The IT job market isn’t looking as positive as previously forecast, and even more belt-tightening by employers could be on the horizon.
Data from the U.S. Bureau of Labor Statistics shows the rate of increase in the number of IT jobs is slowing, according to Janco. After reviewing the data and factoring in its interviews with 92 CIOs, Janco has revised its forecast for the number of IT jobs to be created in 2015 from 160,000 to 145,100.
“CIOs are now more cautious in their hiring (than) earlier in the year,” said M.V. Janulaitis, Janco’s CEO. “Granted by October 2015, 112,400 jobs had been created in the year versus the 81,200 in 2014. The trend for increased hiring is slowing down. For the last two months of the year we forecast slightly more than 30,000 new IT jobs will be created.”
With financial-market volatility, election year uncertainty and international instability, “CIOs and executive management will need to make some very difficult decisions over the next several months,” he said. In addition, the possibility of a major upturn in new IT hiring is slight at best, he said.
“On the plus side, the recovery seems to be moving ahead, and CFOs, whom almost half of all CIOs report to, are still allowing limited incremental spending for IT-related activities,” Janulaitis said.
There is significant activity in the standardization of IT job titles and pay grades, according to Janco. For the past 30 years, Janco and its principles have created a set of more than 270 IT job descriptions that it says are viewed by many as the industry standard.
“We have seen significant interest in our IT Job Family Classification System, and the alignment and standardization of pay grades,” Janulaitis said.