Over the past three months, entry-level IT jobs have dropped dramatically, according to a new report.
Jobs for technology workers fell from 29,500 in April to 24,000 in May and 18,400 in June, according to IT recruitment consultant Janco Associates.
The Janco report, compiled from the US Bureau of Labor Statistics (BLS) and survey data, said that the downward trend was due to several factors – especially the growing belief among C-level managers that we are already or soon to be in ‘ to be a recession.
In preparation for its May forecast for future IT appointment, Janco found that almost all of the 217 CEOs surveyed plan to:
- Limit the extension of existing contracts for contract workers and consultants to the third quarter of the year.
- Manage the number of full-time employees to budgeted levels by the end of this year.
- Not to replace departing employees who do not have basic IT skills and / or operational knowledge specific to the organization.
“In our interviews, we found that Wall Street had stopped hiring, and a number of job offers for recent IT college graduates’ expanded offerings were withdrawn,” the Janko report reads. “Preliminary indications of monthly BLS data for June appear to reinforce these findings.”
The Janco report indicated that some organizations have already begun the dismissal process.
- Netflix, PayPal, Getir, Klarna, Bolt and Carvana held retrenchments in May.
- Coinbase will cut 1,100 jobs, about 18% of its global workforce.
- Microsoft is slowing down the hiring process to “better align its resources.”
- Meta (Facebook) and Twitter have suspended appointments for some departments.
Gartner research shows that only 4% of U.S. companies started laying off employees, 7% froze appointments, and 15% delayed hiring.
Recruitment is still strong for experienced IT professionals – especially for some job titles, including in-demand security and technology-related jobs, such as blockchain and e-commerce jobs – but junior candidates are finding it harder to get new jobs, Janko said.
Moreover, the impact of inflation and the potential for a major downturn are not reflected in the initial 2023 budgets. Janco reported that most CIOs and CFOs are trying to determine what they will do in the event of that downturn.
Janco also publishes a biennial salary survey in January and July. Newly published survey results showed that IT salaries were increasing in the first six months of 2022. For the first time, the average salary of all IT staff in large companies exceeded $ 100,000.
Medium-sized companies provided the largest salary increases, averaging 4% north for middle-IT executives and employees. IT executives have seen a salary increase of 3.04% this year.
Large companies were more frugal, with employees receiving an average increase of 3.27% and CEOs and middle managers receiving an average of 3.47% and 1.20% respectively.
Although there were some indications that employment was slowing down, the average number of technical vacancies rose to more than 204,000, and that number is growing.
The unemployment rate for technical occupations fell to almost a record low in May, and vacancies for technical posts exceeded 443,000, according to one study. Analysis of the latest labor market data by CompTIA, a non-profit IT industry and labor force association.
“The already tight labor market is getting tighter with competition for technology talent reaching near record levels,” said Tim Herbert, chief research officer at CompTIA. “For any employer relying on the heritage appointment guide, it’s time to reconsider the appointment and retention tactics.”
Employers across the U.S. economy are stepping up their search for technology workers and technology companies continue to expand payrolls, according to CompTIA. Specifically, technology companies added 75,200 workers during the first four months of 2022.
More than 190,000 new IT jobs will be created in 2022, according to IT recruitment consultant Janco Associates. The IT job market now includes more than 3.85 million jobs in the United States, with about 130,000 of those jobs open, Janco reports.
Some of the best technical positions in terms of hiring and payment include software developer / engineer, IT project manager, IT support specialist, systems engineer / engineer and network engineer / engineer, according to the CompTIA Jobs Report.
Technical workers working in the cloud space have seen some of the biggest salary increases in recent years, according to a new salary survey from O’Reilly Media, an online IT training provider. According to the report, cloud-focused workers are the most in-demand technology talent as an increasing number of organizations of all sizes use cloud tools and services.
The survey revealed that cloud professionals earn a median annual salary of $ 182,000. The report’s findings also show the impact of the major reshuffle in the technology sector, with 20% reporting that they have already changed employers in the past year, and 25% of respondents planning to get new, better paid jobs, which the question arises as to whether the great reshuffle will continue.
The average salary increase over the past year for cloud workers was 4.3%. The survey also found that women’s average wages are unfortunately 7% lower than men’s.
The highest paid job titles include directors ($ 235,000) and executives ($ 231,000), followed by architects, “potential clients” and executives ($ 196,000, $ 190,000 and $ 188k, respectively).
“During the pandemic, we saw millions of workers resign from companies in an effort to reform their careers and take deliberate steps towards new jobs with higher wages and a better alignment of their work and life goals,” he said. Laura Baldwin, President of O’Reilly. “With these workers in such demand, we expect the massive technology migration to continue unless employers act with competitive wages, significant benefits, the flexibility to work remotely, learning and developing at work.”