IT Hiring Market Report – June 2012
The Dice IT Hiring Market Report is a roundup of news related to technology hiring, compiled from various sources by the Dice Editorial Staff.
Tech Bright Spots in Disappointing Jobs Report
Two tech-related sectors bucked the trend of last month’s labor market report. While the overall unemployment rate rose to 8.2 percent, the number of jobs in computer systems design and related services increased by 2,600 jobs, or 5.3 percent. Meanwhile, the management and technical consulting sector added 3,100 positions for a rise of 2.2 percent.
CFOs Expect Tech Hiring to Continue
Although CFOs plan to keep a tight grip on their money over the next year, they will keep spending on technology. A survey by Duke University and CFO Magazine found that finance executives expect tech hiring to grow 5 percent during the period. They also predict overall IT spending will rise by 8 percent, up from 6 percent last quarter.
That dovetails with a Dice survey that found 73 percent of IT recruiters and hiring managers expect companies to add more tech staff during the second half of 2012. That’s up from 65 percent six months ago, when they were asked about their expectations for the first half of the year.
Tech Job Growth in Smaller Markets
High tech job growth soared 72.4 percent in Jacksonville, Fla., over the past decade, says Forbes. Another area with impressive growth: Salt Lake City, which jumped 31 percent as companies like Adobe, Electronic Arts and Twitter set up shops there. The number of tech jobs in Columbus climbed 31 percent, as well.
Surprising Salary Declines in California
The salaries of computer and information scientists in California dropped by 6 percent during the first quarter when compared to the same period of 2011, according to the state’s Employment Development Department. Some observers speculate average compensation was pressured by aggressive hiring of grad students by Web and mobile companies. If that’s the case, starting salaries may have climbed, they say. Another odd decline: The salaries of database administrators, which dropped about 1 percent.
Companies Paying More for Data Scientists
The use of Big Data is driving large enterprises to find data scientists who combine skills in business, analytics and IT. The demand is pushing salaries higher, into the $110,000 to $140,000 range. That outpaces the average Silicon Valley tech worker’s pay of about $104,000.
Startups Warned on Funding
Technology startups should lower their funding expectations in the wake of Facebook’s underwhelming IPO, Paul Graham, the influential head of incubator and angel investor Y Combinator, told his stable of companies. The businesses that should be most careful, he said, are “the ones that raise a lot on easy terms, and are then led thereby to spend a lot, and to pay little attention to profitability.” When markets tighten up, he warned, “that kind of startup gets destroyed.”