For IT job seekers, recession not over yet

Summer drop in hiring may mean budget cuts

Management consultancy and obsessive IT-hiring-and-salary tracker Janco Associates, Inc. reports that, for IT, the recession isn't over yet, as if we hadn't noticed.

The Bureau of Labor Statistics shows an overall drop of one-half of one percent in IT professions during September, compared to a year ago. Worst off are telecom workers, whose prospects dropped 5.18 percent and data processers and hosters, whose job market shrank 3 percent.

Demand for IT Jobs

Hiring Demand IT

This is not the chart that was originally published. This chart has been updated to reflect the latest hiring trends.
Chart is based on the latest IT Job Market Analysis by Janco Associates.

Janco attributes those drops to a continuing trend toward outsourcing.

Computer system design was up 2.54 percent, though "other information services," a category that includes everything from internal help deskers to public-cloud integrators and salespeople, rose 6.32 percent.

The surveys aren't done yet, but a newsletter on the BLS statistics said Janco's own early data confirm deterioration of the job market over the summer and says the consensus among the execs it interviewed is that the recession is not over, no matter what the fed says, and that budgets for 2011 will probably take a big hit, following a boost in business that caused them to rise as much as five to eight percent.

The job market for IT professionals, though better than the rest of the employment market, still continues to be sluggish.

The Bureau of Labor (BLS) statistics show a drop in the total employment of IT professionals from a year ago.  The areas were there has been the greatest shrinkage are telecommunications and data processing services.  Both of these sectors continue to be adversely impacted by outsourcing.

Historic IT Job Market Size

Recent IT Job Market size
For current data go IT Job Market Size to see the historic job market growth trend data