The New Year is in full swing and the employment landscape is looking optimistic as many people make New Year’s Resolutions to find new jobs. But does anyone really know what to expect for the year ahead? The tech sector in particular had a stable 2014, but what does this mean for the future of the IT industry?
Increased IT Hiring to Come in 2015
According to TechServe Alliance, IT employment saw a steady uptick every month of 2014, concluding the year with a 3.3% increase from the previous year. This continued growth in the tech industry sets the stage for a positive 2015.
Increased IT employment essentially means increased hiring, and Dice.com, a national IT job board, agrees with this trend and what it bodes for coming months. Reports from Dice’s annual survey state that 72% of organizations plan to hire IT professionals in early 2015, increasing their IT staff by 10%.
On a broader level, a survey from Careerbuilder spanning all industries cites that 36% of companies expect to hire in 2015, which is up from just 24% this time last year. Careerbuilder adds that this increase represents the “best outlook since 2006.”
These statistics offer a confident and optimistic perspective of the year to come.
A Look at IT Hiring in Southern California
A laser focus on the Southern California region uncovers the same positive viewpoint, with reports from the Los Angeles County Economic Development Corporation (LAEDC) stating a 3.2% increase in tech employment by year-end of 2014 and continuance of this trend in 2015.
The LAEDC report adds that California as a whole is outperforming the national economy and sees decreasing unemployment rates in every county. In fact, Orange County has the lowest unemployment rate in California at just 5.7%.
At a glance, the tech industry in Southern California has above-trend growth throughout 2014, and this holds hope for continued progress in 2015. Orange County is one area in particular that has a thriving high-tech community, with a growing focus on mobile computing, big data, and cyber security.
Increased IT Hiring Leads to Increased IT Salaries
With these significant gains in IT hiring and employment as well as increasing tech investment and spending, the question inevitably becomes, at what cost?
Careerbuilder hits the nail on the head in stating that this increased activity in tech hiring leads to a competitive environment, inevitably resulting in salary surges. Dice.com supports this perspective, in stating that 64% of hiring managers have seen candidates ask for more money. Ultimately, more hiring means increased job opportunities, which makes job seekers more confident in their job search.
Predictions of salary increases across all industries is at 3%, which is pretty similar to last year, according to a report from the Society for Human Resource Management (SHRM), but the tech industry appears to be another story. A recent report from InformationWeek described an average 5.7% salary increase for technology roles, with up to 10.2% increase in some specialized positions.
Clearly there are big things going on in the tech sector for 2015, and as the New Year progresses, we’re excited to see what lies ahead. If you’re experiencing greater IT staffing needs, Kore1 is here to help. Contact us today to find out more.