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This should be an interesting year for the market and employment. The unemployment rate will remain low and movement will be in the +/- .3 % range, staying in the mid to upper 4's all year. The tight labor market will keep inflation on a gradual rise and will keep interest rates where they are now or they may move up, I don't see them going down. The earnings reports that will be coming out later in the month will help give investors some direction although I don't think analyst are expecting many surprises. There has been some anticipation of a slowing in the market with it maintaining a high for a while now; it has not happened yet.
On the technology front for skilled workers it is much tighter than the unemployment numbers would suggest with the rate being in the low 2's at best; Houston's could be lower. With the surge in the oil and gas space over the last 2 years, the competition for technology people is as tight as ever. Salaries and other benefits are increasing for the work force at a steady pace. Outsourcing has kept the increases within reason but it will be interesting going forward to see what happens. I don't think that employees are as concerned about outsourcing as they may have been in the past but it is still a concern for them. More people are continuing to do contract work as the opportunities are increasing in the marketplace.
Unlike other times in the past when we have seen a strong market for some areas of IT, the IT market as a whole is very tight, carrying over to all areas of expertise. I would recommend that CIOs, VPs and IT Managers evaluate their current situation and take the necessary steps to keep the staff that they want; people will start looking around in the first quarter.
Please let me know your thoughts in these areas and what we can do this quarter to partner with you in these challenging areas.
I will be posting these comments and future comments on our website on a periodic basis if you are interested in the information.
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