IT Job Market and 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.
IT Job Market growth meets Janco prediction that it will grow approximately by 12K jobs in the last two months of 2017 - a reduction from earlier forecasts
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 approximately fewer IT jobs will be created in 2017 than the last four years..
The trend in the creation of new IT jobs Janco's slowed in March. Based on the data, we feel that the unusual winter weather in the Mid-West and East dampened the number the numbers reported by the BLS.
When 2017 is compared with 2016 there were 44,200 fewer new IT jobs created. Add to the the impact of the hurriances on the east coast and the fires on the west coast and prospects are not as bright as they were earlier this year.
Hiring Plans for IT Professionals
In the fourth quarter of 2017 many CIOs are holding back on hiring to fill new positions for IT Pros.
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 October with 200 new jobs and 36,300 jobs added in the last 12 months.
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.
With the added impact of the multiple hurricanes and fires in the west, in our professional opinion we believe that employment in the IT market will slow.
In interviews with both CIOs and HR professionals since the election, Janco has found CIOs to be more optimistic 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 is flat to down.
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 by 200 jobs last month. Over the past 12 months 36,300 IT jobs were created according to the latest BLS data. Telecommunication continues to be a drag on the job market for IT Pros.
Hurricanes, fires, and the mixed prospect on new tax legislation will both dampen the long term prospects for the creation of new IT jobs.
It is very clear that telecommunication professionals are in a shrinking job market -- there is no end in sight. There has been a reduction in that job market by 27,400 in the last 12 months.
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 63.1%. There still are 94,539,000 (unadjusted) people who are not in the labor force.
The Labor Force Participation percentage has stabalized at one of it lowest points in the last 50 years.
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.
Since the change of administrations, job growth seems to be on an upward trend. Well over 1.72 million jobs have been added in the 11 months since the election.
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 of 2017 there were 3 states with an unemployment rate of over 5.5%. That is the same as in the prior month.
States with the Lowest Unemployment -- Full Employment States
Several states have very low unemployment rates. In October there were 27 states that we considered high unemployment states.
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.