IT Job Market Growth Slows in August

IT Pros face a mixed job market with a net gain of only 12,400 IT jobs in August – versus the 13,600 jobs added in July and 9,600 in June. This shows a slight positive trend – 96 CIOs interviewed feel that hiring will increase significantly six to nine months from now

The market for IT Professionals continues to show a slight improvement in hiring.  There was a net increase of 12,400 seasonally adjusted IT jobs in August according to the latest BLS data. There was an improvement in computer system design and related services accounted of 14,700 jobs and another 3,100 jobs in other information services which was offset by a loss of 4,700 jobs in telecommunications and 700 jobs in Data Processing, hosting and related services.

The entire job market in the US did increased by 96,000 jobs in August, but troubling was the fall in the labor market participation rate which fell another .2% to 63.5% with 368,000 dropping out of the labor force. Victor Janulaitis. The CEO of Janco Associates said, “The year to year comparison of workforce participation shows how deep a hole we are in.  Until those percentages turn around there will be little hope for a strong recovery.”

IT Job Market Trend Moving Average Workforce Participation Percentage

IT Hiring Picture Improves

IT Hiring Picture Improves

One in five chief information officers, based on Janco ‘s interviews with U.S.-based chief information officers, anticipate hiring lower-level staff for short-term needs, with almost 25% of them doing so in the next three months as temporary positions, Janco says. Overall, firms are trying to keep their I.T. head counts level when considering both contractors and employees.

In the short term CIOs and IT Managers are reducing the use of contractors and are looking to replace them with lower cost employees. Almost all of the top level IT pros feel that things are looking better for 6 to 12 months down the road.

Read on….

Top 10 Things a CIO Needs to Add Value

Top 10 for CIOs -What does the CIO have to do to be viewed as a business person versus a technologist?  There are many strategies that CIOs have followed that work. We have found some sure fired ways to have the CIO be a driver in the alignment of strategic business objectives with IT initiatives.  They are really the same today as they were back in the early days of computing.

  1. Look and be an executive – That not only includes speaking in business terms but all dressing and looking like the other executives. The key is to ensure the IT results are business focused and that both the CIO presents the big picture in terms of company strategy and ensuring IT and strategic business direction are aligned to it.  It is much easier to do when the CIO looks and talks the part.
  2. Have an opinion and present it – Do not go with what you think everyone wants.  Be brave and present ideas that will help the business to expand and grow.  If the CIO does not have an opinion what value are they in the executive suite?
  3. Check the ego at the door – No one wants to hear how great the CIO is.  It is much better if the other executives voice that and the CIO is humble in accepting praise.
  4. Get out of the detail – The CIO has a staff and they are the ones who do the programming and analysis.  CIOs need to focus on the big picture.
  5. Manage by mingling outside of IT – Get out of the “ivory tower” of IT.  Meet with other executives and operational staff frequently.  Invest at least 50% of the day to deal with business issues and become a key member of the executive management team and sounding board for where the organization is going.
  6. Stay within dollar and time budgets – CIO that are successful are the ones whose organizations deliver what they say, when they say it, and within budget.  That adds to creditability and makes it easier the next time around.
  7. Present a positive can do attitude – Focus on what can be done within what time frame. CIOs who say why something cannot happen often pushed aside by those how say what can be done.  It is better to implement part of a concept than say why the grand solution cannot be implemented.
  8. Management at the executive level s about selling and implementing ideas – It is not enough to present an idea, rather the CIO has to become a champion of an idea and transfer that role to the other executives in the organization.
  9. Take ownership – Not only when something succeeds, but also when it fails accept the results.  CIOs that come up with excuses and blame others do not last long in the executive suite.
  10. Innovation leads to success – CIOs who embrace new approaches gain a lot of creditability.  CIOs that hinder the use of new technologies are viewed as obstructionist and are bypassed in key decisions because they are viewed as some that the not accept change.

Top 10 Leads to Adding Value


IT Job Opportunities – 44.1% of long term employees can not find new jobs or have left the labor market

IT Job Opportunities

The U.S. Bureau of Labor Statistics (BLS) reported from January 2009 through December 2011, 6.1  million workers were displaced from jobs they had held for at  least 3 years. The data shows that 26.7 of those individuals remain unemployed and another 17.4% have left the labor pool all together. That adds up tp 44.1 % of these long term employees continuing to be out of work and does not include any factor for those who are underemployed. IT job opportunities for long term unemployed remain poor.

This was less than the  6.9 million for the survey period covering January 2007 to December 2009. In January 2012, 56 percent of workers displaced from 2009-11 were  reemployed.

Janco talked with a dozen IT Professionals who had been employed in IT for over 3 years with the companies and had been terminated.  One of the common refrains was, after being out of the IT job market for several months many of these professionals felt that their skills has decayed and that that employers did not view them in a positive light because of the lenght of time they had been out of work.  Some of these individuals were able to find “part-time” and “contractor” however they found the job market remains tight for them. Others have left the IT Market all together and had started alternate careers.

Long Term Employees Employment

IT Salary Survey 2012

IT Hiring IT Job Descriptions IT Salary Survey  IT Salary Survey  Job Descriptions

Unemployment is over 9% in 8 states not a good sign for IT Pros

As people continue to forecast an improvement in the economy, the latest BLS data shows there still are 8 states with unemployment number that are higher than 9%.

In the long run that is not good news for IT pros.  First, companies in those regions do not have good prospects so they typically will not hire or invest in new systems. Second, those who have jobs in high unemployment areas are less likely to move to new companies because of uncertainty about the economy reducing the number of opening created by voluntary moves.

The states with the highest unemployment numbers are:

  • Nevada – 12.0%
  • Rhode Island – 10.8%
  • California – 10.7%
  • New Jersey – 9.8%
  • North Carolina – 9.6%
  • South Carolina  – 9.6%
  • Georgia – 9.3%
  • New York – 9.1%

Add to that the influx of undocumented worker in California, Nevada, New York and New Jersey the employment picture looks like anything but positive. When will this turn around?  If you listen to many economists, there is a new trend that they say is happening and this may be the norm for the next several years.

IT Hiring IT Job Descriptions IT Salary SurveyIT Salary SurveyJob Descriptions

IT Hiring


IT Job Market Improves

IT job market increases significantly with 20,400 jobs added in July

One in five organizations is looking to hire additional IT staff within the next month – IT is not expected to regain all of the jobs lost during the 2007-09 recession until 2013

There was a net increase of 20,400 seasonally adjusted IT jobs in July  according to the latest BLS data. There was an improvement in computer system  design and related services accounted of 10,400 jobs; 7,000 in telecommunications, 1,900 jobs in Data Processing,  hosting and related services; and another 1,100 jobs in other information  services.

The IT job market growth trend for IT Professionals is down, See chart below.

              Hiring Trend Moving Average

At the same time Janco’s CIO Hiring plans look upbeat with CIO looking to replace consultants and contractors with full time employees. There is general consensus that they will be hiring next year at this time.

IT Hiring Trend

The number of new jobs created continues to be lower than the number of jobs needed   for the  US economy to stay even with adult population growth. The Labor Department has reported the economy added added 163,000 in July up from  80,000 in June ( 69,000 in May) . Unemployment is highest in Nevada  and California.     

IT Job Market Employment Trends

For the first time in several months there were gains in the total number of jobs in all sectors of the IT job market. There was a net increase of 20,400 seasonally adjusted IT jobs in June  according to the latest BLS data. There was an improvement in computer system  design and related services accounted of 10,400 jobs; 7,000 in telecommunications, 1,900 jobs in Data Processing,  hosting and related services; and another 1,100 jobs in other information  services.

IT job market improves - hiring up

IT job market improves - hiring up          

Health Care vs. Financial Services Job Growth

Heath Care Job Growth

Employment is on the rise in Healthcare IT and spending will reach $40 billion by the end of this year. Much of that growth will come from spending on electronic health record (EHR) systems, mobile health applications and efforts to comply with new government standards. Boosted by increased spending on healthcare software — which is needed for the rollout of EHR systems — the U.S. healthcare IT market is expected to grow at a rate of about 24% per year from 2012 to 2014, the study said. Spending on healthcare software rose 20.5% in the past year, from $6.8 billion in 2010 to a projected $8.2 billion this year. Recent mergers and acquisitions in the healthcare IT market also point to growing private-sector interest in software, which will see sales grow at rate of more than 30% annually from 2012 to 2014.

Industries and occupations related to health care, personal care and social assistance, and construction are projected to have the fastest job growth from now until 2020. Total employment is projected to grow by 14.3 percent over the decade, resulting in 20.5 million new jobs. Despite rapid projected growth, construction is not expected to regain all of the jobs lost during the 2009-12 recession. The bad news is that the number of individuals dropping out of the job market continues to increase and the Labor Participation Percentage continues to fall.

Labor Participation Pct


Labor Force Participation Rate Drops

Not a good sign as more workers leave the job market

In July of 2012 the work force participation percentage of all employees (male and female) went down to 63.7% according to the BLS data. That low level has not been seen in over 40 years. That is not a good sign for the overall strength of the recovery.

Work Force Participation

Assuming that there is a significant downsizing of the military and there are no new programs to get jobs for soldiers coming home then the true unemployment levels will not go down for some time.