AU industry bodies conflict over ICT job status

By Staff writers, ZDNet Australia
11 March 2003 04:20 PM
Tags: durie, acs, aiia, rob, job, survey, salary, ict
The brawl over the true state of information and communications technology (ICT) employment has taken another twist with the Australian Information Industry Association's (AIIA) release of figures indicating the market is stabilising.

The AIIA said today results from the organisation's latest survey of salaries and remuneration packaging revealed that involuntary attrition - defined as redundancy or performance-related dismissal - fell to 5.2 percent over the last six months, down from 18 percent between August 2001 and August 2002.

The statement, from AIIA executive director Rob Durie, follows the Australian Computer Society's (ACS') release of a report claiming unemployment in the sector was running at nearly twice the national average. The claim drew a heated response from the Minister for Communications and Information Technology, Senator Richard Alston, who said official figures revealed a rise of 14,400, or 7.5 percent in the employment of ICT professionals in the year to November 2002 - the same period covered by the ACS figures.

Durie said while ICT salaries had declined since the late 1990s, the contraction was patchy and "never across the board". While salaries for some individual roles had slipped, most notably in the e-business field, salaries for programmers continued to march upward by as much as five percent.

He added "the doom and gloom merchants would have us believe that salaries and contracts have collapsed since the tech wreck.

"Our survey proves that while the ICT industry has contracted in terms of certain individual roles, in general, salaries have continued to grow, albeit at a slower rate".

Durie said the survey was collated from input received from 118 companies.

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Talkback 2 comments

    People can qoute all the stati ...Anonymous -- 14/03/03

    People can qoute all the statistics they like. At the end of the day the truth is what the people on the frontline are expereincing. I have been in the IT industry for 13 years and many of my friends are also in the industry covering most of the key sectors including programming, networking, support and sales.

    From this real world experience I can tell you that wages have gone down across the entire industry. Wages have dropped less in the sectors that have traditionally paid higher wages but they have still dropped. The job market may not be as tough as it was 6 months ago but it is still the worst I have seen it in the last 13 years.

    Anyone that knows anything about statistics knows how useless they really are. The fact is the IT industry is in bad shape and I don't see a cure in the immediate future.

    Getting the IT jobless story s ...Anonymous -- 28/03/03

    Getting the IT jobless story straight

    A number of recent reports present varying pictures of IT employment and unemployment in Australia.
    It might appear that someone is wrong - either those indicating severe unemployment have made an error or else those saying the trends are flattening are using out-of-date data or failing to recognise reality. The real problem is that everyone is measuring something different.
    Surveys based on Recruitment ads are a good indicator of future employment demand. Surveys based on Salary movements can indicate the effects of sectoral, geographic or skill-based shortages or over-supplies.
    A survey of ITT professionals can indicate the downstream effects of structural changes and skill realignments.
    ABS labour force data is based on the designation of the individual (e.g. how many programmers are employed in Australia), whereas ABS industry employment data is based upon corporate classifications (i.e. what kind of company is it). These different measures are not interchangeable.
    And then we have the problem of defining the IT industry. Is it just the supply side - or does it also include some or all of the people employed as consultants and people working in telecommunications, retail computer sales and call centres?
    Do we only include IT professionals or should we also include all the other employees in IT companies, such as administration, sales, warehousing, engineering and logistics? And what about the demand side, all the IT professionals employed in banks, government departments and non-IT industry - are they included too?
    Each of the recent reports has a different inclusion/exclusion approach to these questions and so can present different results.
    Even the Australian Bureau of Statistics includes people employed in the manufacture of electric cable and wire, and includes the wholesale supply of photocopiers, but excludes call centre workers and most people working in computer retail.
    To the best of Whitehorse research and understanding IT industry employment fell over the past five years after the slight rise to 1999. The decline is starting to flatten and shows significant variation according to sector. We estimate a 13% per cent decline in total ITT industry employment from June 2001 to December 2002.

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