Outlook for IT Jobs Seen Improving

The outlook for hiring in information technology jobs--one of the hardest hit sectors in last year’s downturn--was starting to improve even as the national unemployment rate touched its highest level in more than 7 1/2 years, a report released today said.

Hiring managers report they will attempt to fill 1.1 million information technology jobs in the next 12 months, according to the report by the Information Technology Assn. of America industry group.

If that estimate is on target, the information technology job market is in the midst of a significant recovery after a sharp contraction last year. “If just half of these jobs are filled, the size of the IT work force will be restored to pre-2001 levels,” the trade group said in its report.

In 2001, the U.S. information technology work force shrank 5%, dropping to 9.9 million workers and reflecting the effects of the economic downturn and a near halt to new spending on corporate computer systems, ITAA said.

At the same time, spending on computer and communication products and services grew less than 1%, to $813 billion last year--far slower than the average 8% growth over the prior three years.

For growth to come back in related jobs in a meaningful way, corporate investment needs to start to recover now as well, the Arlington, Va.-based group said.

“We’re coming out of a recession, and the lock that’s been on IT spending over the last 12 months is beginning to become unlocked,” ITAA President Harris Miller said.

The nation’s unemployment rate jumped to 6% in April, the highest level since August 1994 as job seekers returned to the market faster than U.S. companies added new positions.