Wednesday, September 10, 2008

Michigan Jobs Report and IT Spending Report

Even though technology may be one of the least hard hit sectors in today's economy, that doesn't make it bullet proof either. As other industry sectors suffer, there's a natural fiscal prudence that trickles down to what companies in those suffering industries spend on IT initiatives. As you would expect, IT, like other major expenditures, get scrutinized and scaled back. The projects that are supported are typically those that are proven cost savers for the organizations. Here is an AP article about U.S. and European businesses cutting IT spending in 2008. It states that 43% of large companies in the U.S. and Europe have cut overall IT spending. My cynical mind makes me wonder if that actually means that 57% actually increased spending then. Probably not, as many companies will stand pat I'm sure, but the report did not dive into those details. It did state that they downwardly adjusted IT growth expectations for 2008 overall. Hopefully this means that there is nowhere to go but up for IT spending in 2009.

And this Manpower report talks specifically about Michigan jobs (not just IT). In Michigan, three percent of employers surveyed plan to cut staff in the 4th quarter, while nine percent of employers nationally surveyed plan to add staff. I'm not sure what to make of this as the 4th quarter typically gets slow for many jobs, including IT, at least the latter part of the quarter. But retailers have always added seasonal staff during that time. The bottom line here is that Michigan remains behind in overall jobs growth.

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