No Job Growth In IT Industries In January - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Infrastructure

No Job Growth In IT Industries In January

Even employment among the IT services firms, which has shown steady growth this past year, hardly budged in January.

Employment levels in IT-related fields remained relatively flat in January as the overall workforce rose. The Labor Department reported Friday that nonfarm employers added 145,000 jobs last month, but IT didn't contribute to that growth.

Even employment among IT services firms, which has shown steady growth this past year, hardly budged in January, shedding a miniscule and statistically irrelevant 300 jobs. IT services--officially tagged as computer-systems design and related services--employed 1,178,400 Americans in January. Still, that's a gain of 55,000 jobs from a year earlier, a 4.9% increase. As a comparison, overall nonfarm job growth was 1.7% in the past year.

Other IT sectors didn't fare as well. Computer and peripheral equipment manufacturers discarded 1,200 jobs in January, employing 208,100. That's 6,700 fewer jobs than in January 2004, a 3.1% decline.

Among Internet service providers, search portals, and data-processing companies, which include software makers, employment fell by 1,100 in January to 388,700. Still, that's a gain of 2.75% over the past 12 months.

Overall, nonfarm employment in the United States stood at nearly 132.6 million in January. Some economists had predicted that nonfarm employment last month would be about 55,000 higher than it was. "There's still a level of frustration," economist Ken Mayland, president of ClearView Economics, told The Associated Press. "The economy is producing a moderate amount of job growth but not a satisfying amount of job growth. That means there is a limited number of new opportunities for workers."

Nonetheless, the nation's unemployment rate--based on a different Labor Department survey--fell to 5.2% in January from 5.4% in December. The January jobless rate was the lowest since September 2001. The unemployment rate reflects the number of people holding jobs or looking for work. Not counted are people no longer in the workforce. The size of the labor force fell by about 224,000 people in January.

To determine the unemployment rate, the government surveys 60,000 households each month. The survey that reflects the size of individual industries and the overall workforce size is based on a monthly survey of 160,000 businesses and government agencies. Results for January from both surveys are preliminary. Monthly data is seasonally adjusted.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
2021 Outlook: Tackling Cloud Transformation Choices
Joao-Pierre S. Ruth, Senior Writer,  1/4/2021
News
Enterprise IT Leaders Face Two Paths to AI
Jessica Davis, Senior Editor, Enterprise Apps,  12/23/2020
Slideshows
10 IT Trends to Watch for in 2021
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/22/2020
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Video
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
Slideshows
Flash Poll