For years, the tech sector had been regarded as a bright spot in the state's dismal economy, but many IT jobs have been lost during the last 12 months.
One thing about Detroit: It had a head start on the economic downturn.
Just ask Sheila Raybin, who's been a mainframe specialist since 1985. She says the area started experiencing economic problems as early as 2001: "Detroit took a bit hit after 9/11," she explains. "The financial crisis was not the cause."
Suffice to say, it's not getting any better. For years, the tech sector had been regarded as a bright spot in the state's dismal economy, but during the last 12 months it's lost 6,100 technical and scientific jobs - engineers, computer programmers and researchers, according to the Michigan Department of Labor and Growth. About 5,200 jobs were shed in the latter part of 2008. Employment in scientific research and development has dropped by 17 percent, or 4,300 jobs, in the last two years.
Because many automakers, their suppliers, and banking firms rely on legacy systems, mainframe specialists were in a good place. But then offshore outsourcing began gathering momentum and people like Raybin were let go – but not before being required to train the people who eventually took her job.
"If you're an American IT worker in Detroit, forget it," says Raybin, whose husband recently was laid off from EDS. "There are a lot of people moving out of the area. And for those who can't sell their homes, there are a lot of split families where the husband takes a job in another state. It's bad."
Even while acknowledging the slowdown is impacting the IT job market here, recruiters try to paint an optimistic picture. Christine Lucy, senior regional vice president for Robert Half Technology's Southfield office, cites biotech, bioservices, medical supplies and instruments, alternative fuel, environmental and non-automotive manufacturing as bright spots on the local scene. But she allows companies holding off on new system implementations and software upgrades.
"Some businesses are still hiring," she says."According to our company's IT Hiring Index and Skills Report, a net two percent of CIOs in the Detroit area expect to hire information technology professionals in the first quarter of 2009. Nine percent plan to add staff during the quarter, and 7 percent anticipate reductions in personnel."
The hottest IT skill sets in the Detroit, according to RHT, include .NET development, SQL Server, help desk, system administration, network administration, database management, and security. The company's CIO survey found the job areas anticipating the most growth in Detroit for the first quarter helpdesk and technical support, (18 percent), followed by applications development (14 percent).The area's CIOs in anticipate the most need for IT skills in Windows administration (67 percent), network administration (66 percent) and database management (61 percent).
Lucy says Detroit's tech market began to change about six months ago, when there was a noticeable decline in hiring both full-time and interim staff. Before increasing full-time headcount again, she says companies want to see what the first and second quarters may bring. "They are waiting to see how the economy does, what our new president implements and how TARP funds impact the economy. It's very much a wait and see attitude when it comes to spending money."
Recent months have seen a steady decline in Detroit job postings on Dice. Between January 2008 and January 2009, the number of postings fell from 1,117 to a scant 512. However, it's worth noting the average IT salary in Detroit showed an increase of 9 percent during 2008, according to Dice's annual salary survey. The average was $73,327 in 2008 compared to $67, 271 in 2007.
IT worker Kris Scobie says the Detroit IT job market is the weakest she has ever seen it. Currently working for a contract house on a major automotive supplier account, she sees a number job openings tied to finance and SAP technologies, but not many for local or state government positions. "I believe most of them have implemented a hiring freeze due to the gloomy Michigan economy," she says
"Overall, I do remain optimistic," she adds. "My current employer seems to have a liberal 'bench' policy. If I cannot find something within my company, I will find something outside it. I've always been able to find work. It might not be the most challenging or rewarding, but I am able to find jobs."
Detroit Jobs on Dice
Have Dropped Steadily Since Summer
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