No Hiring Slowdown

By John Pallatto  |  Posted 2004-08-16 Print this article Print

Dice has seen no sign yet that there will be a significant softening of demand for high-tech jobs in the second half of 2004, Melland said., another online job recruiter with a focus on the IT industry, echoes this view. The employment slowdown reported in July isnt necessarily an indication that the nations economy is going to slow down in the second half, said Marcel Legrand, senior vice president at

Monster.coms customers "are pretty bullish about the rest of this year," Legrand said. The number of postings the site is getting isnt slowing down, he said, suggesting that the slowdown may just be a seasonal blip in hiring.
"Everybody is on holiday. July and August are just not a good time to be thinking about business and employment trends," Legrand suggested.

People have to remember that the 3 percent unemployment rate reported in the late 90s was an aberration, Legrand said. For the past three years, unemployment nationally has ranged between 6.5 percent and 5.5 percent, he said, adding that an unemployment rate of 5 percent is historically a great number. People shouldnt expect that unemployment is going to fall to the rates seen before 2000, he said.

Monster disagreed with Dice in terms of what is happening in the financial services industry. IT administrative jobs in the financial services sector have decreased in recent months, Legrand said. In particular, the mortgage banking industry has shed about 1,600 IT jobs in the past six months, as even a slight increase in interest rates has reduced the massive wave of mortgage refinancing that prevailed over the past two years.

But Monster has also found that IT professionals are making a recovery from the losses of the bubble years. For example, people who lost jobs in the telecommunications industry recession have found they can bring their skills to the health care industry.

In additional, technology management positions, such as WAN (wide area network) management or software engineering management, have grown faster than any other position, Legrand said.

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John Pallatto John Pallatto is's Managing Editor News/West Coast. He directs eWEEK's news coverage in Silicon Valley and throughout the West Coast region. He has more than 35 years of experience as a professional journalist, which began as a report with the Hartford Courant daily newspaper in Connecticut. He was also a member of the founding staff of PC Week in March 1984. Pallatto was PC Week's West Coast bureau chief, a senior editor at Ziff Davis' Internet Computing magazine and the West Coast bureau chief at Internet World magazine.

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