The A.C.Coy Company 2018 Job Trends Report
U.S. Unemployment Rate Snapshot (August 2018)
- It's been 18 years since the unemployment rate fell as low as August 2018. An estimated 223,000 jobs were added to the economy.
- It has been more than 7 years (92 months) since jobs came in at a loss, which continues to break records.
- Payrolls went up, as the average hourly earnings for all employees went to $26.92. Earnings have increased by 2.7% over the last year.
Three Things To Consider
1. Lowest Rate Since 1969
While economists surveyed by Bloomberg predicted 190,000 jobs for August, the amount of jobs created far surpassed this projection. The 3.8% rate matches its lowest level in half a century. It's hard to think that in 2009, the United States was sitting at double digits (10%).
2. Wages On The Rise
By February 2018, wages were rising as fast as they had been since the recession. This has not changed, as it's likely employers will continue to offer attractive wages to attract top talent from a dwindling job pool.
3. For Every Action -- A Reaction
It's not always sunshine and roses, even when the unemployment rate is low, which draws fears of the job market overheating. The Federal Reserve is expected to raise rates again as fear of inflation and national tension with foreign markets could be leaving traders with sweaty palms.
The IT Job Market is Rising -- With Some Caveats
The IT job outlook in 2018 looks good. Most IT professionals are satisfied with their jobs, however, most believe they should be making more money, leading to many seeking new opportunities in 2018 -- up to 32 percent. But that number can vary by demographics, according to Spiceworks.com. Millennials are more likely to job hunt than older, experienced professionals, and European IT professionals are more likely to stray from their current positions than North Americans.
While money is usually a primary motivator, data indicates that skill advancement is also extremely important. Among tech experts, cybersecurity will continue to be the most highly marketable job skill. So, while making more money in the short term is important, the primary directive in the tech field of "always keep learning" rings truer than ever before.
Is AI Going to Leave Me High and Dry?
AI already has a profound effect on our day to day lives, but there won't be a market fluctuation anytime in the near future. This technology has created more opportunity than ever, right here in Pittsburgh, for aspiring software developers and others involved information technology to spread their wings with the rise of Uber's self-driving cars, Google, and other major tech hubs starting up and settling down in Allegheny County.
Outsourcing IT Jobs Overseas
American companies sometimes send IT jobs to India and China. The skills are similar and the wages are lower. A company only pays an entry-level IT worker $7,000 a year in China, and $8,400 in India. Companies in Silicon Valley outsource Tech jobs by offering H-1b visas to foreign-born workers.
Finance/Accounting Job Market -- Strong As Ever
Specialized talent is in high demand and unemployment rates are low in today's finance market. There is a short stock of experienced accounting and finance workers, such as financial analysts. According to the Bureau of Labor and Statistics, financial analyst employment is expected to grow 11 percent from 2016 to 2026 -- faster than the average for all occupations.
With unemployment rates such as below for certain industry occupations, it's a job seeker's market:
*overall U.S. unemployment rate is 3.8% as of August 2018
What’s more, in 2017, 62% of large companies said their accounting and finance teams are at least somewhat understaffed, citing challenges in finding skilled talent in the hiring process.