IT Job Market and US National Employment Data

2013 IT Salary SurveyIT 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.

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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 growth meets Janco prediction that it will grow approximately by 77K jobs in 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.  

Anual IT Job Market Growth

Based on our analysis of the current IT job market growth data, we forecast approximately the same number of IT jobs will be created in 2017 as in 2015.

Forecast of Annual IT Job Market Growth

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.

IT job market growth by class of jobs

When 2017 is compared with 2016 there were 18,100 fewer new IT jobs created.  

YTD IT Job Market growth

Hiring Plans for IT Professionals

In the second quarter of 2017 many CIOs are holding back on hiring..  

Future IT Hiring Plans

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

Jobs in 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 May with 1,600 new jobs and 68,500 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.

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.

Year to year comparison of IT job market growth

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

IT Job Market Gains

The three month moving average for IT job market growth trend for IT Professionals dipped into the negative with the recent adjustments by the BLS.


Moving average of IT job market growth

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 Hiring TrendJobs Added

IT Job Market Employment Trends

The IT job market shrank by 1,300 jobs last  month. Over the past 12 months 55,600 IT jobs were created according to the latest BLS data. Telecommunication continues to be a drag on the job market for IT Pros. In addition the unusual weather in the Mid-West and East Coast in March, just when the BLS was collecting its data, resulted in lower than expected employment numbers. Data captured later in the month showed significantly higher employment.

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.

Major adjustments to the number of IT jobs created were made by the BLS for the prior two months reducing the number of additioal jobs by 13,300.

IT job market improves - hiring up

Labor Force Participation

The work force participation percentage of all employees (male and female) is 63%. There still are 94,771,000 (unadjusted) people who are not in the labor force.  It is a rise of 200,000 from March

Work Force Participation

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.

US unemployment rates

Since the change of administrations, job growth seems to be on an upward trend. It is only three months of data and the real trend will not be known for several months.

Initial number of new jobs reported

 

State Unemployment

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.  

High unemployment states June and AApril 2017

In May of 2017 there were 4 states with an unemployment rate of over 5.5%. That is one less than in the prior month.

High unemployment states April 2017

States with the Lowest Unemployment -- Full Employment States

Several states have very low unemployment rates.   In May there were 21 states that we considered high unemployment states.

Full employment states July 2016

States with low unemployment rates

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

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.  

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.

H-1B Visas

 


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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.