CIO Survey Shows Slowdown in Technology Hiring

U.S. companies expect a slower pace of hiring for information technology workers in the third quarter of 2001, compared to earlier this year, according to a study released June 29 by RHI Consulting. The Menlo Park, Calif., firm provides contract IT workers to businesses.

Chief information officers projected a 12 percent increase in the hiring of IT professionals during the third quarter, a nine point decline from the second quarter, according to RHI Consulting's quarterly Information Technology Hiring Index.

Sixteen percent of technology executives plan to add staff in the next three months, while 4 percent expect cutbacks, according to the index. Seventy-nine percent of CIOs plan to maintain existing staff levels, up 6 points from the second quarter.

RHI Consulting polled 1,400 CIOs within a random sample of U.S. companies with 100 or more employees.

"Many firms have put hiring plans on hold as a result of a more cautious economic climate," said Katherine Spencer Lee, executive director of RHI Consulting. "Firms that are adding support report demand for networking talent, Internet/intranet developers and help desk support specialists in particular."

New England states will see the most active hiring in the third quarter, according to the survey. Twenty-two percent of CIOs said they plan to expand their IT departments. Only 1 percent said they anticipate reductions in personnel.

In addition, the transportation and professional services sectors should see hiring activity above the national average, with hiring increases of 15 percent and 14 percent, respectively.