Job momentum slowed in the IT sector last month, reflecting a disappointing report on U.S. employment one day after President Obama said the country was moving in the right direction.
Janco Associates, an international consulting firm, reports that 12,400 IT jobs were added last month. That figure is slightly down from 13,600 jobs in July but up from 9,600 jobs in June.
Overall, the economy only added 96,000 jobs in August, well below the 125,000 jobs economists had anticipated and shy of the 141,000 jobs in July, The New York Times reported. Another bad omen: 368,000 people dropped out of the labor force, illustrating the frustrations of Americans tired of fruitless job searches.
The jobs reports was released one day after President Obama rallied his party in a speech at the Democratic National Convention, seeking to convince the American people that the country was moving in the right direction toward prosperity and away from the economic crisis he inherited four years ago.
The telecommunications sector may disagree with the president; the sector actually lost 4,700 jobs in August, Janco reported, well more than the 700 jobs lost in data processing, hosting and related services. Within the IT sector, computer system design and related services added the most jobs (14,700) last month.
Although jobs were down in the IT sector, many CIOs are cautiously optimistic about future hiring.
"In telephone interviews in late August of 96 US based CIOs we found that many are looking ahead to a brighter 2013 and increased staffing in late spring and early summer," Janco CEO Victor Janulaitis said in a statement. "CIOs are keeping their current overall FTE (full time equivalent) headcounts level but are looking to replace consultants and contractors with full time employees."