IT Job Market Poor at Best

Janco predicts second recessionary dip

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Janco has just conducted a series of interviews of CFOs and CTOs in large and  mid-sized enterprises. Janco finds that the job forecast  for IT professionals remains poor for the short and medium term. Janco  finds that most large enterprises are continue to consolidate and cut  costs. Especially impacted are firms based on the West Coast. The  CEO of Janco, Victor Janulaitis said, "Many firms are continuing to reduce the  size of their IT staffs as smaller layoffs continue. Few enterprises are  hiring where there is an increase in head counts." He added, "Looking ahead to  the next budgeting cycle, many of enterprises interviewed do not see any new  hiring until 2nd and 3rd quarters of 2012 as they expect a dip in the economy in  the 3rd and 4th quarter of 2011."

This is in contrast with a recent ADP report which says that layoffs are  down, hiring is up and cautious optimism is the rule of the day when it comes to  employment figures. Payroll numbers show the most job growth in April came from  the services sector and from medium to large businesses.

The news from ADP is that 32,000 new jobs were created in April,  predominantly in the services sector and mostly by medium to large businesses.  Small businesses were only responsible for 1,000 of the 32,000 total jobs  added.

As you can see, the last few years have been particularly tough on IT salary levels:

Mean IT salary, 2007-2010

Large companies (223 organizations responded):

January 2007: $81,078
January 2008: $82,197
January 2009: $81,302
January 2010: $81,614

Mid-size companies (594 organizations responded):

January 2007: $75,096
January 2008: $75,814
January 2009: $73,132
January 2010: $73,216

Overall IT salary levels are declining in part because the performance bonuses of salaries are declining:

 

 

Summary Results and Changes in Demand for IT Jobs 2010