IT Job Market and US National Employment Data
IT job market prospects are tied to the US national employment data -- Janco predicts that 85,100 net new IT jobs will be created in 2018
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 will be greater in 2018 than the 60,400 new jobs added in 2017
The number of IT Jobs added in 2016 was 71,900 and 112,500 in 2015 new jobs. 2017 was a disappointment with a little under 60K net new IT Jobs created.
However, with the existing business climate in the US we forecast that 82,700 new IT jobs will be created.
There seems to be an upward trend in the number of IT jobs created.
When Final December YTD 2017 is compared with December YTD 2016 there were 13,200 fewer new IT jobs created in 2017 than 2016. Much of that is due to an adjustment in the Telecommunications job market.
As of the first quarter of 2018. the IT job market growth has started off by creating 32,700 new jobs more than the same period last year.
Hiring Plans for IT Professionals
In the fourth quarter of 2017 many CIOs were holding back on hiring to fill new positions for IT Pros. That has changed with the passage of the recent tax legislation business are much more optimistic. The hiring picture is much more optomistic 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 aout Career Opportunities
U.S. Department of Labor National Employment Report
IT job market size increased in May with 6,500 new jobs and 62,800 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 last year.
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. The data on the number of IT jobs created in the prior two months was increased by the BLS.
CIOs say short term hiring and long term prospects are improving
Job growth in the IT job market is on an upward trend.
The three month moving average for IT job market growth trend for IT Professionals is flat. We expect that to change in the next two quarters.
Janco's CIO Hiring Plan Forecast are up. 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 6,500 jobs last month. Over the past 12 months 62,800 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 continue to 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 20,000 in the last 12 months.
Prior Months IT Job Market Changes Adjustments.
Adjustments to the number of IT jobs created were made by the BLS for the prior two months. A total of 300 job were subtracted from the BLS data for the prior two months.
Labor Force Participation
The work force participation percentage of all employees (male and female) is 62.7%. There still are 95,689,000 (unadjusted) people who are not in the labor force.
The Labor Force Participation percentage has stabilized at one of it lowest points in the last 50 years. The trend line is positive.
Labor Participation Rate in the low 60's
95.6 million people in the U.S. are not working - see reasons why not working
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. In 2017 IT job growth has been positive 11 out of 12 months. The only down month can be attributed to hurricanes and massive brush fires.
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 May 2018 there were 2 states with an unemployment rate of over 5.5%. That is one more than in the prior month.
States with the Lowest Unemployment -- Full Employment States
Several states have very low unemployment rates. In May there were 26 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.