Janco Reports 17,000 New IT Jobs Created in May
IT Job Market continues to grow – clouds appear for the 4th Quarter
Janco forecasts that over 191K new IT Jobs will be added by the end of the year
Park City, UT – Janco Associates, Inc. – Janco reports that the IT Job Market continues to grow but at a slower pace. Over the past year over 20K new positions were added each month. All signs point to that growth continuing but at a slower rate of 13K to 14K new jobs. Janco forecasts that over 190,000 new IT jobs will be created by the end of the 4th quarter.
The CEO of Janco, M. Victor Janulaitis said, “In an analysis of the latest BLS data we have found the number of jobs created for IT professionals continues to grow. However, there are some clouds for IT pros' job prospects six to twelve months in the future.” He reinforced, “The primary driver is inflation and high energy costs which is causing concerns that the economy will slow later in the year and potentially have an extended recession in 2023.”
IT Job Market - April 2024
There has been a major shift in the creation of new IT Jobs - AI and economic slowing are the drivers. The IT Job Market shrank by 48,600 jobs in CY 2023.
Unemployment Rate 3.6% for IT Pros Improves from 4.3%
Updated with the latest forecast - Read on...
Impact on the IT Job Market
Janulaitis said, “The IT Job Market is just over 3.9 million positions within the US. The number of unfilled IT jobs has averaged over 200,000 for the past 12 months. That is driven by the fact that qualified candidates can not be found.” In addition, he added, “The first sign that the growth of the IT job market is slowing will be the reduction in that number as companies will just pull back on trying to recruit those unfilled positions. We feel that over the three to six months there will still be at least over 100,000 unfilled IT jobs.”
The CEO added, “The IT job market has grown by 93,400 jobs in 2022. That is 43,000 greater than the YTD growth seen in 2021. If there is a downturn, one of the areas that CEOs will implement are hiring freezes that will result in a decrease in the growth of IT job market.“
Latest YTD IT job market data - IT job Market Growth in Q1 2024 out performs Q1 2023
The CEO concluded by saying, “Based on our analysis, the IT job market and opportunities for IT professionals will continue to be positive but not as broad in scope as last year. CIOs are still posturing to hire more staff and expand technologies to address blockchain processing and security applications based on market conditions. However recent events, increased energy cost, and the specter of high inflation will harm IT job market growth.”
The president added, “In our 2022 IT Salary Survey, we have found IT salaries for existing IT staff and middle managers increased by just over 2% while new hires in the last quarter of 2021 were paid 5-6% more than existing staff. In conversation with several CIOs, we learned that increases for new hires in the 9-12% range were not uncommon. It is not uncommon for IT Pros who are highly skilled and experienced (over 10 years) to be offered salaries at $125K and above. Salary disparity is a driver of dissatisfaction and an increase in attrition rate among existing employees.”
Updated with the latest data
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Janco offers a service for its data which is available via a subscription. The link for a subscription is https://itmanager.substack.com/.
Janco is an international consulting firm that follows issues that concern CIOs and CFOs. The firm publishes a series of IT and business Infrastructure HandiGuides® and Templates including IT Infrastructure Policies and Procedures, Disaster Recovery/Business Continuity Template, Security Template, IT Job Descriptions, and its semi-annual IT Salary Survey.
