Janco forecasts 196K New IT Jobs Will be Created in CY 2022

July 11, 2022 (PRLEAP.COM) Business News
Park City UT www.e-janco.com Janco reports that in the first half of 2022 115K new jobs for IT Pros were added. Even with inflation, high energy costs, and the invasion of Ukraine, IT hiring continued at a record-setting pace. There is some slowing in hiring as fears of a significant downturn or recession are on the horizon. This is making the budgeting process for 2023 more complex for enterprises of all sizes.

According to the latest BLS data, analyzed by Janco, there are now 3.92 million jobs for IT Professionals in the US. For 24 months in a row, there has been an increase in the number of jobs added to the IT job market. Janco sees this trend continuing.

The CEO of Janco, M. Victor Janulaitis said, "Based on our analysis, the IT job market and opportunities for IT professionals will continue to be positive but not as broad in scope as in the first 6 months of 2022. CIOs are still posturing to hire more staff and expand technologies to address blockchain processing and security applications based on market conditions."

He said, "Inflation is real and salaries for new hires are higher we estimate on average 5-6% salary offers above existing pay grades are needed to attract the best IT candidates. Salary compression is occurring with new employees being paid more than existing employees. That does impact existing employee satisfaction and results in higher attrition rates. The challenge CIOs face will be how to keep the balance between the existing budget, providing salary increases to existing employees that address inflation and higher commuting costs, and having sufficient resources available to achieve the enterprise's technology and bottom line objectives."

The CEO added, "In our Mid Year 2022 IT Salary Survey, we have found IT salaries for existing IT staff and middle managers increased by just under 3% while new hires were paid 5-6% more than existing staff. In conversation with several CIOs, we learned that starting pay rates for new hires in the 8-10% range were not uncommon. That salary disparity is a driver of dissatisfaction and an increase in attrition rate among existing employees."

Janco has updated its forecast for IT job market growth to 196,000 new jobs to be created in 2022. That will be less growth than happened in 2021.

He said, "Inflation is real and salaries for new hires are higher we estimate on average 5-6% salary offers above existing pay grades are needed to attract the best IT candidates. Salary compression is occurring with new employees being paid more than existing employees. That does impact existing employee satisfaction and results in higher attrition rates. The challenge CIOs face will be how to keep the balance between the existing budget, providing salary increases to existing employees that address inflation and higher commuting costs, and having sufficient resources available to achieve the enterprise's technology and bottom line objectives."

The CEO added, "In our Mid Year 2022 IT Salary Survey, we have found IT salaries for existing IT staff and middle managers increased by just under 3% while new hires were paid 5-6% more than existing staff. In conversation with several CIOs, we learned that starting pay rates for new hires in the 8-10% range were not uncommon. That salary disparity is a driver of dissatisfaction and an increase in attrition rate among existing employees."

Janulaitis said, "CIOs and CFOs now are more cautious than they were in the first quarter. CIOs do not have a clear understanding of how a downturn will impact their bottom line. Most still are hiring but at a slower pace. Some companies have stopped hiring and started laying off employees. With all that, the IT job market remains tight with an average of 200,000 IT professionals jobs that are not filled due to a lack of qualified candidates. If there is a major downturn many companies will choose to not fill those new open positions. That should be enough of a buffer to keep hiring of IT pros on a positive track."

Janco offers a service for its data which is available via a subscription. The link for a subscription is https://itmanager.substack.com/.

Janco is an international consulting firm that follows issues that concern CIOs and CFOs. The firm publishes a series of IT and business Infrastructure HandiGuides® and Templates including IT Infrastructure Policies and Procedures, Disaster Recovery/Business Continuity Template, Security Template, IT Job Descriptions, and its semi-annual IT Salary Survey.

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Janco Associates