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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| 5/19/03: Tim from Chicago says: |
Mike, you make a very very good point. Its just basic economics. We do make any money to spend on any of Microsofts products. And do even get me started on how they treat the guys with there own certs. |
| 5/19/03: Anonymous says: |
wow, okay the United States is a 'fat calf'... blame everything on America, but lets face it, you silly Aussies wouldn't be able to have much to do with high technology if it weren't for the brilliant entrepenieurs and tech architects who largely fostered the tech revolution starting in the states! so why don't you quit your whining, and stand side by side by the good guys?! |
| 5/19/03: cj from st. louis says: |
I HATE President Bush. I can't even stand to look at him. All those speeches about pride and patriotism make me want to wretch. Patriotism is not starting a war in an attempt to distract our attention from the fact that he's allowing these companies to send our jobs overseas with a song in his heart. What does he care? I'm making $16 an hour and clinging desperately to a job I hate while I fill with despair as my contract draws to a close and I can't find anything else. Bush's buddies are making $15mil a year from each of the half dozen companies whose boards they serve on. And they're the ones who are going to fill his pockets in the next election campaign so he can continue filling theirs. I'd like to tell him that patriotism would be taxing these companies severely for hiring H1B immigrants and outsourcing development overseas. Patriotism would be offering tax cuts to big businesses based on the number of United States citizens they employ. Patriotism would be trying to create jobs for us, not trying to placate us with extended Unemployment benefits that aren't enough to survive on. But this little tirade is useless. It's plain enough to see when you look into the depths of Bush's beady, little eyes, and see nothing but a faint, glimmering evil, that he doesn't understand patriotism in the least. All he understands is greed. The only thing we can do is wait it out. Hopefully people will see past the war and get him out of office, the same as with his father. Then, maybe when I call Netgear technical support because I can't upgrade the firmware on my router, I'll get someone who speaks English rather than some Iranian guy whose idea of dealing with the language barrier is to get mad and shout at me when I tell him five times that I can't understand him... |
| 5/19/03: cj from st. louis says: |
One more thing, President Bush: If I had a little more cash in my pocket right now from having a decent job, I'd be buying a new PC, two wireless cards and an access point, RedHat Linux Pro and a Cisco router. Not to mention two new cars, a big screen TV, a home theater and TIVO. That's what the economy needs, not more tax cuts... And there's one more thing: THE TEXAS RANGERS SUCK!!! I feel a little better now. But I still need a good job... |
| 5/19/03: Anonymous says: |
...go ahead and try to shout all your complains in the President's face...and see if things will change...after your...pathetic...posts here...and if you had a little cash in your pocket, that's your business as to what you'll buy, there's no need to advertise any of your plans in your life, we don't need and don't want to know, neither does the President... |
| 5/20/03: Craig from Boulder Colorado says: |
Whoever said that IT needs to get organized was right. We need to stop blaming our problems on immigrants. Its not China's fault that they'll work for less money, they'll just do it because they're really poor. They just want the same thing we do, a decent job, and a life with dignity. Its all the rich CEOs in the United States jerking people around, who are unwilling to pay any one fairly regardless of what land mass they happen to be working on. Don't sit around and try to "wait this out" because apathy will only make the situation worse. Yes, learn, and try to be competative, but at the same time get involved in trying to change the source of the problem. Concentration of wealth is what this is all about. Bush and all of his friends are just trying to make eachother richer, while sucking money from workers in the United States, and the rest of the world. Don't let the "tax-cuts" fool you, all they do is benefit the wealthy. IF you're a republican, thats fine, try to change this problem within you're party. If you're a democrat you're party pretty much has the same issues, but to a lesser degree, you'll need to work on them too. But, EVERYONE can do something. Write letters to the editor of your news paper, call your congressmen, senators, the president, radio shows, T.V. shows. Just don't let the bastards win! If you're really serious, some people are trying to put together computer workers unions. Here is an example: http://bari.iww.org/iu560 |
| 5/20/03: Anonymous says: |
http://www.whatreallyhappened.com |
| 5/20/03: Anonymous says: |
I love your crap. Tax benefits benefit the wealthy because the wealthy pay more taxes. Poor losers like you don't make enough to pay any significant taxes, therefore you shouldn't benefit from them. Graduate from the third grade already. |
| 5/20/03: Anonymous from midwest says: |
Most IT jobs will move to India and other similar places. Insurance processing will follow call centers to India as well. Some very sophisticated architectural work for U.S construction is being done in Hong Kong. The American government does not have the insight or the will to respond to this in any reasonable way. Count on bad times and a big change in American politics in about 10 years, after the real destruction is done |
| 5/20/03: Anonymous says: |
Chinese pussy smell like Dim Sum |
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