Don't look now, but IT salaries are static and hiring is slowing, according to a survey of the job market.
Management consulting firm Janco Associates and eJobDescription.com's 2016 IT Salary Survey found that salaries for IT professionals in North America had increased only 1.39 percent in the past 12 months, with demand for IT professionals waning. The increase in the previous year had been close to 3 percent.
According to U.S. Bureau of Labor statistics, the U.S. job market for IT grew by 125,700 positions in 2015, compared to 129,400 in 2014; 74,900 in 2013; and 62,500 in 2012.
"What's happening is demand for new IT activity is decreasing because of uncertainty in the business community," said M. Victor Janulaitis, Janco CEO, in an interview. These uncertainties include the economy, situations in Europe and China, and the Presidential race.
Janco's research pours some cold water on what have been glowing job market assessments recently from Dice.com. Foote Partners, though, found a slowdown in IT job growth late last year.
Janulaitis sees tough going for IT job seekers. "If you don't have the exact skills an organization is looking for, it's going to be very difficult for you to find a position," he said. And people with jobs will find there won't be much of a salary increase because there is no pressure to do so.
The Janco research found that from January 2015 to January 2016, the total mean compensation for all IT professionals had increased from $81,583 to $82,483. In large enterprises, the median compensation rose 1.48 percent, from $83,872 to $85,110.
Janco surveyed 252 companies with revenues of at least $500 million and 722 companies with revenues less than $500 million as part of its research. Salary data for the survey drew from 78 U.S. cities and 23 Canadian cities.
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