| April 2007 |
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| Outsourcing is making contractors happy while frustrating those who seek full-time positions |
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| Denver is one of those cities where the raw employment statistics don't always seem to match up with the reality on the street. For every optimistic job report and employment prediction there's a tale from the trenches of a frustrated job seeker who senses stagnation in a market that's actually one of the nation's most technology-centric.
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First, some good news. Overall, Denver unemployment is low. As John Deets, branch manager for IT recruiter Sapphire Technologies puts it, "We are seeing a very strong employment market here in the Denver area, and the Colorado Springs market is picking up with mainframe technologies due to the increase in jobs in the telecom sector."
Employment in the area declined for three consecutive years in 2000-2003, led by large losses in telecom and tech. Employment went up in 2004 and has continued to rise slowly up to the present. Today, Colorado is the third-leading state in high-tech jobs as a percentage of all jobs. Only Massachusetts and Virginia rank higher (a finding of the Ewing Marion Kauffman Foundation 2007 State New Economy Index).
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| "Based upon the job postings I'm seeing (at all levels), healthcare is definitely the biggest thing outside of tech right now" |
| - Mark Hargrove, an independent consultant |
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According to the Manpower Employment Outlook Survey, which covers all industries, Denver employers expect to hire at a vigorous pace during the second quarter. According to Sunny Ackerman, Manpower spokesperson, from April to June, 42% of the companies interviewed plan to hire more employees, percentage that's up over the same period a year ago.
At the same time, IT staffing consultancy Robert Half Technology has released its second-quarter IT Hiring Index, which finds that 18% of Denver CIOs plan to make new hires this quarter, and the 2006 Dice Salary Survey reported that the average IT salary in Denver was up 3.33% over 2005.
So far, so good. But here's how one frustrated Denver-area engineer is feeling. "I've worked as a hardware engineer, software engineer, software developer, and Web developer in both contract and full-time positions. It's not a pretty picture out here. What I see companies doing is trying to save money by mainly hiring contractors and off-shoring lots of work. I've found that I have to add database, network, and security certifications to my portfolio for companies to even interview me. What it all comes down to is economics. I have had to jump through hoops to find good contracts. Oh, well. At least this keeps me on my toes. The days of job security are gone. There is no moss growing on my back."
Mark Hargrove, a former Denver-area CIO who is currently an independent consultant, echoed the sentiment. "After being laid-off from my previous company after a CEO change, I've been on the hunt for new job for nearly a year. My wife and I very much want to stay in the Denver area, so I have not been aggressively pursuing out-of-state opportunities. Unfortunately, at my level anyway, pretty much all of the CIO opportunities are from outside of Colorado."
Hargrove's most helpful hint is to look at the healthcare industry. "Based upon the job postings I'm seeing (at all levels), healthcare is definitely the biggest thing outside of tech right now. I recently had a long conversation with the IT Director for a Denver-area hospital to gain some understanding of what's different about the healthcare field, especially in hospitals. I now understand that in many ways it's the most challenging IT field available."
Hargrove believes that web-based applications are becoming so prominent that skills in this area are essential. He adds that Java/J2EE/JMS, database, and service-oriented architecture (SOA) are highly marketable right now, as are the comparable skills (.NET) in the Microsoft world. Sapphire's Deets identified business analysis, quality assurance, ERP solutions and network operations as other areas that are most in demand.
At Dice, the number of available job listings suggests caution. While jobs were on the rise through much of 2006, listings have faltered in the New Year and are down 12% for the first quarter.
For now, it may be wise to heed Hargrove's stern warning: "If you're a manager, don't relocate here unless you have an assured job."
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