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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| 5/16/03: Cheryl says: |
I encourage all the IT unemployed to file for unemployment benefits. We need our government to have accurate unemployment figures so that this our issue will get attention. The job market is loosening a little, but I've also heard of companies going off-shore. These companies should wake up and realize unemployed americans don't spend as much money. |
| 5/16/03: Blow a goat says: |
hey Mo Money, STROKE, STROKE, STROKE, STROKE, STROKE, STROKE, STROKE, STROKE. I hope a vein in your head pops! ....just free speech. |
| 5/16/03: David says: |
All of these companies, tech, manufacturing, and customer service, through Free Trade, will soon realize that there is no one in America to buy their products. We are the number one consumer economy in the world and the other countries depend on US for their wealth. That is why our trade deficit is so high. When these cocky, wealthy CEO's realize they can't make a profit from taking the money away from the U.S. then we will have our day...and we should really should stick it to them. |
| 5/16/03: DonGorgon from Jamaica says: |
Thankfully the security field is growing. |
| 5/16/03: Anonymous says: |
How much does a fry cook at McDonalds make? It's more than I'm getting now being unemployed with my A+, MCSE, CCNA, CCDA and CCNP certifications. Do yourself a favor: Get out of IT. |
| 5/16/03: Mike from NYC says: |
I'm tired of living though yet a second Bush economy. Tax cuts historically do not jump start economies and bloat the deficit. Why oh why isn't somebody doing something about the H-1B visa and offshore situations???!!?! People are struggling to keep what jobs they have, yet we're still importing foreigners to take jobs from us for cheap pay! What IT worker shortage? Offshoring isn't just un-American, it's a security risk! Do you want your credit card and ss#'s floating around in China of India? What can I do to help the situation? Who do I write to??? |
| 5/16/03: Struggling says: |
I agree with most comments above. I am MCSE NT 4.0,MCSE Windows 2K,CCNA,NTCIP,And I also have a Bachelors degree in Electronics Engineering. I have been a network administrator for different companies for over 8 years, and I was laid off last August, do to my company "relocating". It has been impossible to find a job in my area, in I.T. , Unless you are willing to settle for $8.50 an hour. I am now working in a different field, (Sales) and I am making a comfortable, stable living. My advice to "newbies" is to stay out of the I.T. field until things settle down, then proceed very cautiously, with a backup plan in place. I.T. is VERY unstable right now. Best of luck..... |
| 5/16/03: Mike from NYC says: |
Suggested reading: http://www.zazona.com/ShameH1B |
| 5/16/03: Network Engineer from Employed in NY says: |
In the scheme of things, a job in IT isn't the top priority. Thank Goodness we don't have to rely on Gore & Leiberman to fight Terrorism! It's the Tax & Spend Democrats that put us here. Clinton wasn't doing his job (he was getting a ****Job). And Hillary has done NOTHING for New York in this Post 911 world. NEVER FORGET, NEVER FORGIVE, NEVER AGAIN!! |
| 5/16/03: Anonymous says: |
Please! Bush did NOTHING before 9-11, not a thing! At least under Clinton, IT was going full tilt! How on earth can you blame democrats for this crummy economy? |
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