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New Data Suggest IT Hiring Increasing
November 21, 2014 by admin
Filed under Around The Net
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Whenever IT hiring increases, as it did last month, the default explanation from analysts is this: The economy is improving.
That might be true, and it may well explain the U.S. Department of Labor’s report today that showed the U.S., overall, added 214,000 jobs last month.
Of that total employment gain, IT hiring grew by 7,800 jobs in October, compared with a gain of 6,900 jobs in September, according to TechServe Alliance, an IT industry group.
Another IT labor analyst group, Janco Associates, calculated last month’s IT gains at 9,500 jobs.
Government data can be reported in different ways, depending on which job categories are included in the IT job estimates, and it is why analysts report job numbers differently.
Hiring trends are also affected by Labor Department adjustments, and the government’s adjusted data adds nearly 25,000 telecom jobs over the past two months, according to Janco. Because of this adjustment, Janco termed the recent growth in IT over the past several months “explosive,” while TechServe put last month’s results as “modestly stronger.”
There is no one reason for October’s gain. An improving economy may be at the heart of any answer. Independent of the government numbers, Computer Economics, in a recent report on contingent versus full-time hiring, said it is seeing a drop in the use of contract workers at large companies and more reliance on full-time workers, which is a sign of an improving economy.
IBM Freezes Employee Salaries
IBM this year won’t be granting any pay raises to its executives or to many of its workers in its Global Technology Services division.
The company said it is only giving pay raises to workers with high-demand skills that the company needs.
IBM customarily issues pay raises during the mid-year period.
“There are targeted skill groups of employees that are eligible for salary increases in 2012,” said Trink Guarino, an IBM spokeswoman. “No executives will be eligible for salary increases.”
Business Insider Tuesday published an internal IBM memo announcing the action that was sent to employees from Global Technology Services executives.
One IBM employee, who didn’t want to be identified, said he believes the lack of pay raises “is part of IBM’s hyper-aggressive plan to meet its 2015 roadmap.”
That IBM roadmap lays out an aggressive growth strategy, which calls for increasing the company’s earnings per share by $20 by 2015.
The employee noted that the company has been spending billions in stock buybacks, but says it can’t afford pay increases.
Rather than reaching profit goals “the old-fashioned way by increasing market share, developing and selling new products,” the company is “maniacally focused on cutting labor costs and off-shoring work to low-cost countries,” the employee said.