| July 2006 |
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With a steady stream of IT investment, a solid state economy and the glamorous glare Los Angeles casts around the world, the City of Angels is likely to continue to be the envy of many technology sectors throughout the country.
The unemployment rate in the Golden State has fallen to 4.9%, its lowest level in nearly five years, and that has the Los Angeles tech job market feeding off the economic boom. A report released last week from the American Banking Association showed employment growth has been particularly strong in Southern California, including the Los Angeles basin.
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Technology job listings for the Los Angeles area on Dice, the leading technology career site, increased an impressive 18% during a six-month period ending in June. There are over 5,000 tech jobs in the LA area currently listed on the firm’s Web site. The most sought-after IT skills right now, according to Dice, include Java, SAP and Oracle.
PointRoll, a leading developer of innovative rich media technology solutions, is a perfect example of the regional surge. Recently the LA-based firm announced that it experienced significant year-over-year growth, hiring more than 80 employees since 2003, and an additional 61 new employees since January 2006. “It’s a tight job market and the need for talent is stronger than ever,” said Andy Ellenthal, senior vice president of PointRoll.
“If you talk to almost anyone, they will say the job market is good,” said John Stuart, vice president of Sapphire Technologies, an IT staffing firm. “But they are having trouble finding enough skilled workers."
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| "Clients having success hiring are those who now realize the game is changing and unless they move fast, good candidates don't stay on the market very long" |
| - John Stuart, VP of Sapphire Technologies |
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IT professionals landing in Los Angeles report earning an average salary of $73,600 in 2005, $3,300 more than the overall U.S. average, according to a survey by Dice.
Meanwhile, venture capital continues to pour into the state to the tune of more than $10 billion a year, and tech companies exported $47.8 billion of goods and services from California to countries around the world, according to a recent study conducted by AeA, the nation’s largest trade association for the high-tech industry.
All this is priming the pump for an IT brain-drain, say several sources.
“Clients having success hiring are those who now realize the game is changing and unless they move fast, good candidates don’t stay on the market very long,” Stuart said.
On the national level, chief information officers expect to increase IT hiring in the third quarter of 2006, according to the Robert Half Technology IT Hiring Index and Skills Report. Of executives polled, 13% plan to add IT staff in the next three months and 3% anticipate cutbacks.
“Continued corporate expansion is prompting many CIOs to initiate new projects and expand hiring plans,” said Katherine Spencer Lee, executive director of Robert Half Technology. “As a result, competition for the most skilled candidates is increasing as hiring managers seek individuals who can support internal staff and assist with new development initiatives.”
And it’s no longer just the certified IT worker commanding the big bucks, according to Foote Partners, an IT compensation and workforce management research firm.
“While technical skills are still important, employers are not placing the same premium on certification of these skills they once did,” said David Foote, president and chief research officer for Foote Partners.
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| Dice job postings in Los Angeles are up 18% since Dec. |
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