July 11, 2011 – Analysis of recent U.S. Bureau of Labor statistics by Janco Partners Inc. reveals some mildly positive news as 8,400 IT-related jobs were added June.

Janco CEO Victor Janulaitis notes the increase is less than the 10,900 in May, but still a step in the right direction. “The fact that total employment for telecommunications, data processing, information services, and system design sectors has risen by 29,300 jobs (seasonally adjusted) since January 2011 and by 55,500 in the last 12 months is a good sign,” he said.

As for the insurance industry, BLS data also showed there was a loss of 22,500 jobs in the last 12 months for financial services and insurance sectors. On the bright side the rate of loss of jobs in that sector is declining.

Janulaitis predicts that the overall IT job market will be soft for at least one more quarter as there will be more churn in IT staff as CIOs accelerate their move to more flexible staffing models. Indeed, the long-term implications of CIOs outsourcing more technical work, including managed IP services such as VoIP and VPNs bears consideration.

Moreover, Janco notes the preference for contractors for desktop and security services may rise as CIOs put more applications such as remote backup to the cloud. At the same time, they are looking to hire IT people with business and analytical skills, such as risk management and project management. CIOs report that they're having trouble hiring IT people because either they can't find IT professionals with the right business skills or they can't afford them. The combination of these factors should translate into more turnover in IT departments.

This story originally appeared on Insurance Networking News.

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