IT Jobs Are Growing, But Can It Last? - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Government // Mobile & Wireless
03:53 PM
Chris Murphy
Chris Murphy
Connect Directly

IT Jobs Are Growing, But Can It Last?

U.S. IT employment is back over the 4 million mark.

U.S. IT employment peeked back over the 4 million job mark in the second quarter, back to the employment levels of 2008, before the financial crisis brought major layoffs.

The big question: Will the jobs momentum last? IT employment also hit 4 million in the second quarter of 2010, only give back the job growth in the following quarters. In 2008, by comparison, there were three consecutive quarters with more than 4 million IT pros employed, before the fourth quarter wiped out around 260,00 IT jobs, a more than 6% drop.

The figures come from a second quarter report from the Bureau of Labor Statistics' monthly Current Population Survey of households about their employment.

U.S. IT employment was at 4.06 million in the second quarter, based on adding up the employment estimates for 12 computer and software related job categories. That led to an IT unemployment rate of 3.4%, compared with unemployment of 4.4% for all of managerial, professional, and related occupations. IT made up 7.7% of the 52.7 million managerial and professional jobs. At its worst during the recession, IT unemployment was just over 6%.

A different IT jobs index also shows growth last quarter for IT employment but a "pause" in that momentum in June. The TechServe Alliance, a collaboration of IT services firms, clients, consultants and suppliers, publishes a job index using BLS data from employers, instead of from workers. That also shows U.S. IT employment above 4 million (4.05 million), and nearly 133,000 new jobs since a year ago, but it shows almost no growth last month. Despite that pause, "all signs point to the sector continuing to outperform the overall job market,” said Mark Roberts, CEO of TechServe Alliance.

Preliminary data just in from our InformationWeek 500 research includes one data point on IT spending that supports this growth view. Nearly 70% of companies expect to spend more this year than last year on IT, and just 11% plan to cut. In 2009, when companies were slashing IT jobs, 42% of companies expected to cut their IT budgets, and just 37% expected it to grow. (Sign up to attend our IW 500 conference here.)

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Augmented Analytics Drives Next Wave of AI, Machine Learning, BI
Jessica Davis, Senior Editor, Enterprise Apps,  3/19/2020
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
White Papers
Register for InformationWeek Newsletters
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
Flash Poll