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: To the HP guy says: |
Check this out- http://www.forbes.com/home/2002/12/05/cz_qh_1205hp.html |
| 5/16/03: Bob Radvanovsky from Chicago, IL says: |
I am now working in the health care industry, after having been out of work (along with my wife, who had worked as a contractor for a now-bankrupt) aggregated almost 2 year unemployed. I have three (3) degrees, and now one (1) certification. After seeing how much "pass the buck" goes on within the IT industry lately (not just health care, kids), it's no wonder why executives are looking for "slave labor" from India. The question is -- how do we get it back? Answer: we don't. It is our fault of departmentalcorporate political warfare (and entrenchments) that have cause executives to think that we can't get along, we can't get things done, and we can't do what management wants from us. I personally agree with them, only to be one of the few senior-level technicians who gives a damn in what I do. Problem is, is that now I have to contend with all the kiddies from the failed "dot.com" companies over the past 3-4 years, who have a holier than Thou attitude, want $100K per year salary with no education, no career history -- and all because they know Java. Bunk! The problem is, is two-fold: (1) the rift between the IT personnel and management has widened so far, that no one is willing to bridge the gap between the two factions -- due to lack of communication, laziness, lack of skills (sorry, too many times I've seen so-called "technicians" that are nothing shy of secretaries thrusted into semi-technical roles, where I end up not-only doing my job, but theirs as well), lack of professionalism (ever of the heard "not my area of expertise" or "not my problem" issue?), lack of customer fulfillment -- all of this adds up; OR (2) money -- we've priced ourselves out of existence, and you can hire multiple Indian network engineers for the price/cost of ONE U.S. network engineer (sorry, this is another term for "slavery" to me). It all comes down to attitude and cost, boys and girls -- and management isn't getting either one. So... off we go to India (or China, or Mexico, or...). A toast people (raising my virtual glass of false champagne) -- to the demise of IT in the United States! Thank you for a wonderful 24 years! |
| 5/16/03: Lawrence Garvin from Houston, Texas says: |
The "positions" are still needed. I've seen no significant drop in the "Jobs Available" in the past three years. What I have seen is a sharp increase in the "fantasy requirements" employers are listing in job postings. They've combined so many different skills that it's virtually impossible to find a person with the "minimum required skill set". And.. if they did, I can't imagine such a person willing to work for the mediocre salaries that are being offered for such situations. In addition, there now exists a double edged sword with certifications. So many people out of work for so long makes it harder for those people to keep up with certifications, what with the cost of certification exams going up, not to mention the cost of training. Less people with certifications and more employers expecting people with current certifications makes the available candidate pool much smaller for each job posted. End result: Less jobs are filled because "qualified" candidates no longer exist, even though the organizations still NEED somebody to perform those duties. |
| 5/16/03: John in Phoenix says: |
I am with the rest of you on the whole H1B issue and watching these "Jackle's" send our jobs oversees. Then we are going to turn around and give them a tax cut!!!! Someone posted here earlier...this won't 'trickle down' to us at all. I have been out of work for six months and I have nine years experience in enterpise solutions. I think we should go to India and take 20K less a year and see how they like it!! Keep sending our jobs away and see how much your working class cash cow buys from you then!! I am beyond frustrated!! |
| 5/16/03: John from Phoenix says: |
On another note.....if you want to be compeditive....Unix, Unix, Unix....go on Ebay and get yourself a sparc off of some dotbomb or download the Intel Version of Solaris and grab a copy of Slackware or Redhat while you are at it!! That's your ticket until things pick up.... Good luck guys! |
| 5/16/03: Anonymous says: |
Why do they send job offshore or especially import foreigners with H1B? Take the the Chinese for example. Chinese people are more than willing to do more or even twice as much as Americans do for the same pay. They don't mind staying after hours in the office, doing something more for the boss or for his job, while they don't have to, without getting paid more, not even an overtime pay. They're willing to do more than what they're paid for, just for the sake of doing it. They rarely think "that's not my job, I'm not paid for doing that, why should I bother?", almost never. They tend to think "Why not? I don't mind". Most of them are "jack of all trades" thus many HR's say that they can hire one person for two jobs or otherwise hire two Chinese for the cost of one American's salary because they don't mind getting underpaid as long as they have a job. Why and how? Because their culture has taught them to save as much as 90% of their earnings, that's why low pay doesn't matter much to them compared to Americans. Therefore their living is hardly luxurious while it doesn't mean they don't have money in the bank, maybe more than those who drive CLK's. Which company doesn't want all those benefits? And when the jobs are sent offshore to those Asian countries, much more benefits they're getting for the extremely low standard of living there (salary and living cost are both low), so why not? |
| 5/16/03: Career Training Administrator from Washington State says: |
IT has changed which effects job roles,IT positions outsourced are low-level,obtain high-level skills and stayed employed,network,practice interviewing, voluntee!.IT professionals aren't usually people oriented.Communication is the key! Sell everything that isn't necessary for daily survival,get the equity out of your home,put the cash into something that will make money.Ride out the depression.Sell the gas guzzling truck/van/SUV. |
| 5/16/03: Anonymous says: |
...and get a Merc 500SL... |
| 5/16/03: Hal from nj says: |
Doctors are organized and make hundreds of thousand of dollors. Pilots are organized and make hundreds of thousands of dollors. How about IT people? Management is leading us to the slaughter. |
| 5/16/03: jaarin96 from texas says: |
In a related story U.S Companies project record profits from increased cheap Indian Laborers,,,, go figure I am moving to Canada and putting in for a H1-B visa. |
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