ITAA Data Show Overall Information Technology Workforce Grew Slowly in 2002

April 2, 2003

Hiring Managers Predict Lower Future Demand

Arlington, VA - In its latest report on the IT workforce, the Information Technology Association of America (ITAA) found little change in the aggregate workforce in the fourth quarter of 2002 as both hiring and dismissals of IT professionals slowed considerably. Overall, the IT workforce experienced a small 3.3% gain in 2002.

The data show that there was a net gain of 97,000 jobs in the fourth quarter, down from 147,000 jobs in the third quarter. In addition, hirings of IT professionals by non-IT companies outpaced those by IT companies by ten-to-one in the fourth quarter. Although there were fewer IT workers hired in the fourth quarter (265,000) than in the previous three, there were also fewer dismissals, continuing the recent leveling off pattern of the past few quarters. In comparison, 168,000 workers were let go in the fourth quarter of 2002, 211,000 in Q3 and approximately 350,000 in both Q1 and Q2.

According to the Dice Tech Skills profile, an addendum to the study compiled by technical online recruiting company Dice Inc., Java is now the most in-demand skill growing 27% to 4,171 jobs listed on Dice over the past year. SQL Software, C and C++, Oracle and Windows NT round out the top five skills.

"Both hiring and dismissals were at their lowest in the fourth quarter, showing relatively stable workforce patterns in what is often a seasonally soft quarter for hiring activity," said ITAA President Harris N. Miller. "Unlike late last year, we're seeing less optimism from hiring managers as they anticipate their needs over the next year, most likely because of instability from the war and other economic factors."

Key findings from the quarterly update are:

• U.S. companies hired 265,000 IT workers over the last three months, while dismissing 168,000, for a net gain of 97,000 workers.
• The total number of U.S. IT workers at the end of 2002 was 10,226,243, a 3.3% rise since January 2002, when there were 9,896,000 in IT.
• IT managers predict they will need to hire an additional 874,327 workers over the upcoming months, a prediction that is down from the third quarter and the beginning of 2002.
• Network administrators saw the first positive net change in their number in 2002, with companies saying they hired 45,000 and dismissed less than 6,000. Meanwhile, tech support workers represented 55% of all IT hires during the fourth quarter of 2002, with 147,437 hired.
• Database developers saw the largest growth in 2002, climbing 6.2% from 960,626 to 1,020,244 positions nationwide.
• Hirings by non-IT companies outpaced those by IT companies by ten-to-one in the fourth quarter.
• The most in-demand tech skills have mainly held steady since the initial Dice Tech Skills Profile was released in January of 2002. Compiled for the ITAA from Dice job listings, top tech skills include: Java, SQL Software, C and C++, Oracle and Windows NT.

  "The ITAA survey once again demonstrates a relatively static tech job market," said Scot Melland, President and CEO of Dice Inc. "The workforce continued to grow slightly throughout 2002, but the vast shortages reported a few years ago are down considerably. At Dice, we have found that core skills are still in demand, with Java, SQL Software and C, C++ rounding out the top three most demanded skills. Our Salary Survey also found that although salaries overall have remained flat since last year, salaries for these core skills have shown a modest increase."

  Since 1997, ITAA's studies have provided the most comprehensive analysis of U.S. IT workforce trends. The quarterly updates are designed to provide timely data on changes in demand for IT workers and overall workforce size. Dice sponsors the updates and also provides trends and information on skills that are most in demand. The update complements ITAA's comprehensive annual study presenting data that reflect the most current market conditions.

  ITAA contracted with Market Decisions Corporation of Portland, Oregon to collect the workforce statistics in Bouncing Back and the subsequent updates. The survey is based on telephone interviews with 300 hiring managers, selected at random at IT and non-IT companies, conducted between January 27 and February 14, 2003. Results have sampling variability of +/- 6 percent at the 90 percent confidence level.

  The Information Technology Association of America (ITAA) provides global public policy, business networking, and national leadership to promote the continued rapid growth of the IT industry. ITAA consists of over 400 corporate members throughout the U.S., and a global network of 49 countries' IT associations. The Association plays the leading role in issues of IT industry concern including information security, taxes and finance policy, digital intellectual property protection, telecommunications competition, workforce and education, immigration, online privacy and consumer protection, government IT procurement, human resources and e-commerce policy. ITAA members range from the smallest IT start-ups to industry leaders in the Internet, software, IT services, ASP, digital content, systems integration, telecommunications, and enterprise solution fields. For more information visit www.itaa.org.

  About Dice Inc.

  Dice Inc. (OTCBB: DICEQ, http://about.dice.com) is the leading provider of online recruiting services for technology professionals. Dice Inc. provides services to hire, train and retain technology professionals through its two operating companies dice.com, the leading online technology-focused job board as ranked by Media Metrix, and MeasureUp, a leading provider of assessment and preparation products for technology professional certifications. Dice Inc. has been operating under the supervision of the United States Bankruptcy Court for the Southern District of New York pursuant to Chapter 11 bankruptcy proceedings since February 14, 2003. Dice Inc. has proposed a plan of reorganization under which all of its currently outstanding capital stock is to be cancelled and substantially all of its new capital stock is to be issued to the holders of its $69.4 million of 7% Convertible Subordinated Notes due January 2005. Most of the Company's existing stockholders are not expected to realize any significant recovery on their investment