ITAA Study: Demand for U.S. Tech Workers at Historic Low
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.
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There are 106  user Comments for “ITAA Study: Demand for U.S. Tech Workers at Historic Low”
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| 8/8/03: Gentry says: |
Harris Miller & the ITAA are a bunch of shills for offshoring interests. Anything they say can be automaticly assumed to be a lot worse than it really is. |
| 8/20/03: Bob Radvanovsky from Chicago, IL says: |
Having been here awhile, I can say with confidence that the IT job market is improving -- very slowly -- but, nonetheless, it is improving. Those of you who were used to 12-30% profit margins and high incomes aren't the "true IT people". The last one posted from June 18th had it right. ;))) Something all of you should know, before I started my job on April 1st (heh, kinda ironic, isn't it?), I was working contract for a healthcare equipment manufacturer west of Milwaukee, WI. I travelled DAILY 216 miles round-trip (took me average around 5.5 hours daily round-trip, 6-8 hours on snowy days) -- and the reason was that I was only given an $50 per day per deum at a whole whomping $27 per hour -- jobs then were slim to none, and if you didn't have a job, you had to fend for yourself. This wasn't enough for the LOWEST place and food up there. So... I travelled back and forth -- for 2.5 months. Now, boys and girls -- would you be willing to do that to save your house in desperate times like these? I hardly think not. You probably still live with your parents (and I know that I'll receive bad statements here, because most of the "children" here haven't been in those positions of need, because their parents have bailed them out). I'm a technician and proud of it. I've worked in IT for over 24 years (37 years old -- am an "old fart" and proud of it -- started out at age 12 doing VAX BASIC programming at local college in 1978), and only know IT. IT is my life and passion. I have a data center in my basement, and constantly keep up-to-date with the latest techniques, tools and methods. I have Windows, Novell and UNIX products there, and am currently working on understanding "grid computing technology". Ask that to a "Generation Z'er", and you get a "Whatever, dude." response. Most of them would ask "why", and to which I would say "Just because I can do it." Simply put -- it is because of those kinds of efforts that companies are looking for today in today's IT job market, not the "whatever kiddies" who claim something only to find out that they do NOTHING, then go home and hang out with their friends, speaking (more like grunting) one-word sentences ("Dude"). Companies are increasing their requests, and are finding them out there. You have to CONSTANTLY "tread water" (so to speak) in keeping up with technology. It is those who are willing to work with customers and clients, take a "team attitude" towards things, and be willing to be patient to acquire extra skills, certifications, et. al -- those are the ones that make the difference. Since my last posting, I now have 3 certifications along with my 3 degrees. I am happy with what I've accomplished so far, and am going for more "brass rings". This is something that I am doing for me, and only because I want to, not because the industry seems to want it. ;) -r P.S. Whatever. :)))))) |
| 9/15/03: Freshwes from detroit says: |
Well there are no it obs out there i been unemployed since 911 would like to work in amterdam cnna cisco novell can anybody help :-? |
| 12/6/03: antoine from shreveport la says: |
I JUST WANTED TO KNOW WHAT WOULD BE A GOOD FEILD TO GO IN WHEATHER TIMES ARE FAST OR SLOW |
| 2/3/04: Indian from NU says: |
I am not surprised at the comments made by my american friends, but then they need to understand that Business works on only one principle...Profits. So a company in this economy is more interested in making and saving its profits than think about personal. We (Indians) have always been treated as people with Intelligence and hardworking capabilities and right now we are being used as cheap labour. It is sad, but true and it gets worse when the blame is put on Indians instead of those American companies which are moving offshore. |
| 3/17/04: Anonymous says: |
Good luck to everyone. |
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