The absolute, sure fire way to determine whether there's a specific
"shortage" is to look at the price of the product or service in alleged
short supply relative to general inflation. In this case, there's no great
mystery: we have solid wage/salary data in most developed countries. For
example, the U.S. Bureau of Labor Statistics (BLS) publishes wage data
annually by occupation. Even Forbes should be able to understand basic
price theory. So let's take a look together, shall we?

As background, BLS publishes its Occupational Employment Statistics based
on the month of May each year. The most recent data are from May, 2014, as
I write this. You can find BLS's OES statistics here:

http://www.bls.gov/oes/tables.htm

So let's look at the National median salaries for occupational group
15-0000, "Computer and Mathematical Occupations." For reference, less than
4% of that occupational category consists of the second part ("Mathematical
Occupations"), so we're really looking at IT occupations here with
reasonable precision. Here are the median nominal wages (month of May each
year, annualized) for the past 10 years along with nominal growth
percentages year to year:

2014: $79,420 (+2.0%)
2013: $77,860 (+2.1%)
2012: $76,270 (+1.6%)
2011: $75,080 (+1.8%)
2010: $73,720 (+1.1%)
2009: $72,900 (+2.3%)
2008: $71,270 (+3.2%)
2007: $69,070 (+4.4%)
2006: $66,130 (+3.4%)
2005: $63,940

Also for reference, if you take the 2005 figure ($63,940) and plug it into
BLS's Consumer Price Index inflation calculator, the 2014 figure would be
$77,506. Thus the 2014 median wage in this occupational category is less
than 2.5% above what the CPI-U inflation rate would predict if wages merely
kept pace with inflation. As we can also see the rate of median wage
increase in this occupational category has generally slowed over the past
few years. I should also point out an important footnote: it appears that
these statistics assume a fixed number of hours worked per year. There is
some evidence that hours worked per year have increased somewhat over this
time period.

To net it out, we don't see evidence in these data that there's an IT labor
shortage in the United States. Or, if there is a "shortage," it isn't
getting materially worse. We could also look at productivity data --
perhaps one could argue that employers are getting less output for the same
wage input -- but (to summarize briefly) the productivity statistics argue
the opposite.

My views are my own, as always here. The statistics are the Bureau's.

--------------------------------------------------------------------------------------------------------
Timothy Sipples
IT Architect Executive, Industry Solutions, IBM z Systems, AP/GCG/MEA
--------------------------------------------------------------------------------------------------------

E-Mail: [email protected]
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