IT Job Market and US National Employment Data

IT Job Descriptions2013 IT Salary SurveyIT job market prospects are tied to the US national employment data -- Janco predicts that approximately 95,400 net new IT jobs will be created in 2020

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.

Recent IT Job Market size

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.

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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 grew in size by 90,200 net new jobs in 2019

With the existing business climate in the U.S., we forecast that as total of approximately over 95,400 new IT jobs will be created in calendar year 2020. That will be in spite of the Covid-19 shutdown.


Growth of IT Job Market (updated)

In 2019 90,200 new IT jobs were created. Janco revised it estimates for the number additional new IT jobs to be created in 2020 as a result of Covid-19.

IT Job Market Forecast

Data complied and forecast updated by Janco Associates as of March 2020


YTD IT Job Market growth

Moving average of IT job market growth
The moving average was impacted by the downward
adjustments (Feburary 2020) in the number of new jobs and
Covid-19 reported by the BLS.

Historical IT Job Market Growth

91,900 new IT Jobs were created in 2019. In 2018, 104,600 new IT Jobs were created and 58,700 in 2017. That dramatic increase is one of the primary reasons that total compensation has risen for most IT professionals.

Anual IT Job Market Growth

The rate of hiring is still high for IT Pros. The change in that rate of increase continues to be on an upward trend. Many IT organization now are focusing on the integration the new hires into their organizations.

The turnaround in the economy was the primary driver, as companies were significantly more bullish with the tax cuts and fewer regulations. . That brings the size of the IT job market to just over 3.6 million positions - and growing.

IT Job Market Segmentation
See IT Job Families

Hiring Plans for IT Professionals

Many CIOs are beginning to be concerned about the economy. With the recent moves in the Stock Market and the slowing of China's economy there is a possibility that hiring may slow for IT professionals. The hiring picture is much more optimistic for IT Pros. However, demand for contractors and consultants is slowing due to economic uncertainty.

For the first time in several reporting periods, there now are more open positions than qualified individuals to fill them. The last time that occurred was before the dot com bust.

Future IT Hiring Trends by CIOs
With the Covid-19 and election looming in the fall of this year, many enterprises
are unsure of the overall impact of the elections will be. However, they
are optiomistic with the the implementation of the new trade deals.


Based on Janco's interviews and survey data the following positions are in high demand.

Positions in demand

Approximately 85,000 undergraduate degrees are issued for majors in Information Technology.

Read on about Career Opportunities

U.S. Department of Labor National Employment Report


IT job market size increased in March with 6,700 new jobs and 103,800 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.

Net change in IT job market growth

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.

YTD IT Job Market growth

CIOs say short term hiring and long term prospects are improving

Job growth in the IT job market growth increased again in March despite the Covid-19 shutdown. There has been a slowing in the rate of increase and salaries increases have slowed as well.

IT Job Market Gains

The three month moving average for IT job market growth trend for IT Professionals is up. That metric is the change rate in increase and/or decrease in the total number of new hires. What it means is that CIO and HR recruiters are continuing to hire at a rate that is higher than in prior months. When that metric falls below zero then hiring demand will fall back to previous levels.

 

Moving average of IT job market growth
When Communications jobs (shrinking source of IT Jobs)
are excluded, there is a clear trend for IT Job Market
growth across all other sector of the IT Job Market.
Covid-19 has, as of yet has not adversely impacted
overall hiring of IT Pros

 

Janco's CIO Hiring Plan Forecast, for the time being, remain high. Many IT organizations still have open requisitions for IT pros that they are not able to fill because of the lack of good candidates. The number of positions filled at the staff level in prior months was high and IT departments are focusing in on absorbing new IT pros that were hired and are adding as many new positions in the short term.

Future IT Hiring Trends by CIOs
With the Covid-19 and election looming in the fall of this year, many enterprises
are unsure of the overall impact of the elections will be. However, they
are optiomistic with the the implementation of the new trade deals.


Jobs Added

IT Job Market Employment Trends

The IT job market grew by 6,700 jobs last month. Over the past 12 months 103,800 IT jobs were created according to the latest BLS data. Telecommunication continues to be a drag on the job market for IT Pros as 24,600 jobs were lost in the last 12 months. This loss is mostly due to automation and consolidation with the industry of telecommunication functions.

Telecommunications positions now make up 19% of the total IT Job Market. Down from a high of the 22% in prior years.

On the bright side, the pending trade agreements are raising expectations that the economic prospects are good for the news several quarters. However, it is not clear what the overall impact of Covid-19 will be in the near-term.

IT job market improves - hiring up

It is very clear that telecommunication professionals are in a shrinking job market -- there is no end in sight.

IT job market improves - hiring up

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 7,500 job were adjusted downward from the BLS data previously reported.

IT job market improves - hiring up

Labor Force Participation

The work force participation percentage of all employees (male and female) is 62.7%. There are 97.2 million people who are not in the labor force. The Covid-19 shutdown's impact can clearly be seen in this data.

Work Force Participation

The Labor Force Participation percentage has fallen dramatically as a result of the Covid-19 shutdown..

Labor Participation Rate in the low 60's
Covid-19 Impact US Labor Market

Labor Force Participation rate stabilized at lowest level in the last 50 years

95.393 million people in the U.S. are not working - see reasons why not working. Over the last 36 months the overall trend for the Labor Participation rate is continual increase.

The overall unemployment rate rose while the labor participation rate rose is improving. That is a very favorable sign. More people are entering the labor market.

However, 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 50 years. The increase is due to the Covid-19 shutdown.

US unemployment rates

The Covid-19 shutdown has had a dramatic impace with over 700,000 jobs lost in the month of March. In our opion we thing this job loss in the overall number of jobs will continue for some time..

Initial number of new jobs reported

State Unemployment

This data does not reflect the impact of the Covid-19 shutdown

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. This report is just before the shut down due to the coronavirus.

In February 2020 (Before the coronavirus) states unemployment rates that were high (over 5.4%) on two states Alaska and Mississippi.

High unemployment states Current Month vs prior Month

In February 2020 (Before the coronavirus) there were 2 states with an unemployment rate of 5.4% or above. That is one less than last month.

High unemployment states Current Year versus prior year

States with the Lowest Unemployment -- Full Employment States

Several states have very low unemployment rates. In December there were 39 states that we considered high unemployment states. Before the shutdown the unemployment numbers were improving almost every state.

Full employment states Current Year versus prior year

States with low unemployment rates Current Month vs prior Month

H-1B Visas

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.

In 2018 Infosys still lead the pack, but with fewer employees than in 2014. The median salary they paid was $82,993 -- almost $10,000 more than in 2014.

Over $15 billion dollars were paid to H-1B visa holders in 2018 with a median salary of $91,604.04

The median slay paid to the 2018 visa holders as lower than the median salary paid to all US IT professionals. That was $93,077.

H-1B Visas

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.

Federal Govement Compensation Cap


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