Washington Faces New Challenges

January 2008

Budget approvals, elections and finance industry turmoil could slow hiring.

At a time of year when budget approvals are working their way through bureaucracies, hiring of all types - including in IT - tends to slow down. That's certainly the case in Washington, D.C., which is more sensitive to seasonality than other metro areas because of the government budget process. In a locale where so many people work for the government, things can feel very cyclical.

As 2008 begins, Washington is sending mixed signals to job hunters. The quarterly Manpower Employment Outlook Survey, which covers all industries, found that from January to March, a healthy 32 percent of companies interviewed plan to hire more employees, according to Liz Crawford, a Manpower spokesperson. At the same time, recruiter Robert Half Technology's IT Hiring Index indicates a strong 18 percent of Washington-area CIOs plan to hire new staff in the first quarter.

That's great. But on Dice the number of available IT job listings for Washington dropped 15 percent in the fourth quarter of 2007, reflecting that old year/new year seasonality. There are currently some 5,700 jobs listed.

In a locale where so many people work for the government, things can feel very cyclical.

D.C.-area software developer and project manager James Howard agrees the IT job market is cyclical. "To avoid that, I suggest looking into IT in health care, which seems relatively steady," he says. His take is that SQL Server developers and .NET developers are usually in demand. The recently published 2008 Robert Half Technology Salary Guide also sees a strong need for Web developers, and adds data warehousing analysts and network security administrators to the list of people with hot prospects.

Erick Zohn, branch manager for IT recruiter Sapphire Technologies, describes the current Washington market as "somewhere between so-so and strong." He notes that, "Certain sectors, such as the mortgage industry and government agencies, are slow as they wait for budgets to get approved. The telecom business, however, remains strong." What skills does he see needed most? "We are seeing the traditional positions such as business analysts, Web developers, technical writers, and production support specialists all in demand."

According to the new Dice salary survey, D.C. IT jobs pay an average of $81,750, up 2.3 percent over the past year and $7,000 ahead of the national average. Those are strong numbers, but of course you have to find the job before you can get paid. Zohn recommends signing up for the frequent newsletters from Potomac Tech Wire and investigating the activities at Washtech, the Washington Alliance of Tech Workers. They have the inside scoop on what's going on in D.C.

Despite the slow season, Zohn remains "cautiously optimistic" about Washington's market. He says IT spending is on an upswing, and most big operations will increase hiring, especially as Q1 closes out. "Many in the mortgage and finance industries will still be recovering from losses in Q4 and will take time to get back up to traditional employment levels," he says. "But others in the telecom industry are ready to do significant hiring right now."

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