IT workers, once believed to be immune from the economic downturn and its job losses, will join the rest of the labor force facing cutbacks in 2009.

A new report just released by HR experts at Dice say that seven of 10 recruiters are curtailing IT hiring plans for the coming six months.

This is a dramatic change from Dice’s summer report when only about half of those survey were looking at cutbacks.

Based on talking with more than 1,000 respondents drawn from both corporate hiring managers and recruiting, staffing and consulting companies, the survey shows just how much the economic crisis has hit opportunities for IT pros

When asked, why the time to fill open positions is lengthening, the number one response is now the economy (52%), followed by the inability to find qualified technology professionals (23%) — a reversal of their rankings this summer.

“Given how tight the labor market still is for technology professionals, it is not surprising to see it ease along with the economic retrenchment,” said Tom Silver, Senior Vice President, Chief Marketing Officer. “While the coming months will undoubtedly see more layoffs as companies streamline costs, areas such as virtualization continue to show promise, especially as technology departments seek ways to save money and tighten budgets. In an age of streamlining, technology has never been more important.”

In fact, nearly half (48%) of all respondents admitted layoffs are likely in the next six months. It’s interesting that layoff expectations differ significantly between staffing, recruiting and consulting organizations (63% see it likely) and their potential clients themselves where 27% say technology workforce reductions are likely.

Likewise, 70% of respondents are seeing an increase in the number of candidates applying for positions. This dovetails with the resume trends on Dice as new resumes posted have increased 54% so far in the fourth quarter versus the same time last year.

With more qualified technology professionals competing for a dwindling number of positions, it’s not surprising that hiring managers and recruiters expect starting salaries to flatten. A majority (53%) expect flat salaries, while 27% anticipate paying slightly less than last year to new hires.

Tags: cutbacks, Economy, hiring, IT jobs