IT Hiring Slows -- Demand is Down

IT job market monthly growth has trended down for the two months. Budgeting is well underway and many CIOs want to hire but do not have the go ahead from executive management to increase spending

IT Hiring Slows -- Demand is Down - The latest BLS data shows a slight increase in the number of new IT Jobs - 7,000 jobs added in August. The CEO of Janco Associates, Mr. Victor Janulaitis said, "Based on our interviews with over 105 CIOs in the last 30 days, we concluded that CIOs want to hire but are being direct to hold off by management. In addition, as part of the 2014 budgeting process they are being 'constrained' in the number of initiatives that they can budget for in the coming year. Most of the CIOs we interviewed do not feel they will be able expand staff size over the next 12 months. "  In addition Janulaitis says, "Over two thirds of the CIOs interviewed say that the network infrastructure, which many have not been able to update because of budget limitations, they have in place is making it more difficult to implement new technologies without significantly increase costs. " He added, "…they all need larger budgets and staff to deal with this. "

Changes in the number of net IT Jobs created or lost

This chart is not the originally published one, rather it is updated with the current data based on the analysis by Janco Associates, Inc. For the latest IT Employment Data click here.

Moving average of IT job market growth
A robust hiring trend for IT Professionals - the recovery is slowing however, there are a number of jobs unfilled by IT Pros. The primary culprit is the lack of qualified individuals to fill the open positions.
Unfilled IT Jobs

Based on BLS data analyzed by Janco over the last 12 months on average over 200,000 IT jobs remain unfilled due to a lack of qualified individuals.

The three month moving average points to a mixed hiring environment. From a review of the latest BLS data, Janco has found that there was a net increase of only 7,000 jobs in July - the second month in a row with slowing in IT hiring. There was an improvement in computer systems design and related services of 2,400 jobs (versus 3,400 added in July); data processing and hosting related services lost 100 jobs (versus 1,600 jobs added in July); Telecommunications gained 2,700 jobs (and 3,200 in July); and other information services gained 2,000 jobs (versus 3,400 IT jobs in July).

The labor market participation rate fell .2% to 63.2%. There are 3,200,000 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.

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

Where have all the employees gone? Is the population being condition
to not work and stay at home?

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

100.11 million people in the U.S. are not working - see reasons why not working. Since the shutdown the labor force participation rate has fallen almost 2% points.

Change in IT job market size
The latest data for more read on...
Data points to robust hiring of IT Professionals with 71.9K jobs filled in the last 3 months.
Note - that includes the adjustments by the BLS to the initially reported data.

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.

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