IT Jobs to Shrink in 2009?

By July 23, 2008

A survey released last week by Goldman Sachs & Co. reports that IT jobs will drop in 2009. The survey reveals potentially dramatic cutbacks for both in-house and contract employees. The number of respondents reporting that they would be cutting in-house staffers has risen drastically from last October's 0%, jumping to 11% in the June 2008 survey. The number peaked in April at 15%, so it remains to be seen where this trend is going. These numbers are in line with Goldman Sachs’ 2007

The outlook is grim for contract workers: “48% of the respondents said that those staffers would be cut. And 30% of the responders said on-site third-party service provider staffers would also be cut for application-related development or maintenance work. Twelve percent of the managers said they would cut employees from offshore third-party service providers.”
The sample size is 100 respondents, “mainly CIOs at multinational Fortune 1,000 companies.”
The Australian IT site iTWire has noted a growing drop in Australian IT jobs in 2008, and that “there are ominous indications that the deteriorating IT jobs market may be a long term trend.”
Goldman Sachs also predicts that the overall U.S. unemployment rate will hit 6.4% in 2009. It is currently 5.5% after a large spike from 5.0% between April and May.

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