Archived MATRIX Monitors

Year Qtr Newsletter Content Preview
2010 Qtr 2 The second quarter provided us with further optimism as IT employment increased 5% and IT job growth continued to rise, including postings for direct hire positions. Research suggests that tech pros are generally well compensated and employers are budgeting an average of 2.5% for raises this year. However, there is some evidence that many IT workers may be prepping to look for new jobs over the next year. Forecasters believe global IT spending will continue to rise in 2010 and is expected to hit $3.35 trillion. This is somewhat lower than what was originally forecast due to economic conditions in Europe. In general, the IT market is steadily improving in 2010.
MMonitorQ210.pdf
2010 Qtr 1 A quarter of the way through 2010 and we are seeing indications of a strengthening IT market. February saw one of the strongest month-to-month gains in IT jobs since 2008. Online job demand increased the last two months, signalling that more companies intend to start hiring again. Average IT salaries experienced a modest gain of 1% nationally over the last six months for 20 of the most common IT positions tracked by MATRIX. Following a decline of 4.5% in 2009, IT spending is forecasted to increase 3.2% this year to $1.5 trillion, returning to prerecession levels. Overall, research shows a stronger outlook for the tech industry in 2010.
MMonitorQ110.pdf
2009 Qtr 4 Forecasters are predicting an uptick in hiring for 2010 with 20% of employers planning to increase their full-time staff, up from 14% in 2009. As we saw in 2009, there is higher demand for temp labor employment, with an overall 23% increase since July 2009. Several sources reveal that more than half of employers plan to increase salaries for existing employees as well as increase their IT spending for 2010. Another positive trend is the GDP seeing accelerated growth in the last quarter, with its largest quarterly increase since the third quarter of 2003. In general, the market research points to the year 2010 as one of rebuilding and stabilization.
MMonitorQ409.pdf
2009 Qtr 3 Although the job market is still not great, we are seeing an increase in the number of temporary and contract job opportunities, particularly for IT job seekers.We find there is still strong demand for certain skill sets despite the recession; however, the bi-annual MATRIX Compensation survey shows an average 4% decline in national compensation over the last six months for 20 common IT positions. Still, research shows 27% of companies expect to increase their IT budgets for 2010. Overall, our findings show small steps towards recovery in the market, but we still have a ways to go.
MMonitorQ309.pdf
2009 Qtr 2 We are experiencing continued uncertainty surrounding the current labor and economic market. It comes as no surprise that tech layoffs are forecasted to continue for the next six months. Still, many believe hiring will have to pick back up towards the end of the year. Although pay for IT skills has dropped overall, certain skill sets have increased in pay. IT budgets have declined or remained flat during the first half of the year, but studies show signs of IT spending stabilizing and increasing for some companies as the year goes on. Overall, there are signs of recovery and growth projected for the end of this year.
MMonitorQ209.pdf
2009 Qtr 1 Yes, overall unemployment has escalated from 4.8% to over 8% in the past year. However, within IT, unemployment is 3.2%—less than half that of the economy as a whole. Also, we find there is still a strong demand for certain skill sets even though others may be at a higher risk.Whereas just a few months ago the debate was whether the U.S. economy was in a recession, the talk now centers on whether it has reached bottom and when we will see light at the end of the tunnel.
MMonitorQ109.pdf
2008 Qtr 4 Businesses and consumers alike have become more conservative in their spending to better absorb the downturn in our economy. A slowdown in IT proved inevitable despite the overall health of our industry. Nevertheless, future signs point toward continued stability for IT organizations, both near and long-term, unlike the era of the dot-com bust which saw so many companies close their doors. IT organizations, for the most part, remained lean over the past 4-5 years and today are recognized as key business enablers rather than overhead. As well, technology has well proven itself for increasing efficiency and productivity throughout all levels of an organization.
MMonitorQ408.pdf
2008 Qtr 3 Research shows that the technology industry continues to be healthy despite continued weakness in the economy as a whole. As well, unemployment within IT remains very low—less than one-half that of the labor market as a whole.
MMonitorQ308.pdf
2008 Qtr 2 Are we in a recession or are we not? That determination has yet to be made by economists and government statisticians. However, there is no doubt that the U.S. economy has slowed and the financial services and construction industries are experiencing challenging times. Other industry sectors are growing—led by energy producers and their service companies. Most companies in other industries appear to be on solid ground, but they're understandably jittery.
MMonitorQ208.pdf
2008 Qtr 1 The tech industry continues to be healthy despite growing concerns about weakness in the U.S. economy. For example, IT employment increased 8.5% last year whereas U.S. job creation overall was up less than 1%. Clearly, the predominate thinking in corporate America today is that technology is a business enabler rather than being viewed as overhead. Pay raises in IT have moderated along with those in other fields. However, top shelf IT pros with leading edge skills command top dollar and have their pick of jobs and short-term assignments.
MMonitorQ108.pdf
2007 Qtr 4 Various research data and other analysis shows that despite the slowing U.S. economy, technology labor is very much in short supply and, as a result, compensation costs are accelerating. That mirrors what we see in the field as companies are finding it increasingly difficult to source ‘A’ level candidates in order to increase staff or replace those workers who have found employment elsewhere. One result is that companies are becoming less demanding in their specifications for skills and certifications.
MMonitorQ407.pdf
2007 Qtr 3 This quarter we find that the overall U.S. economy is slowing and will likely reach a “soft landing,” thereby avoiding a recession, according to forecasters. Companies continue to be optimistic in their hiring and plan to increase their overall IT spend over the next year. The short supply of qualified talent is increasingly impacting IT organizations both in increased time to fill their open positions as well as rising costs of compensation.
MMonitorQ307.pdf
2007 Qtr 2 Although nearly one-third of large companies are projecting reductions of their IT staff, those losses are projected to be more than made up through the hiring plans of mid- and small-size companies that retain the larger percentage of the workforce.We also found that the intensity level of competition for key tech talent apparently will not lessen any time soon due to the 51% decline since 2000 in the enrollment of computer science students at our nation’s colleges.
MMonitorQ207.pdf
2007 Qtr 1 The tech industry continues to be healthy despite growing concerns about weakness in the U.S. economy. For example, IT employment increased 8.5% last year whereas U.S. job creation overall was up less than 1%. Clearly, the predominate thinking in corporate America today is that technology is a business enabler rather than being viewed as overhead. Pay raises in IT have moderated along with those in other fields. However, top shelf IT pros with leading edge skills command top dollar and have their pick of jobs and short-term assignments.
MMonitorQ107.pdf