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.
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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 108  user Comments for “ITAA Study: Demand for U.S. Tech Workers at Historic Low”
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| 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. |
| 5/17/03: Anonymous says: |
Well, what a surprise...ITAA might be finally telling the truth about the crappy job market. I've been employed for almost 21 years in I.T. and i've had to widen my skill set in order to survive (thank god for linux). The sad fact is that I.T. (programming, etc) may be leaving the US due to the fact that everyone thinks overseas coders are better than US coders. Norman Matloff (CS professor) has done a fair amount of research in this area showing that overseas coders are no better (or worse) than US talent, but just cheaper. Try getting a guy from india on the phone to install a router in your office (ain't gonna happen), etc. Security seems to be a up and coming field, but requires large amounts of study and experience in order to do well in. If I had kids, I wouldn't encourage them to go into I.T. as it appears to be a dying field, at least in the US (will go the way of manufacturing, which 90% of the jobs left the US years ago). |
| 5/17/03: aaaaaaannnnnnooonnnnnn says: |
This is to Bob Radvanovsky, from 05-16... Maybe the reason you're changing old people's bed pans in health care right now is your attitude; why do you constantly refer to other people interested in IT and reading your drivel as "kids" and "boys and girls"? No one likes condescending old windbags, regardless of how much you think you know, and maybe you could get an attitude adjustment and start contributing to solutions and not the problem. |
| 5/18/03: Chris says: |
Hey , Guyz ...is fast moving evolving everyday its about embracing change ...or be left out ... Get on to the next big thing thats coming ..be it wireless, security but don't sit on your bottom ...this is a highly competitive market and to survive so you will aslo need to just that competitive ...the economy may be slow ...for now...but it will pick up... rules may change for visa's ....but one things is clear ...new technology will be developed every single day ...and will need to be supported ...thats were you will come in ...embrace the change ...otherwise if you can'y try acccounting or nursing ... that will never change ...but wish you luck ...cause you'll be bored to death...ask me cause I have been there |
| 5/18/03: Anonymous says: |
this is a longy-but-goody: http://www.time.com/time/magazine/article/0,9171,1101030526-452769,00.html |
| 5/18/03: Anonymous from Colorado Springs, CO says: |
I am not for unions, however, if there ever was a time that a union COULD be formed in the IT field, now is that time. Having been laid off from HP, I know what my friends say when I talk with them. They have now cut 65% of the way through the bone. Moral, if there is any, is very low and the light at the end of the tunnel is an express train. At the present time, I would not recommend high tech to anyone. Only the EE's and the top 1% of the software class have a good chance of getting a good job after graduating. Still, this to will pass. I'm afraid only time will tell. |
| 5/18/03: Mr. Ph.D. from Southeast says: |
Yup! Bob Radvanovsky knows how it is! Boys and girls are what they are at best. I've seen them... no respect, knowitalls, and full of fluff. Just try poking into them, and a breeze of hot air blows your way. You just know when you bump into one. Perhaps, the best thing about today's economy is that these kids will finally learn they've gotta earn their keep. |
| 5/18/03: Anonymous says: |
Ask yourself this question: Will there be more I.T. workers 5-10 years from now than today? I personally think the I.T. profession(s) is in a state of change. Yes, today jobs are being shipped overseas because the price is right. But, before long those who make such decisions will see the results and the tide will change. At the same time, being a webmaster alone, or a DBA may not be enough. Having many strong skills across a wider spectrum (i.e. MCSE and MCSD) will make you more valuable. Lastly, dumping out of a profession when times are tough is the worst thing you can do. Sure enough, by the time you get established in your new industry, you'll look back at I.T. and see things have changed and you'll wich you stuck with it. |
| 5/18/03: Derrick from Lake Elsinore says: |
This is very typical of the United States. We worry about everyone else but ourselves. The only advise right now is to learn, learn, learn. It will be unbelieveably competive in the net coming years. |
| 5/18/03: Anonymous says: |
Mr. Ph.D: How insightful, how respectful of younger coworkers. I can only imagine what they're saying about you behind your back. Oh... wait... they don't care enough about you to even waste a breath or second glance at you. Feeling left out and rejected are you... or as you might put it, are "we"? |
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