The need to ramp up staffing trumps reservations about the economy
There’s plenty of reason for optimism about IT jobs. CIOs are ramping up hiring, average salaries are climbing, and companies are increasing their investments in core tech areas such as security, mobility and data analytics. Concerns about the economy and budget battles on Capitol Hill have put a damper on the IT job scene, but not enough to thwart expansion.
“We’re seeing robust growth in IT jobs, both on the contract side and on the permanent/direct hire side,” says Matthew Ripaldi, senior vice president at IT staffing specialist Modis. “It’s broad-based, as well. We’re seeing growth in a lot of different geographies, across a number of different industries, and in companies of all sizes.”
So far, the need to ramp up staffing is trumping reservations about the economy.
“There’s still a little uncertainty out there, but companies are moving ahead with their hiring,” Ripaldi says. “They need to develop new products and services, they need to upgrade their systems and they need to become more efficient.”
“As we continue down 2013, I think we’ll see less hesitation, more action by companies,” he says.
National employment data, research and industry analysis also point to a healthy job market for tech professionals. Here are 10 indicators we’re watching.
[ 2013 JOB WATCH: Top 11 metro areas for tech jobs ]
More hiring is planned
Fourteen percent of CIOs say they plan to expand their IT departments in the second quarter of 2013, reports Robert Half Technology. In addition, 70% said it’s challenging to find skilled professionals today. The skill sets in greatest demand are network administration, cited by 51% of CIOs, and database management, also cited by 51% of CIOs.
Companies are offering more perks
As competition for talent gets tighter, hiring managers are responding by offering candidates a wider range of perks, including workplace flexibility. For instance, companies are more willing to allow a job candidate to work from home one day per week, Ripaldi says. “They’re more lenient now because they want to attract that talent.” In a new survey by Robert Half Technology, 52% of IT workers said a remote working option was somewhat important when considering a new job opportunity, and another 23% said the option to telecommute is very important.
Number of job-hunters is multiplying
Up to 54% of IT pros actively search for a job at least once a week, according to data from IT staffing provider TEKsystems. More people are willing to consider leaving their current jobs than have been in recent years, says Modis’ Ripaldi. “They’re feeling better about their job prospects, and they may feel as though they can better their situation, whether through a better rate or a target company or new technologies and skills they can gain.”
Tech salaries jumped 5.3% in 2012
The IT industry started 2013 with positive momentum on the salary front. Average salaries for tech pros climbed 5.3% to $85,619 in 2012, up from $81,327 in 2011. It was the largest salary jump in more than a decade, according to jobs site Dice.com. Entry-level talent (two years or less experience) waited three years to see an increase in average annual pay — and the market made up for the stagnancy with an 8% year-over-year increase to $46,315. At the other end of the spectrum, average salaries for tech professionals with at least 15 years of experience topped six-figures for the first time, growing 4% to $103,012.
Salaries climbing in 2013
Base compensation for IT pros is expected to increase an average of 5.3% this year, and a fortunate few IT titles will be getting even bigger pay hikes, according to data from recruiting and staffing specialist Robert Half Technology. At the top of the heap, based on percentage gains, are mobile application developers and wireless network engineers, who can expect a 9% and 7.9% increase in starting salaries, respectively, RHT reports. Other IT titles in line for better-than-average raises include network engineer (+7.8%), data modeler (+7.6%), portal administrator (+7.5%) and data warehouse manager (+7.4%).
Data skills are in demand
Across the U.S., big data skills are in demand, as evidenced by $100,000+ salaries for tech pros who use Hadoop, NoSQL and MongoDB. By comparison, average salaries associated with cloud and virtualization are just under $90,000 and mobile salaries are closer to $80,000, Dice reports. “Tech professionals who analyze large data streams and strategically impact the overall business goals of a firm have an opportunity to write their own ticket,” said Alice Hill, managing director of Dice.com. “The message to employers? If you have a talented data team, hold on tight or learn the consequences of a lift-out.”
Java demand unabated
For the second consecutive year, the top hiring priority is Java/J2EE developers, according to Dice.com’s 2013 Hiring Survey. “More than one in five of the 77,000 jobs posted on Dice contained some mention of the need for Java know-how. The bottom line: If you’re looking to hire veteran Java-fluent talent, expect plenty of competition,” Hill stated.
Search for security pros is accelerating
Demand for information security experts in the U.S. grew 3.5 times faster than demand for other IT jobs over the past five years, according to Burning Glass Technologies. In 2012, there were more than 67,400 job postings for cybersecurity-related jobs — a spike of 73% compared to the number of security jobs posted in 2007. By comparison, the number of job postings for all computer jobs grew by about 20% between 2007 and 2012.
Overall jobs picture brightens
In the broader employment picture, the overall jobless rate in the U.S. hit a four-year low in February. Employment rose 236,000 last month, according to the U.S. Bureau of Labor Statistics, and the jobless rate dropped from 7.9% to 7.7%, the lowest since December 2008. One caveat, however, is the participation rate, which indicates the percentage of working-age people in the labor force. The participation rate dropped to 63.5%, which is the lowest since September 1981. Adults leaving the labor force or stopping their job searches has the effect of reducing unemployment.
Labor participation rate dampens optimism
The labor participation rate is a concern for consulting firm Janco Associates, which sees mixed job prospects for IT pros. CIOs are “looking to a more interesting future with sequester, tax increases, unsure economic future, and unstable world political situation,” stated Victor Janulaitis, CEO of Janco Associates. On the flip side, CIOs still predict that overall hiring will improve as 2013 progresses, Janulaitis said. “CIOs are looking to add back management levels that were eliminated in the recession. In addition, CIOs are looking for particular sets of skills to meet the demands of mobile computing” and BYOD, in particular.
Ann Bednarz covers IT careers, outsourcing and Internet culture for Network World. Follow Ann on Twitter at @annbednarz and reach her via email at abednarz@nww.com.
