Not good right now:
** IT Jobless Rate Hits 5.5%
IT joblessness remains at historic highs as many technology
jobs that had once seemed secure fall victim to the recession
and the aftermath of the Sept. 11 attacks. In November, the IT
unemployment rate jumped one-half percentage point from record-
high levels posted earlier this fall, rising to 5.5% from 5.0%
in September and October, according to an analysis of figures
released this week by the Labor Department's Bureau of Labor
Statistics. A year earlier, IT unemployment stood at 2.0%.
Overall unemployment last month reached 5.7%, a six-year high.
The 5.5% IT unemployment rate is the highest in memory. Between
1963 and 2000, the annualized IT unemployment rate peaked at 3%
in 1991 and 1992, the years of the last recession, and bottomed
out at 1.3% in 1997, the start of the dot-com boom. Expect
another historic high next month, Meta Group analyst Maria
Schafer says. "I wouldn't be surprised to see it go to 6.3% or
6.4% in the coming months."
But companies laying off IT workers may face a challenge when
the economy does recover--namely, finding the right IT talent
to help execute a stockpile of projects. "In many cases,
companies are in survival mode and can't afford to move
forward," Schafer says. "But when they do, they will be
churning up things quickly. There's a substantial amount of
demand for people and projects that's been put on hold."
Some companies are hedging their bets by not firing employees
but furloughing them, with the intent of calling them back if
conditions turn around. Many employers bent over backward to
hire the right IT people a couple of years ago and were
reluctant to let them go after spending so much money to
recruit them, says Scott Brown, chief economist at Raymond
James & Associates. By furloughing employees, companies can
avoid hefty recruiting costs. Says Brown, "It would be
tougher to hire those IT workers if the economy were to turn on
a dime." - Eric Chabrow and Sandra Swanson
For full story, go to:
http://update.informationweek.com/cgi-bin4/flo?y=eFMc0BlhHd0V20BDxJ0Al
For more on IT labor market, see:
IT Jobless Rates Hit Historic Highs
http://update.informationweek.com/cgi-bin4/flo?y=eFMc0BlhHd0V20Zmz0Ae
Where Are the Jobs?: An In-Depth Look at the IT Job Market
http://update.informationweek.com/cgi-bin4/flo?y=eFMc0BlhHd0V20Zub0AO