Is There a Tech Worker Shortage, or a Job Shortage for Tech Workers?
Is There a Tech Worker Shortage, or a Job Shortage for Tech Workers? 2006 TechPoint
Technology Summit, Technology Issues. State of Indiana, Noblesville, IN
Both good news and not-so-good news emerged from the 2006 TechPoint
Technology Summit, a yearly gathering of Indiana political and business
leaders discussing technology issues and trends in the state of Indiana.
The good
news is that money is available to fund technology-related businesses.
Unfortunately, the Summit also uncovered a few disturbing facts that
may not be such good news for Indiana's tech industry:
- Technology entrepreneurs in Indiana report that they have
difficulty finding skilled workers and customers - companies that are willing to take risk and invest in new technologies.
- Technology workers report they have difficulty
finding jobs that can compensate them for their experience and
training, as well as finding employers that are willing to invest in
technology and ongoing employee training.
These trends beg an important question: Is there a shortage of technology workers in the state?
Or is it that there is a shortage of jobs for technology workers?
Every business utilizes technology and hires technology workers (either directly or through outsourced service providers) so
it is critical that we understand this situation and address it.
Talent Shortage?
A recent analysis of Indiana's performance in technology-based economic development conducted by TechPoint and the Indiana Chamber of Commerce found that
Indiana lags behind most of its competitors in its share of innovation workers in the workforce, regardless of skill level.
It also found the state lags most of the 50 states for technologists and
technicians. The lack of workers with skills for a technology-based economy continues
to be troubling given the strong presence of higher education
institutions in the state. [i]
Job Shortage?
According to the Indiana Technology Index 2006:
- High tech services employment declined 4.6% in Indiana between 2003 and 2006
- Indiana has not yet made the full transition to a more diversified high-tech economy
- Indiana ranks 46th in high-technology services employment
[ii]
At the TechPoint Summit, three Indiana business owners
discussed their response to their technology hiring challenges and the
impact this has had on their ability to grow their businesses. They
described a consortium developed to recruit technology talent for their combined companies.
The consortium members' tactics include using headhunters to recruit talent from other local Indiana companies and from other states, but not from each other. While this might represent a creative solution to this
problem, it is not an ideal solution from the employee's perspective.
Other organizations are working to develop solutions that can benefit
both employers and employees. Efforts such as these may be paying off,
as statistics show Indiana's "brain drain" may be turning around and the
state is recently experiencing a "brain gain":
- Indiana residents in the age group ranging from mid-30s to
mid-40s are increasing. At the same time, the number of Bachelor
and advanced degrees held by Indiana residents has increased over past years. Smart people are returning to Indiana. [iii]
- This fall, 39,228 students were enrolled at Purdue, including a record 7,815 freshmen. International students numbered 4,824, which is among the highest in the nation for that measure. Indiana produces a significant number of graduates who make a contribution worldwide. [iv]
- High tech manufacturing employment increased 3.6% from 2003 to 2006. Indiana is currently second only to Michigan in high tech manufacturing in the nation. [v]
- Dramatic growth in available investment capital for high tech and life science businesses in Indiana is boosting the number of start-ups in these industries. [vi]
Both?
The reality is that both are problems. For the state to compete on a
national and global level, Indiana must actively pursue improvements in the
advancement of technology in business and attract and retain technology
professionals.
Businesses, associations, legislators and educational
institutions are working to reverse these trends, but much work remains
to be done on a local level.
I encourage you to get actively involved in your
associations, networking, and helping improve the situation through
participation in creating a strong IT community, which includes:
- Continuing
education
- Industry forums
- Network and support groups
Your future
opportunities depend on it.
References i, ii, iii, iv, v, vi: Indiana Technology Index 2006, "Charting Indiana's Progress Toward A Technology-Rich Economy," a report prepared by Techpoint and the Indiana Chamber of Commerce
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