Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Study: IT worker unemployment at 'unprecedented' levels
Computer World ^ | SEPTEMBER 17, 2003 | Patrick Thibodeau

Posted on 09/18/2003 4:03:48 PM PDT by Mini-14

About 150,000 IT positions were lost in 2001 and 2002

SEPTEMBER 17, 2003 ( ) - DALLAS -- Unemployment for IT workers reached 6% this year, an "unprecedented" level for a profession that was once a sure path to a well-paying job, according to a new study that also found that foreign-born workers now account for a fifth of all IT employees in the U.S. The report also found that the percentage of laid-off foreign-born IT workers is slightly higher than for U.S.-born workers.

The study, which was presented at a congressional forum today by the Washington-based nonprofit group Commission on Professionals in Science and Technology (CPST), affirms what IT managers have seen in response to help-wanted ads. "I'm sure the number is 6% or higher," said Michael Russo, a data center manager at Wyeth, a Madison, N.J.-based pharmaceuticals giant.

A recent third-shift job in the company's operational data center drew 168 applicants. "There are a lot of people who are out of work," Russo said.

Randy Rosenthal, manager of computer operations at Southwest Securities Group Inc. in Dallas, has seen the same trend: highly qualified people with multiple degrees applying for jobs IT managers once had trouble filling. "That tells me that 6% has hit the IT area pretty hard," he said.

About 150,000 IT positions were lost in 2001 and 2002, about two-thirds of them in programming, the report said.

Two years ago, Phoenix-based water and electric utility Salt River Project had an open position for an operations analyst and received about 15 applications; last year, it posted a similar position and had 50 applicants. This year the 800,000-customer utility has a hiring freeze, said operations manager Dewayne Nelsen.

There was a sense of grim resignation about the latest report among some IT managers at a conference held here by AFCOM, an Orange, Calif.-based data center managers user group.

Several IT managers, some requesting that their names not be used, told of data center consolidations that led to layoffs or offshore plans. For the future, automation improvements and the development of "self-healing" applications will also hurt some IT career paths. The career advice from one IT manager was to avoid the technical aspects of the profession and focus more on IT management training.

IT unemployment rates were as low as 1.2% in 1997, shooting up to 4.3% in 2002.

But the overall number of IT jobs has seen remarkable growth, tripling in the past 20 years, according to the CPST, which conducts labor force and educational research for a range of scientific organizations and companies. The IT labor force grew from 719,000 jobs in 1983 to 2.5 million at its peak in 2000.

With the growth of IT came an increasing reliance upon foreign workers. This increase was facilitated by legislation expanding the use of H-1B visas, which allow skilled foreign workers to take jobs in the U.S. for up to six years. A cap of 195,000 on the number of visas that can be issued has been in place for each of the past three years, but the cap will drop to 65,000 on Oct. 1. L-1 visas, which allow companies to transfer foreign employees into the U.S., have tripled in use.

The report, sponsored by the Alfred P. Sloan Foundation in New York and the United Engineering Foundation, an umbrella organization for engineering groups, draws no firm conclusion on the offshore outsourcing trend. But it recognizes predictions made by analyst firms, including Gartner Inc., which in July estimated that 10% of all U.S. professional jobs in IT services companies would be transferred overseas, along with 5% of IT positions in other businesses.

Long term, the report says more research is needed on the effects of offshore outsourcing and the workforce issues raised by it: "Can the U.S. continue to be a prime market for the rest of the world if it is a stronghold for neither manufacturing nor technical services?" the report asks. "What are the long-run implications of these trends for American standards of living?"

The CPST report concludes that while the job market for IT professionals has weakened, it remains sizable.

"For the near run, normal turnover alone will generate opportunities for people who are determined to work in the field," the report said. "The long-run outlook is more problematic. The United States does not lack, either now or in the foreseeable future, sufficient numbers of capable people who would like to work in IT. But those people may not be willing to conclude that long-run demands for their services will be good enough to support IT as a sensible career choice."


TOPICS: Business/Economy; Foreign Affairs; Front Page News
KEYWORDS: employment; h1b; h1bvisas; l1; l1visas; unemployment
Navigation: use the links below to view more comments.
first previous 1-20 ... 121-140141-160161-180181-185 next last
To: blueriver
What about the farm bill?

Most farmers are probably sole proprietors or partnerships.

These "workers" are not here for the benefit of the general public, they are here for the benefit of corporations.

The point of my comment was that the benefits of the corporatons accrue to (i) owners, through profits; (ii) employess, through wages, pensions, and benefits, and (iii) communities, through philantropic acts of the firms.

If you talk about welfare, you should talk about the impact on the above-listed entities. I repeat: there is no such thing as corporate welfare; it's been invented by the leftists to make you angry.

Now, if you look at corporations, you will find that the "rich" own a very minor part of them. Most of us own our corporations -- though pension funds, 401Ks, etc. That is to whom the benefits received by the companies go.

This includes hiring foreign workers. If XYX Company hires an illegal alien (no, I do not condone that), YOU benefit from that through 401K and your pension fund, as well as the taxes paid on its profit by the corporation. When that alien educates his kid in school for which you pay, YOU loose. As you can see now, for YOU there are both pluses and minuses.

Whatever YOUR pluses and minuses are, they have nothing to do with corporations.

I do not blame you for throwing stones, but you should know better at whom to throw them. And, please, stop repeating the leftist propaganda.

141 posted on 09/19/2003 8:53:06 PM PDT by TopQuark
[ Post Reply | Private Reply | To 138 | View Replies]

To: TopQuark
I do not blame you for throwing stones, but you should know better at whom to throw them. And, please, stop repeating the leftist propaganda.

Yes lets not discuss the topic like civilized human beings with different opinions. You win - not interested in playing your stupid name calling games.

142 posted on 09/19/2003 9:30:23 PM PDT by blueriver
[ Post Reply | Private Reply | To 141 | View Replies]

To: blueriver
You win -

Winning is not everything, and it was farthest from my mind when I wrote to you.

I merely tried to explain something that may have been of help.

not interested in playing your stupid name calling games.

I am sorry if you found my post stupid. It appears it offended you --- sorry about that too.

Have a good night.

143 posted on 09/19/2003 9:34:27 PM PDT by TopQuark
[ Post Reply | Private Reply | To 142 | View Replies]

To: blueriver
Well, sorry if I "poured salt in a wound", but I was not speaking to any one persons case. I was speaking generally. My point was that I don't believe that the job market is all that bad. True, that may be subjective. I have heard many cases like the ones you describe, I just can't fathom how it's happening, especially in light of the unemployment statistics which tell me that some 94% of software engineers are currently employed. As for the C language, it really doesn't matter because I'm about to make a career change anyway. I'm going to be pursuing a career in something I've dreamed of doing since I was a child. I am very much aware that this career may not pan out as nice as software engineering has. But I have never shirked from wise, calculated risks for my own betterment. I've noticed that most people, when contemplating the job market and being unemployed will hesitate, pause or draw a breath. I won't. If market economics suggest it, I'll move to another job in a flash. And this is not spoken from the vantage point of privilege: I grew up on the far, far side of the railroad tracks so I know what hurt is.
144 posted on 09/19/2003 9:51:01 PM PDT by ableChair
[ Post Reply | Private Reply | To 101 | View Replies]

To: Gorzaloon
Yep, I'd say the averages pretty much matched in the end. I think that's a great creed and we need more like that in this self-pity society of ours. But I digress.
145 posted on 09/19/2003 9:55:44 PM PDT by ableChair
[ Post Reply | Private Reply | To 86 | View Replies]

To: TopQuark
I do not get your posts. I gave you my opinion and you gave me a reply, of which I normally would have responded to except that at the bottom of your reply you pretty much told me to stop throwing stones and to keep my leftist opinions to myself. Which in essence stopped any type of legitimate discussion of the topic. I did not find most of your post stupid only the last two sentences and I was not offended. I just know when to take a hint.
146 posted on 09/19/2003 9:56:23 PM PDT by blueriver
[ Post Reply | Private Reply | To 143 | View Replies]

To: Jim Cane
Yea dude, but still. What if it were 20%? That means you would only have to out-shine 20% of the real and potential work force. You only have to beat out the bottom two deciles. That should be encouraging, shouldn't it?
147 posted on 09/19/2003 10:00:35 PM PDT by ableChair
[ Post Reply | Private Reply | To 106 | View Replies]

To: blueriver
You're confusing government hand-outs with the freedom to choose. Just because the government allows corporations to do smart things doesn't make it a government hand-out. There's a difference.
148 posted on 09/19/2003 10:05:29 PM PDT by ableChair
[ Post Reply | Private Reply | To 138 | View Replies]

To: ableChair
I've noticed that most people, when contemplating the job market and being unemployed will hesitate, pause or draw a breath.

Yes, most people that are finding themselves "unemployed" have been working steadily for the last 20 years. It is a big adjustment to go from having a job and a career to sitting around thinking about what you want to do with the rest of your life. Most of the people I know are moving into different careers because they can not afford to wait for the job market to turn around. I wish you the best in your new career path.

149 posted on 09/19/2003 10:11:36 PM PDT by blueriver
[ Post Reply | Private Reply | To 144 | View Replies]

To: ChemistCat
They don't need to prevent it, but they should not abet it! Giving work visas to foreign workers when American workers who can do the same jobs are unemployed is just plain wrong!
150 posted on 09/19/2003 10:47:13 PM PDT by KeyTapper
[ Post Reply | Private Reply | To 100 | View Replies]

To: TopQuark; blueriver
If this is not corporate welfare what is it?

Nothing you can name, no matter how egregious, no matter how clear cut, counts as "corporate welfare" in TopQuirk's eyes.

151 posted on 09/19/2003 11:08:28 PM PDT by null and void (Tomorrow's another day - and there's always the FBI files...)
[ Post Reply | Private Reply | To 141 | View Replies]

To: zip
One question - what's an IT?


152 posted on 09/19/2003 11:18:32 PM PDT by Hank Rearden (Dick Gephardt. Before he dicks you.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Hank Rearden
I can't believe it took 152 posts before that question was properly answered.
153 posted on 09/19/2003 11:19:29 PM PDT by Hank Rearden (Dick Gephardt. Before he dicks you.)
[ Post Reply | Private Reply | To 152 | View Replies]

To: KeyTapper
It is wrong if one assumes that we live in a nation. However, if one assumes that we live in an empire, then it all makes perfect sense.

Now, for the big question: Do we live in a nation or an empire? Take your time, no need to hurry your answer.
154 posted on 09/19/2003 11:21:09 PM PDT by Elliott Jackalope (We send our kids to Iraq to fight for them, and they send our jobs to India. Now THAT'S gratitude!)
[ Post Reply | Private Reply | To 150 | View Replies]

To: StolarStorm
My daughter is a " headhunter " for computer people. She has more jobs, going unfilled, than you can imagine. The pay is good, but many of the prospects aren't skilled enough, have lousy "people skills ",and/or don't want to move, even though they've been out of work for a long time.

Many of those whiners, here, COULD get jobs, if they put as much work into finding a new job, as they do in typing copious posts of outrage.

155 posted on 09/19/2003 11:24:50 PM PDT by nopardons
[ Post Reply | Private Reply | To 99 | View Replies]

To: Hank Rearden
I can't believe it took 152 posts before that question was properly answered.

Wrong answer - that's a COUSIN It.

This is an IT!:


156 posted on 09/19/2003 11:49:49 PM PDT by null and void (Tomorrow's another day - and there's always the FBI files...)
[ Post Reply | Private Reply | To 153 | View Replies]

To: KeyTapper
I was just being a brat--see my post #127.
157 posted on 09/20/2003 6:31:19 AM PDT by ChemistCat (I have two daughters. I know peacemaking. What we're doing in Israel ain't it.)
[ Post Reply | Private Reply | To 150 | View Replies]

To: ChemistCat
#131 cracks me up.

Seriously, I'm trying to determine the best new language to pick up. What's everybody else picked up lately?

158 posted on 09/20/2003 6:59:36 AM PDT by txhurl
[ Post Reply | Private Reply | To 157 | View Replies]

To: txflake
I'm trying to determine the best new language to pick up.

Hindi

159 posted on 09/20/2003 7:53:05 AM PDT by null and void (Tomorrow's another day - and there's always the FBI files...)
[ Post Reply | Private Reply | To 158 | View Replies]

To: txflake
If I had talent for language, I'd study either Korean or Arabic right now. That is what will be needed--people who understand technology and the languages of our enemies. It's not the way to get rich, but it might be the way to keep your grandchildren from having to pray five times a day facing Mecca.
160 posted on 09/20/2003 8:01:00 AM PDT by ChemistCat (I have two daughters. I know peacemaking. What we're doing in Israel ain't it.)
[ Post Reply | Private Reply | To 158 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-20 ... 121-140141-160161-180181-185 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson