Study: IT labor gap shrinking, but not far enough

SAN DIEGO - The labor shortage that has dogged the IT industry for years appears to be lessening, although the problem is still a significant one, according to a study released Monday by a group that tracks such matters.

The Information Technology Association of America (ITAA) released its latest IT workforce data during its annual conference here, results from which indicate that the labor gap in the IT industry is narrowing.

In 2001, the study estimates, U.S. companies will try to fill approximately 900,000 IT-related positions. This number falls well below last year's demand for 1.6 million new IT workers, a number driven in part by the tail end of the dot-com boom.

While companies will seek to fill all of those 900,000 positions, the ITAA estimates that 425,000 will remain vacant because of a shortage of workers. While the news is grim, it marks an improvement over 2000, when 850,000 jobs remained open, according to the report.

"Even in light of the dot-com bomb and a slowing economy, demand (for IT workers) continues to grow," said Harris Miller, president of the ITAA, speaking at a news conference here. "No, demand is not growing as rapidly as last year, but it is still growing."

Miller urged attendees here to continue nationwide efforts to improve IT education, especially among minority groups and women. Like others at the conference here, Miller said the talent pool among women and racial minorities is largely untapped and could solve the IT labor shortage in the U.S.

Non-IT companies continue to demand more tech workers, and tend to hold on to those workers for longer than IT companies, such as suppliers of software, hardware and Internet services, according to the ITAA study, which polled 685 IT managers.

Be it an IT company or another type of business, managers are keen to hold on to systems administrators in particular because of their broad skill set. Demand for even these highly skilled employees, however, is down 65% year over year, according to the study.

Beyond the need for more workers, Harris said the economic downturn and the related layoffs and hiring freezes has allowed companies to be slightly more selective with the workers they hire for some positions.

Employers want workers with strong personal and teamwork skills to complement their technical know-how, the study found.

Employees, meanwhile, want compensation plans along with frequent raises, the study found.

The IDG News Service is a Network World affiliate.