Will the Upturn in the Economy Mean More Jobs?
Will the Upturn in the Economy Mean More Jobs? - The U.S. Commerce Department stunned almost everyone with its announcement of a 7.2 percent growth in the gross domestic product for the third quarter - significantly higher than the anticipated 5.8 percent.
Looking deeper into the numbers, Business Week Online reported that the increased spending was concentrated in the business sector. And while consumer spending fell slightly short of the forecast, the report concluded that, “even if consumers - who kept the economy growing while Corporate America pulled in its horns - aren't willing to open their wallets as wide as some economists expected, businesses may finally be ready to pick up the spending slack. ”
Is this optimistic news translating into jobs for the sluggish information technology industry? Are employers - especially those in the small and medium business (SMB) sector - finally ready to replace some of the jobs that were axed from budgets in recent years?
Victor Janulaitis, CEO of recruiting firm Janco Associates, reports an up-tick in spending across the IT industry, noting that his firm is seeing an increase in both demand and salaries for AS/400 and Linux/Unix professionals. “The demand for AS/400 people is increasing, and we're beginning to see people move around,” he says. “Estimated compensation is up 3-4 percentage points this quarter, and hiring budgets are up 5-10 percent. The midrange market in general is starting to look a little better. ”
Janco's survey of over 70 technology positions is based upon responses given in extensive Internet polling as well as a “survey of surveys” that included data from across the United States and Canada.