U.S. IT Jobs Dip 2% As Downturn Hits

[OhioChick]

Cuts in computer scientists and systems analysts, support specialists, and software engineers fueled the decline, a new Bureau of Labor Statistics report shows.

By Chris Murphy
InformationWeek
October 3, 2008 04:44 PM

The number of people employed in U.S. information technology jobs dropped 2% from the second quarter, one of the first signs that the broader economic slowdown is leading to IT job cuts, according to a government report issued Friday.

U.S. IT employment had kept growing over the first half of the year, according to Bureau of Labor Statistics quarterly household survey data, but in the past three months fell to just over 4 million, from 4.1 million last quarter, led by cuts in computer scientists and systems analysts, support specialists, and software engineers.

The IT job losses come amid rising unemployment across the U.S. economy, including the managerial and professional ranks. Managerial and professional unemployment hit 3%, from 2% at the beginning of the year, according to the bureau's data. IT unemployment at 2.3% is around the level it has been all year, as the pool of total IT workers -- employed and unemployed -- seems to react quickly to the availability of jobs. The overall unemployment rate stayed at 6.1%, a five-year high.

http://www.informationweek.com/news/management/trends/showArticle.jhtml?articleID=210605650

[ChromeFoundry]

1. great, are the vultures circling over my house yet? n/t

[OhioChick]

2. They've been.....

Just circling at a faster rate now.

[AdHocSolver]

3. The REAL unemployment numbers are much higher than what the government puts out.

When a laid off person's unemployment compensation runs out, that person is no longer counted as unemployed, even if they haven't found a job yet.

If a person takes a part-time job at minimum wage, while still looking for full-time work, they are no longer considered unemployed. (Underemployed is not a category.)

This sleight of hand by the government was explained to me over 20 years ago by a lady who worked at the unemployment office. There were a lot of layoffs occurring in our area at the time (I even saw a former boss of mine at the unemployment office), so I spent quite a few weeks visiting that place. The lines were long.

About the time my unemployment "comp" was about to run out, I was in the line for which this lady was handling the claims. I thanked her for doing a good job, and she told me that, since a lot of people's unemployment claims were ending, the government was closing their office and laying everyone off. To say that she was unhappy, is an understatement.

REAL unemployment is easily double digits, maybe high double digits. The same fraud is perpetrated with the inflation figures. Since Cost of Living adjustments are based on the inflation rate, those figures are manipulated to be much lower than the actual increase in costs to the consumer.

The numbers are juggled in several ways. Either the mix of goods are chosen to lower the inflation figures, or the costs are weighted differently to make the inflation rate appear lower, or the quantities enclosed in a package unit are reduced by the manufacturer, even as the price per unit rises.

In the latter case, as an example, a package of ice cream I bought on sale recently was priced at $3.50 for the carton. Close inspection revealed that the carton contained 56 ounces. A year ago, the carton for the same brand contained 64 ounces.

A box of facial tissues used to contain 175 tissues. Now, even with a higher price tag, a box contains only 160 tissues.

The inflation rate is calculated using the cost of a box of tissues, not per 175 tissues purchased. So the actual increase in cost is covered up by the fact that the box contains fewer tissues.

In the case of your example, IT workers who use up their unemployment compensation are no longer counted as unemployed. Similarly, if your IT professional takes a job as a janitor (excuse me! Custodial Services Technician), then he no longer is counted as an unemployed IT worker. That is how the figures are manipulated.

As for "the pool of IT workers reacting quickly to the availability of jobs". Here's how that works. An acquaintance of mine, a database programmer, lost his job that he had for about ten years. While he was looking for a job in the IT field, which took him almost a year to find, he took a job unloading trucks at the local airport. That is how the IT worker pool reacts quickly to changes in the job market.

[ChromeFoundry]

4. Excellent post.

Thanks for bring to light issues that are commonly overlooked.