It's Getting Harder to Find Silver Linings in IT Hiring Forecasts

Ann All

When I wrote about the IT hiring outlook last week, I cited a Computerworld article that found recent job listings on the Dice Web site, which specializes in tech positions, had declined 26 percent from a year ago.


As if that wasn't bad enough, a recent Dice survey of more than 1,000 IT hiring managers makes it clear the situation won't improve any time soon and, in fact, will likely worsen in the next six months. According to a story about the survey, 70 percent of respondents are scaling back their hiring plans for the first half of 2009. Compare this to a survey conducted in the summer, when 50 percent said they planned to hire fewer folks. Even more troubling, about half of the respondents say layoffs are likely in the same time period.


Layoffs are already happening, as evidenced by the increase in job applicants seen by three-quarters of the respondents. The number of resumes posted on Dice in this quarter grew 54 percent over Q4 2007. With a glut of applicants, half of respondents say they expect salaries to remain flat in 2009. More than 25 percent of respondents actually expect IT salaries to fall.


Just about the only possible silver lining here is that the pessimism level of internal hiring managers is far lower than that of their outside peers, with just 27 percent of the former saying they believe layoffs are likely in the next six months, vs. 63 percent of the latter.


Forrester Research analyst Andrew Bartels tells that outside contractors and other vendors will likely make more staff cuts than other companies. This makes sense, as many companies are trimming their spending on contractors. Forty-four percent of respondents to a recent survey said they were doing so, for instance.

Add Comment      Leave a comment on this blog post
Dec 15, 2008 5:59 AM tom tom  says:
This could mean that temporary work could increase. The use of contract labor could increase in a downturn in hiring. Reply
Dec 15, 2008 8:40 AM ero ero  says:
On the contrary, 8 out of 10 jobs for IT Developer position I applied for are fulltime. Only a handful left for contractual position. Reply
Feb 27, 2009 6:47 AM John Hill John Hill  says:

There's no question that the economy has created (the MEDIA have help create) a lot of challenges for the American worker in all fields, including the IT industry, where jobs were supposed to be fairly safe. One clear distinction between this recession and previous recessions (that I've been through and survived) is that, historically, in previous recessions the American business-world delayed making the tough HR cuts vs. today's extremely fast reaction of cutting beyond reasonableness.

The Staffing industry will rebound with a vengeance soon because US companies won't be able to support their business' day-to-day processes to stay in business without the IT support that EVERY business process today demands...

Feb 27, 2009 12:20 PM Tim Tim  says:

G.1440's one of Baltimore's leading IT Staffing firms, and while we've certainly felt the economy, we're still placing great candidates to great positions.  We have a number of open IT positions for both perm and contractor opportunities.

On a purely anecdotal note, while I'd have guessed that contract labor would be up as @tom noted, it seems to me that a lot of companies are looking for more permanent people.  That's based on nothing more than my small view of the market, though...


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