US IT job recovery is in full swing, but employee retention can be tenuous

IT professional hiring is at a record pace with 197,000 more IT jobs so far this year than in the same period last year, according to the US Bureau of Labor Statistics (BLS).

There has been growth in the IT job market every one of the past eight months, according to IT employment consultancy Janco Associates.

“Information technology leaders say they are pushing compensation packages and flexible job options to broaden the pool of potential job candidates as demand for tech talent increases,” said M. Victor Janulaitis , CEO of Janco, to the company. website.

To attract employees and retain existing technology staff, CIOs offer flexible work options, such as a combination of office and remote work. The median salary for IT professionals is expected to grow between $ 96,000 and $ 97,000, up from just over $ 94,600 in January and $ 95,600 in June, Janulaitis wrote.

“Most CIOs haven’t hired at this rate before. Janco credits the drive to hire some CIOs to meet his company’s goals of recruiting security, compliance, and cloud computing talent. Those jobs IT are hard to cover, “he said.

In 2019, 90,200 new IT jobs were created. As a result of the global pandemic. In contrast, 33,200 were lost in 2020. In 2021, nearly 150,000 jobs were added to the IT job market.

All labor markets included, almost 100 million people of working age were excluded of the workforce in November 2021, according to Janco Associates, which is based on data from BLS. Most, of course, are still in school, sick or disabled retirees and unable to work, according to BLS data. But those excluded from the workforce also include 471,000 “discouraged workers,” up from 460,000 last month. Reasons cited for not rejoining the workforce include the continued impact of vaccine mandates, travel restrictions, and new virus variants.

About 34.4 million people have quit their jobs this year as they reassess their working lives, according to job search company Joblist. A survey of the 26,000 employees recently posted by Joblist showed that nearly three-quarters of those surveyed said they were actively thinking about quitting smoking. And, approximately 34.4 million people have left their jobs this year during 2021 as they reassess their working lives.

About 46% of the remaining workforce is considering leaving work because they are not allowed to work remotely, according to the Study of the labor trend index by Microsoft Corp.

“There are 94.438 million who just don’t want to work at all. That’s an increase of almost 612,000 people from the same month last year,” according to the Janco Associates website.

The retirement of baby boomers is another factor in the continuing decline in the labor force participation rate.

Overall, however, the US IT job market has added an average of around 13,000 jobs during each month of 2021, compared to a typical monthly average of 5,000 to 8,000 jobs.

Job growth in the US IT industry slowed and fell in October, adding just 4,800 jobs, according to BLS data that was included in the Janco Associates figures. That was down from the 8,900 positions added in the revised September figures.

In October, the overall growth in IT positions was even as the highly infectious delta variant of COVID-19 continued to hamper overall job growth, primarily due to the slowdown in the restaurant, entertainment, and service sectors.

The IT industry’s biggest challenge is finding qualified candidates for those IT jobs, Janulaitis said in a statement at the time. And the challenge will not end soon, he said:

From the data we’ve reviewed, the closings resulted in fewer computer science candidates graduating from colleges and professional schools. Those that were pending for those titles were also reduced. One of the drivers of that trend was that border closures limited the number of foreign nationals who could qualify for such training and education.

Many of the new positions CIOs are trying to fill are in new technology. There is a shortage of people who have the necessary training and skills. There are vacancies that cannot be filled. … At the same time, downtime rates are increasing in many IT organizations.

IT job growth in the US was strongest at the beginning of the year, before the delta variant and talent shortage: August saw an increase of 25,400 new jobs after about 18,500 in June and 9,900 in July (all are revised figures), reflecting business continuity. recovery from the pandemic. In fact, IT job growth has occurred for 15 consecutive months, although it was uneven through May. So far in 2021, I have averaged 13,000 new jobs each month.

TI’s employment situation in the US still looks a lot like pre-pandemic status – more jobs than candidates. In fact, companies would have filled more IT positions in September if they had found enough qualified candidates, Janulaitis said. Finding web developers and cybersecurity and compliance professionals remains the most difficult task for CIOs, he said, and it is making HR more focused on retention of IT staff.

That talent shortage has put even greater pressure on companies to raise salaries, Janulaitis said, and IT salaries in the US had already been trending up in 2021.

Janco still expects 2021 to see higher IT job growth: There were 189,000 new positions in 2021 as of October 31, with two more months of hiring in the year, than in any prior year, more than making up for the jobs lost due to the pandemic. The last peak was in 2015, when 112,500 new jobs were created. In 2018, 104,600 new IT positions were added; in 2019, the increase was 90,200; And in 2020, the industry lost 33,200 jobs.

Today, there are 3.72 million IT professional jobs in the US, Janco estimates.

The monthly tech jobs report published by industry association CompTIA it also showed slower hiring growth in October. CompTIA estimated there were 8,300 new jobs in the US tech sector last month, down from 18,700 in September, 26,800 in August, 10,700 in July and 10,500 in June. US tech sector employment figures remain above their March 2020 peak of 4.76 million jobs, topping 4.81 million in October 2021, according to CompTIA data.

CompTIA estimates technical and non-technical positions at technology providers, with approximately 44% being technical and 56% non-technical; Janco analyzes IT positions, including software developers, in all industries.

CompTIA put the estimated unemployment rate for the tech sector at 2.1% in October, down from 2.2% in September, but above 1.5% in August and July. The current rate of tech unemployment is within the range of its 2018-19 lows, where it ranged from 1.2% to 2.4%. The national unemployment rate in October was 4.6%, up from 4.8% in September, according to the BLS.

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