In a recent Staffing Stream post, Krista Palmisano, lead research analyst, labor market analytics, for Allegis Group Services, shares an interesting infographic that illustrates the challenging sourcing conditions for IT labor. Ms Palmisano explains these challenges: “The IT labor market is in a state of evolution. Unemployment rates for IT labor, before, during and after the recession, have typically been low [even though overall unemployment rate is 7%]. In some markets for some critical IT skills, unemployment is as low as one percent or less! This, combined with other factors, drives up bill rates and makes for very challenging sourcing conditions.” Based on Allegis Group Services’ research, here are some key findings:
- IT Unemployment is at 3% (dips as low as 1% in some occupations, such as Application Developers)
- Any time unemployment drops below 5%, sourcing can be challenging
- unemployment rate is dropping + unemployment is low, turnover is climbing + professionals increasingly quitting their jobs = it is more challenging to find and retain contingent talent at a low rate
- How it relates to the bottom line – overall IT rates up 6% from 2012 – 2103, developer bill rates up 12% from 2012 – 2013, mobile developer bill rates up 14% from 2012 – 2013
For more information on contract labor, click here to download the report When Worlds Collide: Procurement and HR Managing Contract Talent, provided by HCI, partnering with Allegis and the Institute for Supply Management.