Tech employment shrinks for fifth straight month

The number of IT workers in the U.S. has declined steadily since December, a trend that wasn't helped by Hewlett Packard Co.'s announcement last week that it is cutting 6,000 employees..

The number of U.S. technology workers peaked last November at 4.058 million, according to the TechServe Alliance (formerly the National Association of Computer Consultants), which analyzes federal labor data on IT-related occupations. By the end of April, the number had declined to 3.87 million, the alliance said.

IT recruiters are mostly optimistic that the end of the decline is in sight, though most agree that the IT labor force will continue to shrink through the summer, typically a period of slower hiring because of vacations.

"I think we are definitely going to see a solid year of decline," said Mark Roberts, CEO of TechServe. And when companies start hiring, they will likely hire contract labor before permanent staff "because people are going to be cautious coming out of a painful recession." ( Computerworld layoff tracker)

Companies "are still cutting and I think there will be some more cuts," said Steve Watson, international chairman and managing director of recruiting firm Stanton Chase International in Dallas. But Watson also noted that he is optimistic that hiring will resume by the end of 2009 due to a pent-up demand for corporate and government IT projects.

California, Florida and the city of Detroit are among the hardest hit regions for IT employment, though demand continues to be strong in isolated areas, such as Nashville, which houses a number of health care firms that are hiring, said Sid Mitchener, a partner in the Raleigh, N.C. offices of recruiting firm Vaco LLC. However, he did note that the salaries of workers taking on new IT jobs are generally 10% to 20% below what the same positions received last year.

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