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.

 

10 findings on highly paid CIOs a

10 facts on highly paid CIOs

The 36 highly paid CIOs have average base salary is $510,000 with total average compensation of $3.6 million.

Janco has just updated its list of highly paid CIOs for the last year. The data is from public sources including SEC fillings.  The data shows that this group of individuals is not only very diverse but also completely integrated in the executive management planning and operational teams.

Interesting findings include:

  1. One quarter of this group of CIOs are women.  That is up from less than 10% in 1999.
  2. Just under 1 in five are minorities.  This group of CIO is racially diverse and are all well educated
  3. The median base salary $700K while the average base salary is $510K/
  4. The median total compensation $3.3 million and average total compensation is $3.6 million.
  5. All of the CIOs make most of their total compensation from performance bonuses and company stock.
  6. The average tenure is well over 60 months and these individuals have the probability of retiring from these jobs versus being terminated or leaving for greener pastures.
  7. All of the positions are Vice Presidents and most are Executive Vice Presidents. All have either CIO or CTO in their official titles.
  8. Over 60% have been in IT most of their careers. and have advanced to this position.
  9. Over 40% have operational responsibility for areas beyond IT and technology.  Technology is integral to the day-to-day operations
  10. All are integrated into the executive and operational management of the enterprises they are in. Typically IT is not in a “silo” isolated from the rest of the company.
toppaidcios-36
Highly paid CIOs – Public Companies

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.

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Labor Force Participation rate not very promising

Labor Force Participation shows that over 95 million are not in the labor force

Labor Force Participation - 10 year history
Labor Force Participation – 10 year history

The labor force participation rate is the percentage of the civilian non-institutional population 16 years and older that is working or actively looking for work. Since 2008 the participation rate has plummeted. Some of the drivers of that fall are

  • Baby Boomers – The movement of the baby-boom population into age groups that generally exhibit low participation.
  • Teenagers – Teenagers experienced the largest drop in participation, which coincided with a rise in their school enrollment rate.
  • Young Adults – Young adults 20 to 24 years also showed a decline in labor force participation, but the decrease was not as steep as that for teenagers.
  • Working Age Women – The labor force participation rate of women 25 to 54 years also fell, with the decrease more pronounced for women who did not attend college.
  • Working Age Men – The labor force participation rate of men 25 to 54 years continued its long-term decline. As in the past, the decrease in participation among men with less education was greater than that of men with more education.

On the plus side, labor force participation rates of men and women 55 years and older rose from 2000 to 2009 and has subsequently leveled off.

IT Job Market and US National Employment Data – On a monthly basis – typically on the first Friday of the month – Janco publishes an analysis of the IT Job Market utilizing the BLS labor data and it proprietary data. See the latest press clipping go to Janco’s Press Clippings and eJobDescription.com.

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.

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Digital Brand Manager – Technology skills required for many mainstream roles

Digital Brand Manager hot new job

Digital Brand Manager commands a $130K to $140K starting salary

The Digital Brand Manager is responsible for the total digital image that a brand and/or enterprise presents to the outside world. They develop, implement and managing branding and marketing campaigns that promote a company and its products and/or services. He or she plays a major role in enhancing brand awareness within the digital and social networking space as well as driving website traffic and acquiring leads/customers.

As such is responsible for digital consumer experiences across the entire enterprise and its operations. The Digital Brand Manager helps a company drive growth in its brands and product lines by converting traditional physical brand management process to social media ones, and over-sees the rapidly changing digital sectors like mobile applications, social media and Internet based marketing. The Digital Band Manager is responsible for executing and evolving the enterprise’s Social Media Strategy based on performance & emerging company/consumer needs. This includes but is not limited to: channel roles, content strategy, and Social Persona Development.

Janco has created a full job description that is over 1,700 words and 6 plus pages.

The Digital Brand Manager also identifies and evaluates new digital technologies and uses Web analytics tools to measure site traffic to better optimize marketing campaigns, email marketing, social media and display and search advertising.

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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.

H-1B Makes up for poor educational system

H-1B Makes up for poor educational system

H-1B Makes up for poor educational system< according to industry leaders.

Massachusetts law prohibits employers from asking about applicants’ salaries

Massachusetts law prohibits employers from asking about applicants’ salaries

Massachusetts has enacted the nation’s first law prohibiting employers from asking about applicants’ salaries before making employment offers.

The new state law, which Republican Gov. Charlie Baker signed on Aug. 1, will require employers to offer a compensation figure upfront, rather than relying upon what the applicant made at a previous position. The requirements will not go into effect until July 1, 2018. Job applicants will not be compelled to disclose past or current salary or wages, but can still volunteer past salary information.

IT Hiring IT Job Descriptions IT Salary SurveyIT Salary SurveyJob Descriptions
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The first-of-its-kind bipartisan law, S. 2119, was heralded by supporters as another avenue to strengthen equal pay laws. The law’s proponents said banning pre-offer wage disclosures addressed the subtle factors that can affect compensation decisions. As well, supporters said that using salary history as a means of determining how much a potential hire could be paid was unfair to women, arguing that it allowed a continuation of a pattern that statistically paid them less.

Another provision of the law requires that women receive pay equal to that of men in the same position, as well as men who perform work “comparable” to them. The Massachusetts law incorporates a wider standard than many other state equal pay acts. Other recently passed state equal pay laws, such as California’s 2015 equal pay measure, likely will depend on the courts to practically define “comparable” worth in the workplace.

Finally, the new Massachusetts law also addresses salary transparency. Employers will not be allowed to prohibit employees from informing others how much they are compensated. Supporters argued that transparency for wages would better identify gender pay disparities.

The bill passed the state legislature unanimously and had the support of several business organizations, including the Greater Boston Chamber of Commerce.

Similar attempts at introducing novel procedures to address equal pay have inspired copy-cat legislation in other state legislatures. Several states this year attempted to pass some form of equal pay legislation but the Massachusetts action is the first one to become law.

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 Spending Flat for 2016

IT Spending Flat for 2016

IT spending flat for 2015 as compared with 2015 according to a report published last week.  Interestingly the two areas that saw the greatest reduction in spend were equipment (down 5.3% on top of a reduction of 4.6% in the prior year) and communications (down 1.4%  and 9.2% in the prior year.

Cumulatively that is over a 10% reduction in both areas.  Now when you consider that planning is going on right now for 2017 – what does that imply.

IT-Spending Flat

First, there will be pressure for “new” hardware as equipment has not been replaced that is approaching the end of its useful life.  Second if that happens there will be further pressure to keep IT salaries down as well as head count.

With that in mind, Janco is in the process of forecasting the net number of jobs in the IT job Market for the remainder of this year.

Last month the forecast was that there would be 76,500 new jobs created this year for the domestic IT job market.

IT Job Market Forecast - June 2016
Janco’s IT Job Market Forecast – June 2016

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Full employment states unemployment rate rises

Full employment states lose ground

Full employment states lose ground as 9 of the 15 states have higher unemployment rates in June than in May.  They are : Iowa, Utah, Kansas, Colorado, Maine, Hawaii, Vermont, New Hampshire, and South Dakota.

States Full Employment Compare May versus June
Full Employment States – June 2016

That is not a good omen for the rest of the year as we move into the months where unemployment tends to rise.

Add on to that some of these states are “contested” in the election that is coming up shortly

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The National Unemployment Rate is pro-ported to go but the participation rate is the lowest it has been in the last 30 years.  Some analysts say the true unemployment rate  is closer to 15% than 5%.

National Unemployment rate
Labor Force Participation Rate

IT Job Market Employment Trends

The IT job market grew last month by 34,200 jobs last month. This more than negates the loss of 19,400 reported for May (adjusted from an orginally reported loss of 27,700 last month). Over the past 12 months 97,200 IT jobs were created according to the lastest BLS data.

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.

State unemployment numbers mask correct unemployment rate

State unemployment numbers mask correct unemployment rate

State unemployment numbers mask correct unemployment rate as they do not adjust for the number of individuals who have dropped out of the labor market.

State unemployment
State unemployment number do not reflect the number of people who have dropped out of the labor market.

In May 2016 there were 8 states with an unemployment rate of over 6% versus 7 in February 2016 with over 6% Unemployment. Alabama and Illinois have unemployment go up in the past 12 months as opposed to the other 4 states where unemployment levels have improved.

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South Dakota and New Hampshire had the lowest jobless rates in May, 2.5 percent and 2.7 percent, respectively. The rate in Arkansas (3.8 percent) set a new series low. Alaska had the highest unemployment rate, 6.7 percent. In total, 16 states had unemployment rates significantly lower than the U.S. figure of 4.7 percent, 15 states and the District of Columbia had higher rates, and 19 states had rates that were not appreciably different from that of the nation.

IT Job Market Shrinks

Job Market Shrinks for IT Pros

IT Job market shrinks in May.  Approximately 27,700 jobs disappeared, with most of those jobs being related to telecommunications.

IT job market shrinks
IT jobs disappear – with 37,200 in the Telecommunications field

That along with a comparison with the number of IT jobs created in 2015 paints a fairly bleak picture.

IT job market growth slower than prior year
IT job creation fall behind 2015 levels – 57,300 fewer new jobs this year than last

There is an acceleration in the rate of slowdown in the IT Job Market. If this continues, as we think it will, there is a probability that there could potentially be a net decrease in the size of the IT Job Market in 2016. Janco has already lowered our best case forecast for net new IT jobs for the balance of this year and have reduced our prior forecast of 87,700 to 40,300.

This is the worst employment market in the past 15 years. Given that is the case why are H-1B visas continuing to be issued for IT professionals?