5/14/2003 -- The 2003 IT Workforce Study released earlier this month by the Information Technology Association Association (ITAA) found that demand for IT workers in the U.S. has dropped to "historic lows."

Based on surveys of 400 IT and non-IT companies throughout the US, the organization predicts that employers will be hiring only 493,000 IT workers during the next 12 months down from 1.6 million at the start of 2000 and less than one-half of the 1.1 million positions predicted needed at the start of 2002.

Sixty-seven percent of those surveyed said they thought hiring demand would stay the same or decline over the next twelve months.

The ITAA also found that more positions are moving overseas, with 12% of IT companies and 3% of non-IT companies saying they have already opened up overseas operations. According to the study, large IT companies were most likely to say theyve made this move 22% have already moved work offshore. Additionally, 15% of IT firms say they will move, or are undecided about moving, jobs overseas in the next twelve months, while 4% of non-IT firms say the same.

The survey placed the size of the US IT workforce at 10.3 million, with hiring and terminations amounting to less-than-one-percent growth during first quarter of 2003, and the IT workforce growing by 86,000 -- 11,000 below the 97,000 in the slowest quarter of 2002.

Other findings of this year's study include:

• IT companies in the Midwest and West are most likely to send jobs overseas.
• Seventy four percent of companies say they have not changed compensation for IT workers in the past twelve months. Of companies taking action, only 8% lowered pay.
• 91% of companies were able to meet or exceed their hiring plans in 2002. For non-IT companies, both hiring and terminations were down roughly 25% in the last twelve months.
• IT companies appear to be more likely to cut wages than non-IT companies.

If the demand for IT workers is an indicator of business growth, our survey results are not encouraging, commented ITAA President Harris N. Miller in a printed statement announcing the study findings. The fact that firms have dramatically scaled back force reductions may indicate that they are properly staffed to handle existing and new business. There are several bright points, such as companies adding technical support workers at the highest levels and the fact that most workers are not seeing pay cuts.

For more information or to download an executive summary of the study, visit ITAA.org. - B.N.