IT Job Market Wouldn't Like Another COVID-19 Shutdown

A second shutdown would cripple an IT job market that’s already been severely impacted by the COVID-19 pandemic.

That’s according to Janco Associates. The shutdown during the first quarter cost over 105,000 IT professionals their jobs. And the IT job market recovery has been slow.

Janco expects 65,100 IT pros will lose their jobs by the end of the fourth quarter.

“The primary cause of many job losses for IT professionals was centered on the 7.5 million SMBs impacted by the shutdown,” said Janco CEO Victor Janulaitis. “Historical data show that between 60% and 75% of SMBs close their doors forever after [an] event that causes an extended closure like a disaster. In addition, many chain stores have already announced they will be closing their doors or reducing operations.”

Retail chains like Pier One, Men’s Warehouse/Jos. A Banks, and Bed, Bath & Beyond no longer need as many IT professionals, he said.

Specific IT Job Cuts

“There also has been shrinkage in the number of IT professionals classified as working for data processing, hosting and related services,” Janulaitis said. “Those positions now are only 9% of the total IT job market where they were 10% pre-COVID.”

There is a bright side. For the third month since the start of pandemic, there was a net gain in IT jobs last month.

“This despite the fact the U.S. Bureau of Labor Statistics revised the number of jobs downward for IT professionals by 2,800 for August and September,” he said. “There was a net loss of jobs in the last 12 months coming from computer systems design/related services and telecommunications — 34,9200 and 34,500, respectively.”

Last month, Janco reported IT management has shifted during the COVID-19 pandemic with the move toward virtual operations. Chief digital officer is among the emerging new positions. The CIO has been the technology leader at many businesses. Now there are more than a half-dozen positions driving and managing technology within corporations.