IT Job Market and US National Employment Data
IT job market prospects are tied to the US national employment data
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 its 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 and hiring trends for IT professionals.
You can get a free copy of the full survey if you provide 10 valid data points and use a corporate e-mail address. Free e-mail accounts like gmail or yahoo do not qualify as we have no way to verify the accuracy of the data provided.
Janco predicts that IT Job Market will grow approximately by 136,500 jobs in 2017
The number of IT Jobs added in 2016 was 71,900 which was the less than 2015's 112,500 new jobs. That level of growth is barely enough to cover the graduates from US universities and trade schools. Based on our analysis of the current IT job market growth data, we forecast 136,500 IT jobs will be created in 2017.
That is based on our forecast of an average of 6,500 new IT jobs to be added each month.
The end result will be that more IT jobs will be created in 2017 than in the past 10 years.
The trend in the creation of new IT jobs Janco's continues to point downwards. Currently there is 0.07% growth rate (moving average) in the number of IT jobs created. This is a slight move down from the 0.33% growth rate moving average from last month.
When 2016 is compared with 2015 there were 40,600 fewer new IT jobs created.
Hiring Plans for IT Professionals
In the first quarter of 2017 many CIOs are looking to increase IT staff management and capacity.
Based on Janco's interviews and survey data the following positions are in high demand.
Approximately 85,000 undergraduate degrees are issued for majors in Information Technology. Read on...
U.S. Department of Labor National Employment Report
IT job market size increased in December and grew by 6,000 new jobs and 71,900 jobs added in the last 12 months -- is lower than reported for the same 12 months in the prior year.
The BLS reclassified jobs that are in the Telecommunication to Computer Systems Design and related services which is why the individual classifications show a large change in November of last year. However based on our analysis they balance each other out.
When compared with the prior year there were 40,600 fewer jobs created this year versus last year. In addition, in interviews with both CIOs and HR professionals since the election, Janco has found CIOs to be more optomistic about the probability of increased IT spending and hiring.
CIOs say short term hiring and long term prospects are improving
Job growth in the IT job market has been flat for the last several months
The three month moving average for IT job market growth trend for IT Professionals shows some slight improvment. However, in interviews after the election many CIOs and CFOs are optomistic that the overall business climate will improve.
Janco's CIO Hiring Plan Forecast continues to be mixed. Many IT organizations have open requisitions for IT pros that they are not able to fill because of the lack of good candidates.
IT Job Market Employment Trends
The IT job market grew last month by 6,000 jobs last month. Over the past 12 months 71,900 IT jobs were created according to the latest BLS data. Telecommunication continues to be a drag on the job market for IT Pros.
Prior Months IT Job Market Changes Adjustments.
Major adjustments to the number of IT jobs created were made by the BLS for the prior two months.
Labor Force Participation
The work force participation percentage of all employees (male and female) is 62.7% - one of the lowest levers (not good) in 38 years. There still are just 95,779,000 (unadjusted) people who are not in the labor force. That is two months in row were more people have left the labor market.
There are rumblings that a recession is just beyond the horizon are getting louder. Reasons why people are not in the labor force are varied.
US National Employment
The US National unemployment rate has fallen from its peak levels in 2012 to the current levels. However this needs to be tempered with the fact that the labor market participation rate remains at the lowest it has been in over 30 years.
The number of total IT jobs initially reported as added in December was 6,000. However there still a downward basis in the size of increase in the IT job market. The total labor market in has show a growth for four months in a row.
The National unemployment data provides 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.
In October 2016 there were 4 states with an unemployment rate of over 6% versus 8 in September 2016 with over 6% Unemployment.
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 October that picture has changed and now there are only 11 full employment states.
Of the 11 full employment in September, none had higher employment rates that the same month last year.
US Federal Government Compensation Cap
US Federal Regulations set limits on how much companies can get reimbursed for the salaries they compensate their management. Companies can pay more, but cannot charge the government for the amounts paid above the limit. For many years, the caps only applied to the top 5 executives, but the rule changed in December 2011, and now the cap applies to all employees, not just the top 5 executives.
Offshore outsourcing companies continued to make up the majority of the top H-1B visa applications according to new government data. These offshore firms have been adding employees by the thousands as their revenues increase. Infosys (India based) led the list in 2014 with 23,759 visa applications with a median salary for those positions $72,254, edging out Tata (India based) which had 14,098 visa requests-with a median salary for those positions $66,600.
Both of those salaries were well below the median salary ($81,583 in 2014) for IT potions. The overall median salary for the top 30 enterprises that filed for H-1B visas was $77,027.
If you provide ten or more job title data points you will qualify to get a free copy of the full study. If you have any questions on the survey send us an e-mail at Janco Associates, Inc.