As per the latest data, all the IT jobs lost during the pandemic have been recovered, but the lack of qualified persons is hampering the recruitment of IT professionals.
Nevertheless, the IT job market continues to expand. According to IT employment consultant Genco Associates, in the last one year, more than 11,000 new IT positions have been added every month. (Janco based its information on data from the US Bureau of Labor Statistics – BLS.)
“All signs point to a continuation of that growth,” Genco said in a statement on its website.
The April monthly tech jobs report released by the CompTIA industry association showed the tech industry added 12,300 jobs from February to March 2022. Software developers (3,613) and systems engineers/architects (3,126) led the pack in terms of new positions available.
According to CompTIA, software developers and engineers are far from the most in-demand positions that companies need to fill, with more than 115,000 job postings across the US. IT support specialists, IT project managers, systems engineers and architects, and network engineers and architects are also in great demand.
“By all accounts this was an exceptionally strong start to the year for tech employment,” said Tim Herbert, CompTIA’s chief research officer. “The arms race in recruiting and retaining technical talent undoubtedly challenges employers, both directly and indirectly.”
The unemployment rate for tech occupations fell to a near-record low as tech firms added workers for the 16th consecutive month and employer job postings for tech positions exceeded 400,000 in March, according to an analysis of the latest labor market data by CompTIA. Went.
“The already tight labor market has just gotten tighter as competition for technical talent reaches record levels,” Herbert said in a statement. “For any employer that relies on the old hiring playbook, it is time to rethink its approach to recruitment and retention.”
IT jobs increased by 19,000 across the US in March. The unemployment rate for tech occupations is 1.3%, its lowest level since June 2019 and nearly a third of the current national unemployment rate (3.6%).
Janco estimates that over 138,000 new IT jobs will be created in 2022. There are now over 3.85 million positions in the US in the IT job market. As of December 2021, Genco reported 3.72 million IT positions in the US.
“Based on our analysis, the IT job market and opportunities for IT professionals will remain positive, but will not broaden within the scope of the last quarter of 2021,” said Genco CEO M. Victor Genulitis said in a statement. “CIOs are still posturing to hire more employees and expand technologies to address blockchain processing and security applications depending on market conditions. However, recent developments, increased energy costs and high inflation have been noted. Fears will hurt IT job market growth.
According to the BLS, employment in computer and information technology occupations is projected to grow 13% from 2020 to 2030, faster than the average for all occupations. According to the BLS, cloud computing, the collection and storage of big data, and those workers with a greater emphasis on information security are projected to add about 667,600 new jobs in IT, according to the BLS.
The median annual wage for computer and information technology occupations was $94,729 in January 2021, higher than the median annual wage for all occupations ($45,760). In January 2022, the median salary for IT positions increased to $96,667 – an increase of about 2.05%.
In contrast, according to Genco, new IT workers were paid 5% to 6% more than existing employees in the last quarter of 2021.
“In conversations with several CIOs, we learned that increases for new employees in the 9% to 12% range were not unusual,” Janulitis said. “It is not uncommon for IT professionals who are highly skilled and experienced (over the age of 10) to be offered salaries at $125,000 and above. Pay disparity dissatisfaction and increasing job loss rates among existing employees is the reason.
According to the US Bureau of Labor Statistics (BLS), IT professionals have been recruited at a record pace so far this year, with 197,000 more IT jobs compared to last year.
According to IT employment consultant Genco Associates, every IT job market has grown in the past eight months.
“Information-technology leaders say they are increasing compensation packages and flexible work options to widen the pool of potential job candidates, as demand grows for tech talent,” said M Victor Genulitis, Genco CEO, said on the company’s website.
To entice employees and retain existing technical staff, CIOs are offering flexible work options, such as a combination of in-office and remote work. The median salary for IT professionals is expected to rise between $96,000 and $97,000, from just $94,600 in January and $95,600 in June, Janulaitis wrote.
He said, “Most CIOs haven’t recruited at this rate before. Genco credits the hiring of a few CIOs to meet its company’s goals of recruiting talent related to security, compliance and cloud computing,” Those IT jobs are hard to fill.”
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, about 150,000 jobs were added to the IT job market.
In all job markets included, approximately 100 million working-age people were excluded from the labor force in November 2021, based on BLS data. According to BLS data, most are, of course, still in school, retired sick or disabled and unable to work. But, those excluded from the labor force also include 471,000 “frustrated workers”, representing an increase from 460,000 last month. Reasons not to rejoin the workforce were the continued impact of vaccine mandates, travel restrictions and new virus variants.
According to the job-search company Joblist, about 34.4 million people have quit their jobs this year as they reevaluate their work lives. A recently published survey of 26,000 employees by Joblist showed that nearly three-quarters of respondents said they were actively thinking about leaving. And, around 34.4 million people have left their jobs this year during 2021 as they reevaluate their work lives.
According to a Work Trend Index study by Microsoft Corp, about 46% of the remaining workforce is considering leaving work because they are not being allowed to work remotely.
According to the Genco Associates website, “There are 94.438 million who do not want work at all. This is an increase of about 612,000 persons from the same month last year.”
Another reason for the steady decline in labor participation rates is the retirement of baby boomers.
Overall, however, the IT job market in the US added an average of about 13,000 positions during each month of 2021, against the typical monthly average of between 5,000 and 8,000 jobs.
Job growth in the US IT industry had slowed and declined in October, with just 4,800 positions being added, according to BLS data included in data from Jenko Associates. This was down from the 8,900 positions added in the revised figures for September.
In October, the overall growth in IT positions came even as the highly contagious delta version of COVID-19 continued to hinder overall job growth, primarily due to a slowdown in the restaurant, entertainment and service sectors.
Janulitis said in a statement at the time, the major challenge facing the IT industry is finding qualified candidates for those IT jobs. And the challenge will not end soon, he added:
From the data we reviewed, the shutdown resulted in fewer computer science candidates graduating from universities and trade schools. Those in the pipeline for those degrees were also reduced. One of the drivers of that trend was that closing borders limited the number of foreign nationals who could qualify for that training and education.
Many of the new positions CIOs are trying to fill are in new technologies. There is a dearth of persons who have the necessary training and skills. There are open positions that cannot be filled. … Also, the rate of timely job leave is increasing in many IT organizations.
Before the delta version and the talent crunch, US IT job growth was strong in the first year: August saw growth of 25,400 new jobs, on the heels of nearly 18,500 in June and 9,900 in July (all are revised figures), Recovery from the pandemic reflecting continued business. In fact, IT job growth has been up for 15 consecutive months, though it was uneven during May. I have secured an average of 13,000 new jobs every month so far in 2021.
IT job positions in the US look like pre-pandemic conditions: more positions than candidates. In fact, businesses would have filled more IT positions in September had they found enough qualified candidates, Genulitis said. Finding web developers and cybersecurity and compliance professionals is one of the hardest jobs for CIOs, he said – and is causing HR to focus more on IT staff retention.
Janulitis said the talent shortage has put even more pressure on businesses to raise salaries — and US IT salaries were already on trend in 2021.
Genco still expects more IT job growth in 2021 – there were 189,000 new positions in 2021 as of October 31, with two more months of recruitment left in the year – compared to any previous year, due to jobs lost more epidemic than The previous high was 2015, when 112,500 new posts 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 positions.
Genco estimates that there are now 3.72 million pro-IT jobs in the US.
The monthly tech jobs report released by the CompTIA industry association also showed slow recruitment growth in October. CompTIA calculated that there were 8,300 new US tech sector jobs last month, compared to 18,700 in September, 26,800 in August, 10,700 in July and 10,500 in June. According to CompTIA data, the US tech sector’s job numbers remain well above their March 2020 peak of 4.76 million positions, up from just 4.81 million in October 2021.
CompTIA counts both technical and non-technical positions in tech vendors, with approximately 44% being technical and 56% non-technical; Genco looks after IT positions in all industries including software developers.
CompTIA calculated the projected unemployment rate for the tech sector at 2.1% in October, down from 2.2% in September but 1.5% in August and July. The current technical unemployment rate is within its 2018-19 low, where it ranged from 1.2% to 2.4%. According to the BLS, the national unemployment rate stood at 4.6 percent in October, up from 4.8 percent in September.
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