Can the IT Industry Make Lemonade Out of a Sour December Jobs Report?January 10th, 2014 | Articles, Industry News | No Comments »
December has never quite gained worldwide recognition as being the month of hiring – at least not for fulltime permanent positions – but the numbers were not what economists expected them to be. Despite what the numbers say, hiring in the IT industry is poised to be strong in the first month of 2014.
According to numbers from the Bureau of Labor Statistics, 74,000 jobs were added during the month of December, a number that is shy of the 197,000 jobs that was predicted to be added by leading economists. The adjusted job gains reported in November showed a bit of improvement, rising from 204,000 jobs added to 241,000.
The Labor participation rate fell from 63.0% to 62.8%, which was accompanied by a decrease in unemployment as well – dropping from 7.0% to 6.7%. While this 490,000 decrease in the employment numbers might bring a smile to the faces of some, a deeper look into its relation to the labor participation rate will reveal a different story. The decline in unemployment can be attributed to a decrease in job seekers on the active market rather than jobs being filled.
Is there a silver lining for job seekers in the IT industry?
Two of the three major areas in the Information Technology industry saw decent gains in employment in December. Despite the holiday parties and budget meetings, 4,600 jobs were added in telecommunications and 1,700 were added in data processing, hosting, and related services. The only sectors to see a decline in jobs were computer systems design and related services – a decrease of 2,300.
The good news, if you follow the predicted trends from year to year, is that hiring almost always increases significantly in January. As budgets are formed, companies will seek to onboard new employees to meet their goals for the year – there should be a boost in hiring for the first month of 2014.
Whether you are a candidate seeking employment or a company looking to fill a position, January is the right month to make it happen. Overall, the tech sector continues to expand and our recruiters have a healthy stock of positions and candidates available. Submit your resume or call a recruiter today.
By Kevin Withers