economics

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Employment Trends Within The It Sector Economics Essay

A well documented trend within the employment industry concentrates on graduates. “According to the survey, the most common reason invoked to (re)enter higher education was to train for a specific career” (Elodie Marandet & Emma Wainwright, 2010, pp 787-805). There are currently over 5000 permanent jobs and over 4500 contract jobs within the I.T. sector, 24 of which are specifically aimed at graduates, according to IT Jobs Watch [2010].

Studying a sample of 10 jobs from the 24 previously mentioned using data from I.T. Jobs Watch an obvious trend appears:

Description

Rank

3 Months to

15-Nov-10

Rank Change

on Same Period

Last Year

Average Salary

3 Months to

15-Nov-10

Average Salary

% Change

on Same Period

Last Year

Matching Job Ads

(% of Permanent

IT Job Ads Sampled)

Last 3 Months

Graduate Software Developer

623

Down-55

£23,000

-8.00%

201 (0.18 %)

Graduate Software Engineer

679

Down-111

£25,000

-9.09%

144 (0.13 %)

Graduate Web Developer

767

Down-137

£21,500

-

56 (0.05 %)

Graduate Support Analyst

771

Down-126

£24,000

17.07%

52 (0.05 %)

Graduate Programmer

776

Down-131

£22,000

-4.34%

47 (0.04 %)

Graduate Network Engineer

808

Down-141

£20,000

-4.76%

15 (0.01 %)

Graduate iPhone Developer

812

Down-145

£27,000

8.00%

11 (0.01 %)

Graduate Systems Engineer

813

Down-157

£18,500

-26.00%

10 (0.01 %)

Graduate IT Support Analyst

815

Down-159

£19,000

-7.31%

8 (0.01 %)

Graduate Software Tester

819

Down-155

£20,000

-12.08%

4 (0.00 %)

The study shows that, in today’s market, the overall ranking is down, on average by 132 places and overall salaries down by an average of 4.65%, compared to 12 months ago. Further investigation into the sample study shows that the majority of jobs were paying the same if not more money at the same period in 2008 than in 2009. This indicates that employers are able to offer a lesser salary as there are more applicants competing for the roles.

This is further corroborated by the article “18 applicants for each job vacancy” The Express and Star (2010) which suggests that two-thirds of unemployed people have applied for over 11 jobs while 1 in 4 have not been offered an interview.

There is an underlying pattern when studying the graphical format of the jobs over a given timeline and comparing that to the salary for the same. The majority show that after there is a decrease in jobs for that particular role, the salary increases encouraging more people into that role and also that as the salary decreases so do the number of jobs. Focusing on the 2 highlighted roles, this trend and be seen quite clearly.

Graduate Systems Engineer Demand Trend

Permanent jobs for Graduate IT Systems Engineer over 3 month periods from

May 2004 to Sept 2010. (Source: ITjobswatch.co.uk.)

Graduate Systems Engineer Salary Trend

Salaries for permanent Graduate IT Systems Engineer roles over 3 month periods from

May 2004 to Sept 2010. (Source: ITjobswatch.co.uk.)

The above figures show that between May and September 2009, the demand for jobs within the Graduate System Engineer role plummeted dramatically. To counterbalance this, salaries were raised to their peak in January 2010 which saw a rise in jobs, since then salaries have started to fall corresponding to a slump in jobs.

Comparing this data to the role of Graduate IT Support Analyst shows a similar sort of trend:

Graduate IT Support Analyst Demand Trend

Permanent jobs for Graduate IT Support Analyst over 3 month periods from

May 2004 to Sept 2010. (Source: ITjobswatch.co.uk.)

Graduate IT Support Analyst Salary Trend

Salaries for permanent Graduate IT Support Analyst roles over 3 month periods from

May 2004 to Sept 2010. (Source: ITjobswatch.co.uk.)

The trend can be seen quite distinctly from September 2008 through to May 2010 when the salary was at an all time high, the jobs increased to the peak demand, however, as the salary decreased so did the jobs.

Both these studies link in very strongly with an article published on the BBC News website August 2008 which talks about “the lowest graduate unemployment rate for 5 years” highlighting that the IT industry was amongst the highest rates of unemployment. Comparing this to the recent article “Graduate unemployment ‘at a 17-year high’” BBC News (2010) states that 8.9% of graduates from the class of 2009 were out of work and gives percentage figures for graduate unemployment by subject, the highest being the IT sector at a staggering 16.3% shows the massive contrast represented by the previous graphs.

Source: BBC.co.uk/news

I.T. stands above the rest in graduate unemployment (1.7% higher than Media Studies).

A study from the Higher Education Statistics Agency shows the unemployment percentages broken down into regions, London being the worst area for unemployed graduates, followed by Yorkshire and Humber.

% employed be region of HEI 2008/09

Region

Employed

Unemployed

England

72.5%

7.8%

North East

71.9%

7.3%

North West

75.1%

8.0%

Yorkshire and The Humber

69.4%

8.1%

East Midlands

72.9%

7.6%

West Midlands

74.3%

7.6%

East of England

72.4%

6.9%

London

71.5%

9.4%

South East

72.9%

6.9%

South West

71.8%

6.6%

Wales

73.1%

6.9%

Scotland

70.4%

6.1%

Northern Ireland

76.0%

7.5%

Source: HESA.ac.uk

Looking at the sample 10 jobs, 4 of those pay substantially less for the West Yorkshire region, varying from £3000-£6500 difference from the rest of the country. This suggests that there are more people for these types of jobs and that a company would then prefer a potential employee who has experience rather than one who is qualified with no experience, for the same price, all adding to the unemployment rate for that region. Also this would suggest that employers find it easy to recruit for these positions as there are so many applicants. Jobs such as the iPhone Developer where the salary has increased 8% since last year indicates that there is a larger demand as the device has become more popular and therefore employers are prepared to offer more money:

Demand for iPhone apps has increased.

Skills to design these Apps are less common.

As it is recent technology not as many people have experience in that role.

Employers find it more difficult to recruit for.


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