May, 2005--More of the Same
For some time, we have been seeing a positive technology labor market in the New York area. More firms are hiring people faster. Consultants are often finding work quickly. The memory of the past few years is starting to fade as people discover that interviews and job offers are coming more easily than they have in several years.
What are firms hiring? Managers and staff. Applications professionals and infrastructure professionals. J2EE-based and .NET based. Business analysts. Security professionals. You name it. Companies are trying to hire it.
Despite the periodic story of some major company laying off people, fewer of these announcements are occuring and more companies are hiring again.
Behind the curtain, though, is one disturbing fact--salaries and consulting rates haven't really changed in several years. The media will talk about the impact of offshoring upon the market but, frankly, offshoring was occuring for many firms five years ago (and longer) but the same wages and consulting rates that existed for developers five, seven or even ten years ago are pretty much in place today.
Anecdotal reports from search professionals around the US suggests this is not just a New York phenomena but a national one.
With unemployment rates in the New York area declining, I believe that salaries will start to creep as companies notice that there isa labor shortage. Yes, you read that right. A shortage of people who have the skills being sought.
How is that possible?
First of all, despite the quantity of available talent, the skills of the people often don't match what's in demand.
Second, and most importantly, there were very few people who entered the technology labor market in the past few years. What student went to college to get a degree in Computer Science while their parents were at home and out of work. H1B's consultants were cut by two thirds during the recession for political reasons even though the skills of many of the out of work US workers failed to match up with requirements (An out of work project manager will not get hired for a J2EE developers job in good or bad times).
Firms are being more aggressive in retaining talent. Counteroffers are becoming far more normal again as firms try to hold on to what they have.
The impact of the recession is that people are afraid to look at alternatives for fear thatthey might get laid off.
A person with good skills can profit bya strategic job change. I believe in little while salaries will increase again as firms notice that their needs are not being met.
Jeff Altman
Concepts in Staffing
What are firms hiring? Managers and staff. Applications professionals and infrastructure professionals. J2EE-based and .NET based. Business analysts. Security professionals. You name it. Companies are trying to hire it.
Despite the periodic story of some major company laying off people, fewer of these announcements are occuring and more companies are hiring again.
Behind the curtain, though, is one disturbing fact--salaries and consulting rates haven't really changed in several years. The media will talk about the impact of offshoring upon the market but, frankly, offshoring was occuring for many firms five years ago (and longer) but the same wages and consulting rates that existed for developers five, seven or even ten years ago are pretty much in place today.
Anecdotal reports from search professionals around the US suggests this is not just a New York phenomena but a national one.
With unemployment rates in the New York area declining, I believe that salaries will start to creep as companies notice that there isa labor shortage. Yes, you read that right. A shortage of people who have the skills being sought.
How is that possible?
First of all, despite the quantity of available talent, the skills of the people often don't match what's in demand.
Second, and most importantly, there were very few people who entered the technology labor market in the past few years. What student went to college to get a degree in Computer Science while their parents were at home and out of work. H1B's consultants were cut by two thirds during the recession for political reasons even though the skills of many of the out of work US workers failed to match up with requirements (An out of work project manager will not get hired for a J2EE developers job in good or bad times).
Firms are being more aggressive in retaining talent. Counteroffers are becoming far more normal again as firms try to hold on to what they have.
The impact of the recession is that people are afraid to look at alternatives for fear thatthey might get laid off.
A person with good skills can profit bya strategic job change. I believe in little while salaries will increase again as firms notice that their needs are not being met.
Jeff Altman
Concepts in Staffing
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