IT job market continues to stagnate in February as CIOs are reluctant to hire new employees in a slow growing economy
The overall unemployment rate rose slightly to 6.7% and the job market participation rate remained at 63%. There was an increase of 5,000 new IT jobs in February as measured by the BLS data that was just reported. In the last 3 months 13,500 IT jobs were added and in the last 12 months 78,400 jobs were added. The CEO of Janco Associates, Mr. Victor Janulaitis said, "The employment data for IT professionals is not as bad as it has been. Some new jobs are been created. However they are in selected technical areas like security and BYOD support. " Janulaitis added, "Based on interviews of 96 CIOs in the last two weeks, we see that CIOs have become more a little less cautious as they think that perhaps by the 2nd or 3rd quarters of this year that they may expand their staffs some. The CEO added, "Even with that glimmer of hope, IT Pros are continuing to feel the brunt of the hiring slow down as the average salaries they command are 'easy targets' for those trying to contain costs. " In Janco January 2014 IT salary survey we found that the average compensation for all IT Professionals is $79,289 without the cost of major benefits like health insurance and company contribution to 401Ks. "
From a review of the latest BLS data, Janco has found that there was a net increase of 13,500 jobs in the last three months. The three month moving average shows a slight uptick in the number of jobs added due to a positive revision in the of jobs added in January from a loss of 1,400 jobs to a gain of 3,400 - a 4,800 swing.
The labor market participation rate remains at a 30 year low of 63%. There are 3,300,000 fewer individuals working than in 2007. The CEO said, "The over-all labor participation rate continues to be lower this year than and other prior year. This alone will make it a very difficult process and does not bode well for IT expansion and hiring. "
Health Care vs. Financial Services Job Growth
The health care job market continues to be a bright spot on the overall US labor market and is one area where IT Pros can go with the flow and find job opportunities. The implementation of Electronic Patient Records is one of the driving forces in the increased opportunities in this area. The chart below depicts the total labor market in this sector.