IT Job Market Rebounds in June, But Job Creation Still Lags Behind 2015

The U.S. IT job market added 34,200 jobs in June, reversing most of the employment losses that occurred in May.

That’s according to Janco Associates’ latest IT Salary Survey and analysis of employment data from the U.S. Bureau of Labor Statistics (BLS). The moving average for new IT jobs was 0.44 percent in June, up from a loss of 0.51 percent in May.

“The trend in the creation of new IT jobs … continues to (be) below last year’s,” said Victor Janulaitis, Janco’s CEO. “There could potentially be a net decrease in the size of the IT job market in 2016. We have already adjusted our best-case forecast for net new IT jobs for the balance of this year and have changed our forecast to an estimated net new IT jobs to be created to 76,500.”

The mid-year IT salary survey shows that the median salary for IT professionals now is $82,775, up 0.64 percent from mid-year 2015.

“Many companies are cutting back on contractors and consultants,” Janulaitis said. “The additions to staff, if any, are in the applications development areas.”

CIOs are less optimistic this year compared to the same period last year, according to Janco.  A preliminary hiring forecast by job level within IT shows that long-term hiring plans for both IT staff and “contractors/consultants” is flat, it said.{ad}

“The current economic picture, especially with factors like the U.S. November election and Brexit, are not conducive for increased IT spending and job market expansion,” Janulaitis said. “In periods like the one we are going through, all companies are cautious and often see cost containment as the prudent direction to follow. The focus for this caution is on IT infrastructure ‘cost center’ spending in areas like training, software-hardware upgrades, and elimination of nonessential consultants, staff and IT initiatives.”

Finding opportunities for IT professionals is difficult at best, he said. Only those with the right set of experiences are even given interviews, he said.

“On the plus side, CIOs report that CFOs are not completely averse (to) incremental spending for IT-related activities that have operational support and have a good return on investment,” Janulaitis said. “We have found no IT initiatives that are being approved to upgrade technology for the sake of IT’s desire to have the latest new thing.”

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