IT Job Market and US National Employment Data

IT job market prospects are tied to the US national employment data -- Janco predicts that approximately 62,500 IT jobs will be lost in 2020

IT Job DescriptionsIT 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.


NOTE: The graphic below is updated with each new IT Salary Survey. The chart compares the data from the period of the survey to prio period.

Latest Median IT Salaries Updated Every Six Months

Latest Mean IT salaries
For the latest compensation data go to the current IT Salary Survey


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Covid-19 and related shutdowns will result in the loss of over 62,500 IT jobs by the end of the 2020

With the existing business climate in the U.S., we forecast that as total of approximately over 62,500 new IT jobs will be lost in calendar year 2020. That will be as a direct result of Covid-19 and its related shutdowns.

Growth of IT Job Market (updated)

In 2019 90,200 new IT jobs were created. Janco revised it estimates for the number IT jobs lost in 2020 as a result of Covid-19 continued shutdown to 62,500.

IT Job Market Forecast

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

YTD IT Job Market growth

For the first time since the start of the pandemic, there has been a net gain in the number of IT job created.

Moving average of IT job market growth
The moving average was impacted by several adjustments
in the number of new jobs and COVID-19 reported
by the BLS.

Historical IT Job Market Growth

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

Anual IT Job Market Growth

The rate of hiring is flat for IT Pros due to Covid-19. Many IT organization now are focusing on getting back to normal operations.

Currently, the economy and Covid-19 are the primary drivers for IT Job Market growth. Prior to Covid-10, companies were significantly more bullish with the tax cuts and fewer regulations. . That the size of the IT job market to just over 3.5 million positions.

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.

COVID and the shutdown of the US market has halted hiring for IT professionals. Hiring will be spotty at best until the re-opening of the US and world economies.

Future IT Hiring Trends by CIOs
With increased Covid-19 infections reported and election looming in the fall of this year, many enterprisesare unsure of the overall impact of the elections will be. In the short term untill the US market re-open hiring has been put on hold by most organizations


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 with 12,200 jobs added but with a cummulative loss of 61,100 jobs lost in the last 12 months - erasing all of the gains 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.

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In interviews with both CIOs and HR professionals since the election, Janco has found that hiring of IT professionals has all but stopped.

YTD IT Job Market growth

For the first time since the start of the pandemic, there has been a net gain in the number of IT job created.

CIOs say short term hiring are poor at best

Job growth in the IT job market is on the positive side for the first time since the start of COVID-19pandemic.

IT Job Market Gains

The three month moving average for IT job market growth trend for IT Professionals shows a positive trend. 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 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.

Future IT Hiring Trends by CIOs
With increased Covid-19 infections reported and election looming in the fall of this year, many enterprisesare unsure of the overall impact of the elections will be. In the short term untill the US market re-open hiring has been put on hold by most organizations


Jobs AddedRead On Unemployment by State...

IT Job Market Employment Trends

The IT job market lost 10,900 jobs last month due to COVID and the shutdown. Over the past 12 months 66,600 IT jobs were lost according to the latest BLS data. Telecommunication continues to be a drag on the job market for IT Pros as 26,100 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.


Updated with Latest Data - Includes second wave Covid-19 shutdown

IT Job Market Size


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

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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 2,600 job were removed 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 61.4%. There are 100.67 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

Marked Improvement with partial re-opening

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

100.660 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 had 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 caused a loss of over 30,000,000 jobs in the entire US Labor Market.

Initial number of new jobs reported

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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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.