| July 2006 |
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| Dice job postings in Boston are up 7% |
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Boston’s status as the unofficial capital of New England carries a lot of weight as far as regional trends and local economies are concerned-- usually as Beantown goes, so goes the rest of the region.
And for now that is good news for those entering a burgeoning IT job market.
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“It ebbs and flows but it is hard to find certain talent,” said Tod Demeter, senior vice president and chief information officer of Wright Express, a Maine-based technology firm that often lures top IT talent not only locally but also from nearby Boston. “And prospective employees use this fact as bargaining chips against each company.”
For the second consecutive quarter the Massachusetts economy expanded, albeit slowly, with software and information technology sectors citing higher revenues.
As the U.S. economy expanded from mid-April to June, according to the Federal Reserve, the Boston metro area outpaced that growth with defense firms making even greater inroads into the Bay State. The expansion also drove up the IT job market.
“The region’s tech job market has been on growth mode for some time,” said Robert Dickey, senior vice president of Sapphire Technologies, an IT staffing firm headquartered in Boston.
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| "The Boston IT job market is primed to continue this growth with all that is happening in numerous vertical sectors" |
| - Scott Melland, Dice CEO |
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In fact, technology job listings on Dice for the Boston area increased an impressive 23% during a recent three-month period, from 2,379 in December to 2,922 in March. Dice listings then followed those numbers with a 3% leap during the following three months.
That growth, Dickey says, has now changed the IT job market from employer driven to applicant driven.
"In the old job market, there wasn't the same demand there is now. Employees stayed because there weren’t many other places to go," said Dickey. "Now, people have competing offers all the time."
And competing offers always signal good times for job seekers in general, especially when it comes to compensation.
Once again the average tech salary in the Boston area ranked second among major metro markets, behind only San Francisco/Silicon Valley, in a salary survey by Dice. Boston IT professionals reported earning an average yearly income of $78,700, 12% more the U.S average tech salary of $70,300.
A solid state economy and highly educated workforce, combined with the allure of one of the nation’s great cultural centers, makes Boston one of the most sought-after job destinations in the country.
Now, like many other metro regions in the United States, the problem is no longer a scarcity of jobs but rather a shortage of qualified candidates available to fill growing staffing needs.
“Boston is in a unique position,” said Scot Melland, CEO of Dice, the leading technology career site. “While we’ve seen an increased demand for IT employment all over the country, it seems especially acute in the Boston area.”
Dickey credits the IT hiring upswing on previously stalled company initiatives that have taken off again and a hot biotech market. He also acknowledged the state’s launching of several initiatives which has helped push growth forward.
One such initiative is called Massachusetts Business Connect (MBC). Launched last February by state officials, members of MBC conducted "needs assessments" interviews with top defense firms: BAE Systems in Lexington; Lockheed Martin Sippican in Marion; Textron Systems in Wilmington; and Dynamics Research in Andover.
In response, the state is now funding university programs that focus on much needed skills to the state’s makers of high-tech weapons systems.
The defense industry employs approximately 85,000 people in Massachusetts.
“The Boston IT job market is primed to continue this growth with all that is happening in numerous vertical sectors,” Dice’s Melland said.
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| "The region's tech job market has been on growth mode for some time" |
| - Robert Dickey, Sr. VP of Sapphire Technologies, Boston office |
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