It's official: IT hiring has slowed
Budget sequestration may be helping to chill market
Computerworld - WASHINGTON -- After a decent start earlier this year, IT hiring is slowing down.
Despite a 203,000 increase in the overall number of jobs added to the U.S. economy in November, an analysis of hiring by two independent groups shows decreasing demand for IT pros. That trend has become apparent over the last several months.
The first analysis, by TechServe Alliance, an industry group, reports that IT hiring expanded by 3,200 jobs in November, 3,100 jobs in October, and 6,100 jobs in September. Those numbers are well off the hiring gains posted earlier this year.
From June to January of this year, the number of new IT jobs added on a monthly basis ranged from about 20,000 to just over 30,000, according to TechServe. "We are noticing a clear deceleration in the rate of growth," said Mark Roberts, the CEO of TechServe.
Nonetheless, there have been 28 months of consecutive job growth in IT. The total IT employment base is now 4.5 million, up 180,200 jobs this year, the group said.
Roberts blamed the slowdown on a variety of factors, including waning confidence and the ongoing government impasse on spending.
The Conference Board recently reported that its consumer confidence index decreased sharply in October and again in November. Consumers expressed "greater concern about future job and earning prospects," the Board said.
In analyzing IT hiring, some firms such as Janco Associates limit the types of IT occupations they study, and use a data set that's smaller than that used by TechServe. But Janco still sees the same trend.
By Janco's count, only 400 IT jobs were added last month, 4,300 in the last three months and nearly 71,000 this year.
Victor Janulaitis, the CEO of Janco, said the IT job situation is unlikely to improve -- especially once a new round of government mandated cuts, sequestration, hits the defense industry. That's because defense firms employ many people in states with large IT populations, including California, Washington, and Virginia.
"I think the recovery is on spotty ground at this point in time," said Janulaitis. He said CIOs are becoming more cautious on hiring, based on his survey over the last two weeks.
Incidentally, a trade group in North Carolina that tracks IT hiring in that state, noted a decline in hiring as well. "This drop came unexpected as many job markets swing up during the fall," reported the North Carolina Technology Association.
Patrick Thibodeau covers cloud computing and enterprise applications, outsourcing, government IT policies, data centers and IT workforce issues for Computerworld. Follow Patrick on Twitter at @DCgov or subscribe to Patrick's RSS feed . His e-mail address is email@example.com.
Read more about IT Industry in Computerworld's IT Industry Topic Center.
- Aberdeen Group: Marketing Analytics for Manufacturing: Forging Customer Insights There are no recalls for poor marketing. Manufacturers need to get their customer intelligence and messaging right the first time. Learn how.
- The Brave New World of Customer-Centric Manufacturing The Unique Opportunity for Manufacturers to Better Understand their Consumers
- See the Possibilities Utilizing Data Visualization Do you simply want to collect data, or do you want to derive business insights from it? What if you could quickly and...
Changing the Way Government Works: Four Technology Trends that Drive Down Costs and Increase Productivity
This paper discusses four technology-based approaches to improving processes and increasing
productivity while driving down department and agency costs.
- Cloud Knowledge Vault Learn how your organization can benefit from the scalability, flexibility, and performance that the cloud offers through the short videos and other resources...
- LIVE EVENT: 5/7, The End of Data Protection As We Know It. Introducing a Next Generation Data Protection Architecture. Traditional backup is going away, but where does this leave end-users? All IT Industry White Papers | Webcasts