  With all of the recent cyber-attacks and negative publicity they have generated there is a need for this proactive position.

Most of the other positions are focused on “after the fact” monitoring.  This one looks at what could happen and creates an architecture which address potential cyber-attacks and hacks.  The individuals operate on a philosophy that is easier to prevent something from happening versus trying to address problems after they occur.

Position Purpose

The individual in this position  assumes responsibility for data security including the planning, design and implementation of security measures which safeguard access to enterprise terminal files and data elements.  The administrator provides rapid response to user community’s request for security assistance.

They  secure enterprise information by determining security requirements; planning, implementing, and testing security systems; preparing security standards, policies, and procedures; mentoring team members.

The full job description for this position has just been released.

Security Architect read on…

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H-1B visa holders paid less

H-1B  visa holders paid less

H-1B  visa holders paid less.  According to the latest filings by Apple Computer. 99.6% of the 4,807 visa applications for the current year have a “stated” average salary that is less than the going rate for the current year.

Apple Computer files average salaries that could lower for actual hires than the going rate for the San Francisco Bay area

Granted that Apple may pay individuals more than is stated in the application, but they do have the option to pay less.  That is the core of the issue with the H-1B visa program as it is implemented today.

The question is the program to be be altered in such a way to eliminate the possibility that companies like India based outsources can use the program for their own profit at the expense of US workers’.

In our next IT salary survey we will address this issue this issue in depth.  Janco’s survey is an industry standard and is (and has been) used by over 3,000 organizations in the US and Canada, In addition, the results of the survey have been published in the Wall Street Journal and CNN to mention a few media outlets.

Several major unions and governmental agencies use the survey for setting pay grades and overall compensation levels.

Read on IT Salary Survey

 

 

 

Tenure of Telecom pros exceeds that of CIOs

Tenure of Telecom pros exceeds that of CIOs by 18 months

Tenure of Telecom pros – In the process of preparing for our mid-year IT salary survey, we have started to review the impact of the baby boomers who are now starting to to retire in droves.   The issue that CIOs and CSOs face is wither they have the resources in place to fill those positions as these professionals retire.

Employee Tenure
Telecom professionals have a median tenure of six years. That is 18 months longer than for CIOs.

Added to this is the fact that over the last several quarters the total number of job in the telecom field has shrunk significantly. This has also dampened the number of new entrants into that job market.

Preliminary data that we have seen shows that telecom salaries are not keeping up with the rest of the IT industry.

CIOs and CSOs are going to have to address succession planning for not only the telecom pros retiring, but also for the rest of the baby boomers that they have on their staffs.

10 steps to a raise

10 steps to a raise as the IT Job Market Improves

10 Steps To A Raise - IT Salary Survey
10 Steps To A Raise – IT Salary Survey provides data on 73 unique positions in over 100 metropolitan areas in the US and Canada.

10 steps to a raise is a program that anyone can follow.  They are easy and something that IT pros (and others) can implement fairly quickly.  However the results may take some time.

  1. Make users love you
  2. Understand where the CIO and company are moving
  3. Learn how to implement and apply the latest technology
  4. Get certification or first hand experience
  5. Market your skills
  6. Have and use the latest technology and tools
  7. Provide peers with insight and training on your area of expertise
  8. Fit into the organization as a team player
  9. Be a focal point in the latest technologies
  10. Network with IT Pros in other organizations that have the same technical responsibilities

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.

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.

Read on…

CIO Role Changes with Each Technology Types

CIO role changes and faces new challenges – no longer just a technologist now a business partner

The role of the CIO and CTO is changing as more enterprises more towards a “Value Added” role for the Information Technology function. The Strategic Implications of each type of technology are different.  The CIO, as a result needs to be able to adapt qucikly

CIO Role Changes
The chief information officer’s (CIO) role, responsibilities and influence is growing in today’s boardroom. And the CIOs job itself is expanding as well. The CIOs of the next decade face many challenges.

The job of overseeing technology at corporations is changing as fast as the technology itself. No longer is the chief information officer the “nerd-in-chief,” merely chasing after viruses and ordering new mouse pads. Now the CIO is finding ways to utilize hardware and software for strategic business purposes, such as discerning market opportunities and improving customer service. The high-tech tools of choice can include sophisticated data mining like social networking, and enhancements to the company website.

As the CIO’s role changes, a key question for the chief executive is whether the individual in that position can handle all of these new challenges. Today, the CIO often is working directly with all of the other C-Level executives. He or she now has to undertake customer-service, marketing, and new-product analysis. This can require “people” and analytic skills in addition to advanced e-knowledge. CIOs are called upon to think like business people.

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Read on… CIO Role

 

Hiring right employees

A critical CIO skill – hiring the right employees

Hiring the right people – Career path definition and compensation planning need to be in place along with well defined job descriptions.

Hiring right employees is one of the most critical factors in the success of a CIO.  The right people will have the skills, aptitudes and attitudes  to help mobilize and evolve systems and technology solutions necessary to compete in today’s ever changing environment.t. With the right people, CIOs can move ahead and have a team that supports the enterprise’s and CIO’s success.

CIOs in today’s tough economic conditions have to know the answer to the questions of what they can do to ensure they hire the right people?  A first step Before CIOs start the  recruiting process, they need to a good handle on:

  • Understanding the job requirements and expectations from the employee
  • Understanding the working style of the managers and staff where the position will be
  • A consistent and robust interview process is a must for a successful recruiting process

    Understanding the company’s culture and communicate that to the candidates

  • Have detail job descriptions in place for each position to be recruited
  • Conducting structured interviews that get to the true fit of the candidates with the enterprise, and
  • Managing the process to minimize your enterprise’s legal exposures
  • Remembering that a large percentage of those hired will only be with the company for fewer than 7 year – some will leave voluntarily others will be terminated.

After CIOS have completed  planning, screened the applicants and interviewed job candidates, the decision to hire a person ultimately rests on your intuitive sense of whether this is the right person for the job.

Nothing can prepare any hiring manager  for that decision except their own experience supplemented with hard facts and discussions with the other interviewers.

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If many individuals are interviewed for many position, interviewers  will learn the signs that indicate a potential hire is right. If interviews and hiring is infrequent, hiring managers will have to depend on less-intuitive methods and other people to help you.

If the company believes in high quality employees, you should be really enthusiastic about the person you want to hire, not just lukewarm.

Read on… IT Hiring Kit

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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Women CIOs comprise over 20% of all CIO roles

Women CIOs  hold over 20% of all CIO roles according to data analyzed by Janco Associates

Women CIOs – In the process of capturing public data on CIO compensation, Janco has found that well over 1 out of 5 CIOs is a women.

Women CIOs and other C-Level positions

According to the CEO of Janco Associates, at least two thirds of large public companies doing CIO searches require the recruiter to include women in the candidate pool. Further, when “all else is equal”, between a male candidate and a female one, companies are tending to choose the latter specifically to enhance the diversity of perspectives on the management team.

Unfortunately, even with this data, there are still too few women in senior, experienced roles to populate the candidate pools of all diversity-minded companies. So it’s not enough to decide at the CIO level to hire a woman. The relevant decisions must be made and opportunities offered earlier, at the developmental stage of potential finance leaders.

Companies need to provide more mentors who can share wisdom about things like where to invest time and ways to be motivated.

For those with leadership potential who prioritize family and stability over always making the best career move, the path to the C-suite may be inherently more difficult in CEO and finance than in other functions, like IT and human resources.

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.

“Everything you need to respond and hire as demand for IT Professionals increases” – CIO Fortune 500″
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Simplify Recruiting While Making
Sure You Hire The Best IT Staff Possible

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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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.

Why H-1B is Wrong Solution

Why H-1B is wrong solution – a question that we have been asked

Why H-1B is wrong solution – a question that we have been asked by a number of reporters (see press release).  Below are two tables that  Janco has created in getting the answer to that question.

Why H-1B is Wrong Solution
H-1B Visas 2015 – 2017 – What is wrong with the H-1B visa program
Why H-1B is Wrong Solution base on who get the visas
Number of H-1B visas issued for IT related jobs is 78.5% of the total – Is a lottery the right way to allocate the visas

Below are some of the questions that we were asked by a reporter for a national publication.

General Questions

Reporter: Is the Information Security Analysts job the only H-1B security job in your findings?

Janulaitis: Yes, that is the only pure security role.  However, there are individuals who have those skills and are classified as Network and Computer Systems Administrators. They fill some of the roles of the security analysts.

Reporter: Do you have any insights into whether that number is so low because. A) no company’s are looking abroad for security skills. or B) people with these skills are applying but not getting accepted? 

Janulaitis: First there has to be demand for that role.  Many C-Level executives do not feel comfortable with security being done by non-US workers who are not on shore and/or are outsourced.

When C-Level executives have a choice, the idea that an H-1B is responsible for security is not one they relish. They need some assurance that H-1B employees will remain with the company.  There have been too many hacks that have taken place where immediate response is required. There is less control when the individual is an H-1B employee that is a contractor.  Companies like Microsoft and Apple (vs Tata’s) offer real opportunities for security specialists. These are US companies, not outsourcers, and have a long term view.  I know both Microsoft and Apple have good internal training programs in place with real career paths for the “best of breed” technologist that they hire with H-1Bs.

Reporter: Do you think that IT security and cyber-security skills should be given special consideration for H-1B visas? Under the proposed revamping of the program that may include moving to merit-based selection program rather than a pure lottery system.

Janulaitis: In general, all H-1B visas should be merit based.  My feeling is that the first choice for jobs should be US nationals who are qualified, then foreign nationals who are graduates of US Universities and want to become US residents and lastly, graduates of foreign Universities who want to become US residents.  The idea that there is a lottery and companies like Tata win a large number of positions that they then use to “replace” US workers does not make any sense at all.  The purpose of the program is to give the US a competitive edge in technology not reduce cost for US corporations.

Reporter: The question is being raised because the global demand for cyber-security workers is expected to reach 6 million by 2019. There is a projected shortfall of 1.5 million qualified security pros. More than half of organizations today say that finding and recruiting talented IT security staff with the right skill sets is a “significant” or “major” challenge.

Janulaitis: First we start to educate our IT pros in the disciplines required. Then have jobs for them when they graduate and there will be much less of a need for “foreign” workers.  It should be a H-1B requirement that these individuals have a “desire” to become full time US residents.  If companies like Tata game the system, they should be penalized. Perhaps they could be required to post a bond of say 20% of the annual salary be put in trust.  That would be returned when the individual qualifies to be a permanent resident.  If they do become full time residents within a specified period, then the bond would be forfeited and the individual would have to leave the US. We need to take the profit out of gaming the H-1B program.

Other Observations

Reporter: Any other insight you might have into this would be greatly appreciated.

Janulaitis: Companies like Tata should not be allowed to get the number of H-1B visas they do.  They are gaming the system by creating US subsidiaries that are just a shell to get revenue out of the US and not necessarily help the US to be a technology leader. The focus of the H-1B program should be to get foreign nationals that are world class to come to the US, become full time residents, and contribute to our society.  Currently students come to the US and take the limited number of advanced degree slots available we have and are capping the number of US nationals who can fill them.  It is not the US’s role to educate the world.  We need to do everything possible to have H-1B visa holders stay here.  It is not good when over 75% graduates leave and go back to place like China and India.

I believe much of the problem we have is due to our educational system.  We need to have more of a focus on math and science and less on social engineering.  As a county we spend more on education but rank behind Poland. We have a bias towards foreign nationals in our graduate and doctoral programs.  We need an educated population of college graduates who focus on both math and the science. Then we need to have jobs for the individuals that have STEM (Science, Technology, Engineering and Math) degrees. That includes undergraduate as well as masters and doctoral degrees.  It is much easier to grow our skill base if we have the professors who can teach those subjects.  China, for example, is graduating more students from it universities in robotics on an annual basis than we have in total.