Recovery Sputters - 4 fewer states at full employment in August than July
Full employment is defined as 3.0% or lower
On an ongoing basis, Janco analyzes the unemployment rates reported by the BLS. This is then included in the firm's analysis of the projected number of jobs that will be added or deleted from the IT profession. The National unemployment data provides a measure of the health of the overall labor market. A more granular metric considers local conditions - i.e. state and local unemployment.
In July there were 22 states that were at full employment. That fell by 4 states to 18 - this reflects a stall in the overall recovery of the IT job market from Covid.
COVID impacted the overall unemployment rate with a loss of over 700,000 jobs at the start of the shutdowns. Then in April the unemployment rate skyrocketed to 14.7% and recovered to 3.7% in August of 2022.
IT Job Market Employment
The employment of IT professionals is driven by the national unemployment rates. In our research, we have found that the number of IT jobs created or lost is tied to the number of states that are at full employment (3.0% or less) versus those with high unemployment rates (5.0% or higher.
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