Tech Employment Drops Sharply In 2004
Cryofan writes "According to Information Week, the lastest Bureau of Labor Statistics report shows that
the number of Americans calling themselves IT professionals has decreased by nearly 160,000 in the last 3 years, and the number of programmers, analysts, and support specialists has fallen 15% since the first six months of 2004.
According to IT World, the number of employed Software Engineers fell by 15% from April to July of 2004 (from 856,000 to 725,000)."
...everyone is losing their jobs in nice, whole numbers. Keeps the statistics nice and pretty that way.
No, the practice of trying to make every quarterly financial report add up to the right number by either firing half your work force or doulbing their numbers is what ruins lives. Sometimes it's so blatant the two above acts are only a single quarter apart.
by education levels. Are the programmers who were laid off college educated or did they take, "ITT teaches you how to write a web page and use visual baisc" type programmers? Is there demand for a masters/phd? The numbers probably mean very little of themselves without a breakdown of who is employed/unemployed. Maybe demand for college graduates has increased, but demand for Devry/ITT flunkies has plummetted. Hard to tell.....
"and the number of programmers, analysts, and support specialists has fallen 15% since the first six months of 2004. According to IT World, the number of employed Software Engineers fell by 15% from April to July of 2004 (from 856,000 to 725,000)."
These numbers are regarding the first 6 months of 2004, and April-July 2004 respectively. Did pets.com just experience another layoff? The boom has been over for some time -- I'd surmise these lost jobs had zero to do with the boom being over. I think the self-reassuring comments about "Well these are all Devry grads" or "These were just holdovers from 2000" can be just about completely put to rest, sorry folks.
Yes, FOSS has been around for years, but suddenly it is the cause of job losses - not institutional corruption that has gone unchecked, manipulation of energy market prices which can easily cause the economy to tank (1972 US, or more recently the California economy trashed so that Enron could make some fast money), not downsizing and outsourcing in the financial section after 9/11 and the sector wide corruption at the top of those businesses from the S&L "crisis" to the only partially told truth about illegal trading now.
Was there a big loss in jobs when Sun came into existence and decided to make cheap (compared to the rest of the players in that market at the time) workstations and small servers with off the shelf parts instead of proprietary, custom stuff?
Did the release of perl 5 cause the numbers of programmers to drop signficantly?
New versions of BLAST cause a sudden drop in programmers doing genetic work?
LLNL releasing some mathematics libraries tank the engineering software market?
Of course Democratic presidents create more jobs - more government jobs. Thus the size of gov't increases, and so does the tax burden on those of us who don't have gov't jobs. Number 1 employer in the US - gov't. Number 1 employer in most socialist/communist countries - gov't. Can you see the correlation? Just don't try to get a gov't job unless you know someone, that's the only way in now, unless your female, minority, etc.. (Just my white male rant!).
FYI: Government spending under Bush >> Government spending under Clinton(on both defense and non-defense)
To answer the grandparent, correlation does not necessarily imply causation. Economics is a still largely a mystery, we can measure a lot of things, and explain some others, but it's a lot more complicated than most people(such as yourself) make it out to be. I see a lot of people(and I myself have indulged in this on occaision) who really over-simplify economic theory(free trade is always good! All regulation is evil! We need to protect American jobs! etc)
That correlation should not be the reason you are voting for John Kerry. I am supporting Kerry because he will show fiscal responsibility(unlike our current president), put a lot of money into research for alternative fuel sources(though he hasn't mentioned making trains a replacement for domestic flights, but hey, you can't win 'em all), his willingness to volunteer to go to Vietnam(he inspired me to look into joining the Army), and his courage to protest the war after it, his plans to reduce health care costs, and the fact that he is respected in the rest of the world. I have traveled abroad and met a lot of people who like America, but loathe Bush. I do not want that man representing our country, and I think we have found a great replacement for him in John Kerry.
Now that I have stated my beliefs, I will don my flame retardant suit.
I'll admit he got very lucky. The tech jobs graph looks like it was rigged for Clinton and against Bush. But the thing is
1. Even ignoring tech jobs, the job sitation was pretty good under Clinton, and still not break even under Bush
2. Eventually you have to come to the conclusion that either Democrats are all very lucky, or that they're doing something better.
As for the Internet, this seems to indicate that the bidding for the ARPANET contract started in 1968, under the LBJ adminstration.
Here
A Colossus With Weak Knees
By Paul Craig Roberts
If George Bush and John Kerry were aware of the problems that await the next president, they would be vying to throw the election, not to win it.
Job loss at home and failure abroad have already written the script which will sweep away the next administration.
Recession could return by the inauguration before the economy ever regains the jobs lost to the 2001 recession. Second quarter 2004 economic growth came in 20% less than expected. The consumer is showing weakness, and crude oil prices have reached record highs. Personal savings remain low by historical standards.
On August 3 the Bureau of Economic Analysis reported that seasonally adjusted real per capita incomes declined in June to levels below those reached in April. Total personal real spending declined 0.9% in June to the level of last February.
As the Bureau of Labor Statistics made clear in its July 30 report, the US economy is suffering not only from weak job growth but also from a loss of better paying jobs.
Only 65% of the 5.3 million workers who were laid off from long term jobs during the first three years of President Bush's administration were reemployed by January 2004. That means only about 3.5 million of the 5.3 million laid off workers were able to find new jobs during two years of economic recovery.
Of those who found new jobs, 57%--about 2 million workers--took jobs paying less than their previous positions. About 1.2 million of the workers who found new jobs experienced pay cuts of 20% or more.
It is really disturbing that this job loss may have occurred in the absence of a recession. The conventional definition of recession is two consecutive quarters of negative economic growth. However, on July 30 the Bureau of Economic Analysis released the revised GDP data for 2001, and the recession, as conventionally measured, has disappeared. The revised data does not show two consecutive negative quarters, and for 2001 the economy grew 0.8%. Did we experience not only a job loss recovery, but also a job loss nonrecession?
There was no recession in the second quarter of this year, but BLS data show 131,000 fewer American computer software engineers employed in the second quarter than in the first quarter of 2004--a decline of 15% in three months. Employment of computer scientists and systems analysts declined by 51,000 in the second quarter. Employment of computer programmers fell 16,000.
Despite the horrendous job loss, the unemployment rates for software engineers, computer scientists and programmers fell, which suggests that technical professionals are discouraged and have ceased to search for jobs in their occupations.
The decline in high-tech professions in the US is also reflected in the collapse in computer engineering enrollments in America's premier engineering schools. Over the past several years, M.I.T., Georgia Tech, and UC Berkeley have experienced computer engineering enrollment declines of 43%.
More unprecedented bad news comes from the Internal Revenue Service. For the first time ever, the real incomes of Americans shrank for two consecutive years. In 2002 Americans repor
Seastead this.
Yeah, some people got greedy. But so what? For all the people on slashdot happily talking about how this "correction" is just a part of the glories of Capitalism: laborers have just as much of a right to be greedy as managers.
Look at the realities of many IT jobs, perhaps nearly all of them:
And the list goes on. I was up till 1:00 last night (yeah, Saturday night but my wife was working next to me), working on learning Smalltalk. I won't be compensated for it, its part of the job. Is there anything wrong with thinking, gee, even though its part of the job, I should be paid for the extra time I spend learning?
IT workers may have been greedy, but not as greedy as management. Why should someone with an undergraduate Human Resources degree, limited hours, very little need to learn new skills, etc. earn the same amount of money as a programmer who has to do the above list?
Managers became afraid that finally, a group of educated and independant individuals were entering the work force and demanding to be paid what they worth. The nerds had entered the palace! And now, managers are delighted because the nerds are on the run... things are back to the way they should be, with accountants, mid-level managers, human resources staff, and others earning more than those geek-ass goobers.
/* Dang, I can't type that well. */
I'm a former Northwest Airlines applications programmer/analyst with a BSCS and 15 years of pretty solid experience who has been looking for a new permanent place to work for over 2.5 years now, and my local area (the Minneapolis/St. Paul metro) has had a number of large companies lay off a large number of people over the past few years including my former employer (NWA), Unisys (which has a heavy airline/mainframe presence in the Twin Cities), Lawson, IBM, Qwest, Verizon, and a number of others.
:-)
In the case of NWA, many IT people were laid off based on the organization or project they were affiliated with, and whole trees of people were lopped off from the manager on down. I know several folks who I considered top-quality techie types who were let go in October 2001 because they had moved to a project that was more technically interesting or high-profile a few years ago, but which was considered a non-critical project by management in the post-9/11 airline environment).
In other cases (such as in my case), cuts were made based purely on seniority, and my 13 years put me on the bottom of the ladder compared to the remaining folks I was working with in Flight Operations (I survived the major IT cuts in late 2001 only to find myself nickel-and-dimed out a few months later when we all thought it was over).
Given the experience level of my peers I was a logical choice, at least by that measure, but I'll frankly put my general level of technical acumen against anyone here. Or there, for that matter.
Unfortunately, that wasn't the measurement used. Ability rarely factors into such choices, as two layoffs in the past 15 years have taught me, particularly when the layoff parameters are being determined mainly by bean counters rather than technical management.
With such a glut in unemployed techie folks in the local area, many of them quite senior, it's hard for someone with only 10-15 years of experience to get any sort of contract work because there are a fair number of 20-30 year people also laid off who are now competing for a much smaller number of positions. And contract work is almost all there is. A few firms seem to be hiring real permanent employees, but competition is so fierce that one has to be an almost perfect tech-skill+line-of-business match in order to get a first-level interview.
I know several folks who have roughly my experience level who are still out of work after more than a year, and it sure isn't due to a lack of technical ability or a lack of effort. From what I can tell, it's mainly due to a large number of people seeking a small number of positions, and to an increasing tendency for companies to require more and more specialized business and technical skillsets even for general IT positions.
The folks who have "left IT" according to common statistical measures are a mix of all types.
Some fit the stereotype of being "less skilled" or interested only in the financial aspects of an IT career, and I'm in agreement with those who say "good riddance" to such folks, but there are probably at least as many others who are hard-core bit twiddlers or talented designers or whatnot who just happened to be in the wrong place at the wrong time, and who are finding it difficult to obtain employment in IT at a time when companies are hiring specialized short-term contractors in lieu of more generalized long-term employees.
When an IT position isn't available, and when the six months or so of unemployment runs out, a former IT person has to do *something* in order to make ends meet. In my case, it will probably end up driving a truck or doing some sort of generic office work so I can continue to pay the bills.
That doesn't make me any less interested in IT, and I'll still be looking when I'm not working at a lesser position, but for statistical purposes I'll have dropped off the radar and will no longer count as an unemployed IT position. It's a very misleading statistic...
If this comes across as a bi
Mainframe/UNIX Bit Twiddler and long time Windows/Linux Hobbyist.
The Theorem Theorem: If If, Then Then.
Face it, Your Boss is a Rat
Who REALLY moved your cheese and why!
By: John Shepler
If you think something smells rotten in corporate America, you're right. It's a foul aroma wafting in from the executive suites, where the rats are jumping for joy at the success of their latest manifesto, "Who Moved My Cheese?", subtitled...get this, "An Amazing Way to Deal with Change in Your Work and In Your Life."
"We moved it," they squeal with delight, "and when we want to, we'll move it again." Why? Very simple. Management has discovered that moving or removing YOUR cheese can be quite advantageous to them. But they've known that for a more than a decade. What they've just begun to realize is that it's possible to sell employees on the idea that this is perfectly OK. I'll elaborate, but first let me tell you how it all began.
It Takes Only a Minute
Management has a Holy Grail and it is known as "the silver bullet," also called the quick fix. It's epitomized in a small, thin book called "The One Minute Manager" by Kenneth Blanchard, Ph.D. (piled higher and deeper) and Spencer Johnson, M.D. (mostly deeper.) The theme of "The One Minute Manager" is that business people, especially managers, spend way too much time mulling over problems, internalizing them, and debating on what to do next. Much better, proposed Blanchard and Johnson, to jump in, collect all the facts that are at your fingertips or can be coaxed out of your subordinates, and make a snap decision in one minute or less. Actually, the primary decision is which employees can best be made to take ownership of the problem, strategically moving the burning acid of responsibility from your stomach to theirs. If things improve, you allocate no more than one more minute to tell them how great they are doing. If the situation deteriorates, you allocate that same minute to making darn sure that they feel terrible about it and will work even harder to keep the problem from returning to you.
A Revolution in Business Thinking
Think this is funny? It's revolutionary. The enabling power of one minute management has caused the entire Fortune 500 to refocus from the concept of stewardship, with a responsibility to the community that spans generations, to a slavish devotion to the needs of the institutional investor, primarily an increased stream of earnings every fiscal quarter. White-collar layoffs, almost unheard of prior to the 1980s, are now a standard tool of expense management. With only a minute needed for problem solving, the span of control for managers has increased as much as ten fold and the number of people assigned to non-producing supervisory functions proportionally reduced. Productivity, as measured by corporate earnings, soared to create the raging bull market of the 1990s. Johnson and Blanchard are lauded in corporate circles. But the emphasis on rapid decision making has led to shortened attention spans. It's already time for something new...
The Big Cheese
The toll of one minute everything is burning out once naive and eager employees, anxious for their leg up the corporate ladder. The abuses of ever increasing demands have created calluses of cynicism that are best portrayed in the characters of Scott Adams' Dilbert. Now everyone sees themselves as an oppressed Dilbert or Wally and adopts a passive/aggressive approach to corporate survival.
Re-enter Johnson, sans Blanchard, with a new silver bullet, this one cleverly disguised as an irresistible morsel of cheese. And who can resist the power of cheese? It's a story that is designed once again to get the onus of action into the mind of the common employee. Without giving too much away, here's how it goes.
It seems that there are two mice and two small people living in a maze. They dine on a seemingly endless supply of cheese provided by an unseen benevolent caretaker. All are complacent and happy with this scenario, until one day the cheese is gone. The mice shrug and take off down the corridors of the maze to find more
There is a neo-con strategy called "Starve the Beast," whose goal is nothing less than to push the government to near bankruptcy so that it is incapable of governing. The rationale is that this will force the government into laissez-faire policies. Bush's slash and spend policies are in line with this policy, rather than the traditional policies of conservatives, which is to match tax cuts with spending cuts.
But even the traditional policy can lead to disaster. Infrastructure requires constant maintenance. Think of a loose shingle on your roof. Replacing it will cost 50 dollars. If you leave it, the others around will will also come loose. Now you have to spend 500 dollars to fix it. Let this go, and you suffer water damage. $5000 to replace that section of the roof. Ignore this, and the water may get into the house, into the wiring, and cause a fire. Then you lose the whole house. Costs delayed are costs increased. Ignore the state of your highways, power grid, environment, etc, and the costs that you incur when you can no longer ignore it will be crippling.
The danger of 'Starve the Beast' should be obvious. The economy runs on the rails of infrastructure provided by the government; highways, police, courts, regulations which protect business as well as prevent unfair practices, etc. Without the ability to do this, capitalism itself will collapse. Corporations are, first and foremost, legal entities sanctioned by government authority. Their very existence is made possibly by the efficacy of government. And we haven't even touched on the military yet. A bankrupt federal government will mark the end of America as a Superpower. All of this is why large numbers of old school conservatives are furious with Bush.
I still haven't touched on the liberal arguments against what Bush is doing. Those who have little money left over after necessities pay a much larger proportion of their income in taxes, through sales tax. There is no tax on securities and stocks, and the financial slight of hand that uses tax shelters is available only to those with a large surplus of capital. When Henry Ford paid his workers an unheard of amount of money for common labourers, he created a large working middle class, with disposable income which allowed them to buy the products of their own labour. This rendered obsolete what was probably the only legitimate claim of Karl Marx: that when workers could no longer buy the products of their own labour, the markets would collapse. The result of Ford's policy eventually spread to most of the American working class, creating the most powerful economic dynamo the world has ever seen. The decline of the middle and working classes make the pie smaller for everyone. The rich may get richer for while, but they will be fewer in number. It is only a matter of time before they feel the pinch. The wolf that grows fat on the poor will soon go after bigger prey.
Both the long term and the short term consequences of Bush's policies are disastrous. It doesn't matter what your political affiliation is. It may be disastrous for the Democrats if they win, because they will inherit such a mess that it will be hard to wow the crowd. America cannot afford four more years of Bush. And even the conservatives are beginning to realize this.