The demand for IT professionals has plummeted to its lowest level
since the last recession as businesses rein back their IT budgets
and put major e-commerce projects on hold.
The number of IT jobs advertised in the press in the second quarter
of the year has fallen below 15,000 for the first time since the
early 1990s, the latest Computer Weekly/SSP jobs survey reveals.
The downturn is so severe that some commentators have suggested
that the slump could prove longer and deeper than the 1991-1993
recession, which led to more than 30,000 job losses.
Internet specialists, including administrators, Web designers,
authors and editors have born the brunt of the slowdown, with the
number of jobs advertised down 75% compared to the same time last
year.
Demand for Java has fallen by 60%, with finance companies cutting
back their intake by a half, software suppliers by a third and
hardware suppliers by two thirds. Demand for XML and Wap
specialists is also beginning to peter out.
Demand for systems developers has dropped dramatically, with the
number of jobs advertised falling by between a third and a half
compared to the same time last year.
Experts predict that the job market is unlikely to recover until
the telecoms suppliers kick-start a new generation of e-commerce
projects by rolling out broadband access to businesses and homes.
"The big all-singing all-dancing graphical e-commerce projects have
had the chop because no one has the bandwidth to make use of them,"
said Philip Virgo, strategic adviser to the Institute for the
Management of Information Systems.
"This recession is already worse than 1991 and has yet to bottom
out. It will not recover until the roll-out of broadband has
re-started."
IT departments are increasingly focusing their efforts on projects
that offer a quick payback, such as adding low-bandwidth Internet
access to existing enterprise systems. This has led to a growing
demand for communication and network specialists, which now account
for 11% of all jobs advertised, compared to 5% at the same time
last year.
What skills crisis?