The demand for technology professionals in the job market is currently at its peak, with the unemployment rate for IT workers dropping significantly last month. According to a report from the US Bureau of Labor Statistics (BLS), tech job postings have reached their highest levels since last June, and the unemployment rate for tech occupations has decreased from 2.8% in April to 2.5% in May, well below the national average of 4%.
Overall, the US economy added more jobs than expected in May, showing resilience in the post-pandemic labor market. Employers added 272,000 jobs, although the overall unemployment rate increased slightly, ending a streak of 27 months of unemployment below 4%. The tech sector also saw growth, with technology companies adding staff in May, albeit at a slower pace than in recent months.
According to industry group CompTIA, tech hiring intent is at its highest point since last year. The sector added 2,181 jobs in May, bringing total employment to nearly 5.6 million workers. Various tech occupation categories experienced double-digit increases in job postings, including data scientists, database administrators, software developers, web developers, network architects, and tech support specialists.
In terms of job requirements, employers are increasingly looking beyond four-year degrees, with 45% of tech job postings in May not requiring candidates to have a university degree. This trend reflects a broader shift in the job market towards valuing skills, experience, and personality traits over formal education. Soft skills like a strong work ethic, problem-solving abilities, and attention to detail are highly valued by employers.
Inflation has driven up tech salaries, with the median salary for IT professionals surpassing $103,000. Demand remains high for workers with AI and machine learning skills. However, not all outlooks on the job market are optimistic, with some experts pointing to an unemployment rate of 4.5% for IT professionals. Companies are still adjusting their workforce to improve productivity, leading to a soft job market for IT professionals.
Overall, the tech job market is showing signs of growth and resilience, with a focus on skills and experience rather than formal education. Employers are adapting to the changing landscape by widening their search for talent and valuing soft skills in current and potential hires. Despite some challenges, the tech sector continues to be a key driver of employment and economic growth in the US. According to data from CompTIA, which is based on the latest jobs report from the US Bureau of Labor Statistics (BLS), the overall US unemployment rate remained steady at 3.9% in April, with 175,000 jobs added. Ger Doyle, head of recruitment service Experis North America, noted a “cooling effect” in the job market, with increased demand in medical/health, IT, and executive management roles.
In the tech sector, AI Safety and Compliance roles saw a significant increase of 129% since July 2023. Employers are now looking for IT professionals with a blend of technical and soft skills to remain competitive. Additionally, the trend of skills-based hiring in the tech marketplace is on the rise, with 46% of job postings not specifying a four-year degree requirement.
For college graduates, the road to employment is tougher, with an unemployment rate of 6.2%. However, employers are moving away from college degree requirements and focusing more on work experience, certifications, and soft skills. The tech industry saw layoffs in 2022 continue into this year, indicating a shift in desirable job positions.
Technology companies added 4,280 workers in April, with growth in technology services, software development, and cloud infrastructure roles. Despite a decline in technology occupations in the economy, the IT job market is softening, with layoffs mainly in IT service providers being replaced by AI developers and data scientists.
The real growth story in technology hiring continues to be AI, as companies race to implement the technology in digital transformation projects. Companies are facing a shortage of talent for AI roles, with AI developers and data scientists in high demand. Employers must find a balance between hiring expensive talent and maintaining revenue. The tech industry is poised for growth, with an increase in hiring for technology roles in March, signaling a return to growth after a period of layoffs. Tech occupations saw a decline in unemployment rates in March, dropping from 3.5% in February to 3.0%, according to CompTIA. This decrease was accompanied by an increase in job postings for tech positions, with employers adding 191,000 new job listings in March, the highest volume since August 2023.
Software developers and IT support specialists were among the occupations that saw the largest increase in job openings from February to March. Interestingly, 46% of tech job postings in March did not require a four-year degree, indicating various paths to a career in technology. Certain job categories, such as IT support specialists, network support specialists, and web UI/UX designers, had even higher percentages of postings that did not specify a degree requirement.
The demand for AI and machine learning engineers has been steadily growing, leading to increased training and upskilling opportunities. ManpowerGroup’s senior vice president emphasized the importance of humanizing tech roles to continue this growth and make tech careers more accessible to both employers and employees.
CompTIA’s forecast for tech employment growth in 2024 is promising, with a projected net gain of over 300,000 new jobs. Top occupations expected to see growth include data scientists, cybersecurity analysts, software developers, and web designers. The tech workforce is projected to grow twice as fast as the overall US workforce in the next decade, with certain categories like data science, cybersecurity, and software development expected to grow at even faster rates.
Overall, the tech industry is showing resilience and stability in the face of economic uncertainty, with projections indicating growth in various tech occupations across the US. February saw an increase in tech industry employment, with a significant uptick in new jobs added to the workforce compared to January. However, the numbers still fell short of December’s figures. Tim Herbert, chief research officer at IT industry group CompTIA, noted that the hiring of tech services and software development personnel was the lone bright spot in February’s lackluster technology employment data.
Overall, tech industry employment saw a modest increase, but employer job postings for future tech hiring remained flat. CompTIA’s latest jobs report also revealed a decline in tech occupations throughout the economy.
According to Herbert, there is a lag effect of market developments working their way into government employment data. While employers across all sectors continue to demand tech talent, there are pockets of employers recalibrating their staffing levels.
Similarly, IT business consultancy Janco Associates highlighted the lackluster performance of the IT job market in February. The hiring of IT professionals was hindered by the lack of qualified individuals and a slowing economic picture.
Janco’s data showed that there are currently 4.18 million US workers employed as IT professionals, with the rate of growth in new IT jobs slowing down. The firm also reported over 121,000 unemployed IT professionals and a shrinking IT job market.
The Bureau of Labor Statistics drastically revised its January job gains, dropping the previously reported numbers by over 124,000 jobs. Despite this, tech employers added 185,000 new job postings in February, bringing the total number of active tech job postings to over 436,000.
Positions in artificial intelligence and jobs offering hybrid, remote, or work-from-home options accounted for a significant portion of tech job postings. Technology companies added approximately 2,340 workers last month, with employment increasing in the technology services and software development sub-sector.
Looking ahead, the US is expected to lead all other nations in IT hiring from April through June, according to IT staffing firm Experis. Ger Doyle, head of IT staffing at Experis North America, noted that while worker demand will remain strong, it will be more balanced and concentrated.
Nurses, software developers, and front-line retail workers were identified as the three most sought-after roles in the US. In the tech space, AI and machine learning engineers have seen significant growth, with finance and consulting companies among the top employers of this specialized tech talent.
Despite layoffs in the tech sector, companies like Google, META, Amazon, and Apple are still hiring. Additionally, consultancies and financial services firms such as KPMG, Booz Allen Hamilton, JPMorgan Chase & Co, and Slalom Consulting are also actively recruiting.
While the demand for artificial intelligence and machine learning engineers decreased slightly in February, overall job growth in these roles has been trending upward since May 2023. Wages have remained steady, with increases seen in sectors where remote and hybrid roles have become more common, such as IT and business operations.
Experis data indicated that hybrid job roles are strongest in the IT and finance sectors. Overall, the tech industry continues to show promise despite some challenges in the job market. In January, there was a significant increase in active job postings compared to December 2023, with a total of 33,727 more postings. This was the largest month-to-month increase in a year. The demand was particularly high in areas such as software development, IT project management, data analysis and science, IT support, and systems analysis and engineering. Additionally, the number of job postings offering hybrid, remote, or work-from-home options exceeded 30,000 in January, up about 5,000 from December.
Becky Frankiewicz, the president of staffing firm ManpowerGroup NA, noted that there is a post-pandemic rebalancing happening in the job market. While hiring is not as strong as it was a year ago, it is better than pre-pandemic levels and has been improving month-over-month. There has been a shift in job availability with more opportunities in IT, finance, accounting, and engineering sectors.
However, layoffs in the tech sector have been a concern, with major companies like Amazon, Google, and Microsoft laying off tens of thousands of workers last year. The number of tech employees laid off tripled between December and January, according to industry tracker Layoff.fyi. Despite this, tech companies are still hiring for specific roles, such as AI/ML engineers, as demand for these skills has increased.
The job market remains competitive, with companies focusing on hiring to meet specific demands. Internal mobility and upskilling are becoming important factors for employees to navigate the changing job landscape. Tech skills continue to be in high demand, with opportunities for remote work and competitive salaries.
In December 2023, unemployment in the IT industry slightly increased, but tech occupations remained below the overall national unemployment rate. There was a fluctuation in tech employment throughout the year, with job postings for tech occupations also experiencing changes. The top job postings in the US were for software developers, IT project management, data analysts, IT support specialists, systems analysts, and engineers, and data scientists.
Overall, the tech job market is evolving, with a focus on specialized skills like AI and security. Experienced professionals in these areas continue to have opportunities, while entry-level positions may be affected by automation and AI advancements. The demand for full stack developers, data scientists, and AI experts remains strong in the job market. Doyle mentioned that 76% of IT employers are facing challenges in finding the talent they need. This information was supported by IT staffing firm ManpowerGroup, who emphasized the importance of supporting people in gaining experience and developing new skills to alleviate talent shortages.
According to a recent Employment Outlook Survey from ManpowerGroup, US employers are anticipating measured hiring in the first quarter of 2024, with a Net Employment Outlook (NEO) of +35%. Globally, the US ranks second in the world, tied with a NEO of +35%, behind India and The Netherlands at +37%.
Despite challenges in the labor market, tech employment remains stable, according to Tim Herbert, chief research officer at CompTIA. However, other experts like Janulaitis noted layoffs at big tech companies impacting overall IT hiring in 2023.
Talent mobility is expected to be a key trend in the new year, with employers encouraged to look for potential and help employees make lateral moves within their organization.
In December, overall US employment increased by 216,000 people, with professional, scientific, and technical services adding 25,000 jobs. For the full year of 2023, the US added 2.7 million jobs, with unemployment rates slightly higher than in 2022.
Looking ahead, Becky Frankiewicz, president of ManpowerGroup, North America, highlighted the need for balance and moderation in the 2024 labor market. Average hourly wage growth has also accelerated slightly, providing workers with increased spending power.
While the IT job market has seen some challenges, there are still opportunities for tech professionals. Despite a decrease in the number of new IT jobs added to the economy, the unemployment rate for tech workers remains low. Companies of all sizes are competing for tech talent, leading to difficulties in filling roles.
Overall, the IT job market has shown a slight decline in the past year, but there are still unfilled positions and opportunities for growth. Experts predict that the size of the IT job market will remain stable in 2024, with limited growth expected. CompTIA, a non-profit association for the IT industry and its workforce, has reported a significant increase in hiring among small and medium-sized businesses (SMBs). They also noted a surge in demand for AI talent, with AI-related job postings accounting for 12% of total job postings, marking a substantial increase.
Despite a decline of 210,000 tech occupations in the economy last month, CompTIA reported a decrease in tech unemployment to 1.7%, well below other figures. Tech occupations across the economy saw an increase of 483,000 jobs, with tech firms adding 2,159 workers primarily in IT services and custom software development.
Tim Herbert, Chief Research Officer at CompTIA, stated that the rise in demand for AI talent is reflected in the job posting data, highlighting the need for skills in data infrastructure, cybersecurity, and business process automation. The Tech Jobs Report showed that employer hiring activity for tech positions totaled 155,621 in November, with AI positions surpassing the 10% threshold for the first time.
ManpowerGroup also observed a stabilization in the IT job market, with a decrease in job postings across various sectors. The time to fill roles has dropped significantly, making it easier for employers to fill vacancies, particularly in highly skilled roles like software development.
California, Texas, Virginia, Florida, and New York had the highest volumes of tech job postings, with active markets in Charlotte, Boston, San Diego, Cleveland, and Phoenix. Despite a cooling in the employment market, there is still demand for highly skilled positions such as app developers, cybersecurity experts, and data analysts.
The number of unfilled openings for IT professionals has decreased, indicating a pullback from the peak seen earlier in the year. About 20% of job postings offer remote work options, with AI-skilled workers, software developers, IT support specialists, systems analysts, and data scientists among the most in-demand roles.
Overall, the demand for AI and machine learning skills remains high, although the number of coder openings is on the decline. It’s clear that the IT job market is evolving, with a shift towards remote work options and a continued demand for specialized skills in emerging technologies. The IT job market is facing challenges due to a lack of qualified individuals and a slowing economic outlook. According to Janco’s latest tech market jobs report, this will hinder the growth of the IT job market size.
In September 2023, the US unemployment rate remained at 3.8%, but the market added 336,000 jobs, exceeding analyst expectations. However, tech employment lagged behind in the upbeat employment report. Tech jobs across all sectors fell by an estimated 20,000, with the technology sector unemployment rate rising from 2.1% to 2.2%. Tech salaries also saw a decline, hitting a five-year low in inflation-adjusted terms.
Tech sector companies reduced staffing by over 2,600 positions in the past month, and employer job postings for future tech hiring decreased as well. Despite this, demand for software positions remained high, along with positions in IT project management, IT support, data analytics, and systems/cloud infrastructure.
Positions in emerging technologies accounted for a significant portion of tech job postings, with 36% associated with artificial intelligence. However, Tim Herbert from CompTIA noted that there was a lag in hiring despite high demand for tech skills.
While large companies have reduced hiring, smaller firms are still struggling with a skills gap and are hiring workers laid off by larger companies. Average hourly earnings for all employees rose slightly, but real wages in the technology sector appeared to be declining.
A report from job matching site Hired highlighted significant shifts in the tech talent market, with US local salaries experiencing a year-over-year decline. Salaries for junior talent with less than four years of experience also decreased, indicating a growing skills gap in the industry.
As companies limit their hiring locations and rely more on AI tools, the future talent pipeline is at risk of a deficit. It is crucial for companies to embrace diverse candidates with transferable skills to address industry challenges, especially with the rapid advancements in emerging technologies like AI.
Overall, the highest-paid tech workers were engineering managers, particularly those dealing with AI tools and increased cybersecurity challenges. Engineering managers in the US and UK are experiencing an increase in their average earnings, with figures reaching $202,000 and £118,000, respectively. This marks a significant 10% rise from £107,000 at the end of 2022.
In 2023, specialized engineers are highly sought after in the job market, particularly those with expertise in AI applications like machine learning, cybersecurity, data, and back-end engineering.
While AI is not an immediate threat to job security, it could pose challenges for job seekers in the future. A notable portion of employers (47%) anticipate leveraging AI to reduce headcounts by 2029, despite the majority of surveyed candidates (87%) not currently perceiving AI as the primary threat to their roles.
Job gains have been observed in various sectors such as leisure and hospitality, government, healthcare, professional services, scientific and technical services, and social assistance. Employment in professional, scientific, and technical services saw an increase of 29,000 jobs in September, consistent with the average monthly gain over the previous year.
Victor Janulaitis, CEO of Janco Associates, highlighted the top 10 AI skills in demand for IT professionals, with ChatGPT being the most frequently mentioned skill in client job requisitions. Other skills include Natural Language Processing, TensorFlow, Image Processing, PyTorch, Generative AI content creation, Midjourney, AI Chatbot, Model Tuning, and Stable Diffusion.
The PricewaterhouseCooper’s Global Workforce Hopes and Fears Survey revealed that a significant portion of the global workforce is eager to learn new skills, embrace AI, and take on new challenges. However, many companies struggle to tolerate debate, dissenting ideas, or even minor failures, leading to restlessness among workers, with 26% planning to leave their current job within the next 12 months.
Unemployment figures in the tech industry have fluctuated over the past six months, perplexing industry experts on what may be the new norm. In August, tech unemployment rates increased alongside the overall US unemployment rate, with a rise from 3.5% in July to 3.8% in August according to the US Bureau of Labor Statistics.
Despite the mixed messages in the employment report, the tech industry continues to show growth in various areas, with a steady trend in the depth and breadth of the tech workforce. Job postings for future tech hiring remain high, with information security analysts, software developers, tech support specialists, computer systems analysts, and data scientists being in-demand occupations.
Companies are adapting to the changing landscape by considering emerging technologies in their recruitment processes. Employers are recognizing the importance of upskilling their workforce to address staffing challenges, with a focus on AI, virtual reality, cybersecurity, technical support, and customer experience.
Overall, the integration of AI, machine learning, VR/AR, and other emerging technologies is reshaping industries and driving the need for a flexible and skilled workforce. Companies are actively seeking to hire or upskill existing talent to capitalize on potential productivity gains in this evolving landscape. Smart employers understand that in order to succeed in today’s rapidly advancing technological landscape, they must embrace digitization and prioritize the nurturing of human talent. This approach not only enhances their readiness for the future but also strengthens their competitive edge in the market.
Recent data from the US Bureau of Labor Statistics (BLS) highlights the positive trend in tech-sector employment, with the unemployment rate dropping from 2.3% to 1.8% in July. This decline reflects the growing demand for tech talent across various industries, as companies continue to expand their workforce.
According to CompTIA, a nonprofit association for the IT industry and workforce, the overall US unemployment rate also saw a slight decrease, falling from 3.6% in June to 3.5% in July. The addition of 187,000 non-farm jobs further demonstrates the overall growth in employment opportunities.
In the tech sector specifically, companies have been actively hiring, with a notable increase in staffing by 5,432 employees. Leading the way in new IT hires are custom software services, systems design, PC manufacturing, semiconductor production, and other related fields.
IT salaries have been on the rise, reflecting the increased investment in technology by companies. The focus on e-commerce, mobile computing, and cybersecurity measures has driven the demand for skilled IT professionals, particularly in areas such as software development, data analysis, and IT support.
While the tech job market remains competitive, employers are advised to adopt proactive talent development strategies to attract and retain top talent. This includes investing in training programs, upskilling initiatives, and creating a conducive work environment that promotes continuous learning and growth.
However, challenges persist in the IT job market, as highlighted by Janco Associates. The organization reported a decline in IT jobs year-to-date, with a significant reduction in unfilled positions for IT professionals. This trend indicates a more challenging landscape for IT professionals, particularly in roles such as computer system design, telecommunications, and content providers.
Despite these challenges, there are still opportunities for experienced IT professionals, especially in high-demand areas such as cybersecurity, programming, and blockchain technology. Employers are advised to focus on optimizing their IT operations, automating processes, and streamlining services to maximize efficiency and productivity.
In conclusion, the key to success for employers in this era of rapid technological advancement lies in finding the right balance between digitization and human talent development. By investing in their workforce, fostering a culture of innovation, and staying abreast of industry trends, smart employers can position themselves for sustained growth and success in the digital age. In July, about 23% of all tech job postings were for positions in emerging technologies or jobs that require emerging tech skills. Within the emerging tech category, 35% of job postings referenced artificial intelligence (AI) work and skills, according to CompTIA.
According to the US Bureau of Labor Statistics (BLS), IT workers are in a strong position to not only keep their jobs but also receive significant pay bumps when seeking new opportunities. The US unemployment rate dropped slightly to 3.6% in June, with 206,000 jobs added. Wages also increased, with average hourly earnings growing by 4.4% over the previous year.
Tech sector companies added 5,348 jobs in June, with positive gains in IT and custom software services, systems design, PC, semiconductor and components manufacturing, and cloud infrastructure. However, overall tech occupations throughout the economy declined by an estimated 171,000, with the unemployment rate for tech jobs rising to 2.3%.
Software developers were particularly in high demand, with a significant increase in job openings in June. Other IT positions that saw marked increases included IT project managers, data scientists, system analysts, IT support specialists, web developers, cybersecurity analysts, engineers, and database administrators.
Despite the overall easing of the labor market in June, tech-related employment remained strong. Job postings for future hiring were down slightly, but opportunities to work with artificial intelligence in the emerging job market were on the rise.
Employment rates for prime age workers have returned to pre-Covid levels, and companies are reluctant to make further cuts despite concerns about a possible recession. IT workers, in particular, are in high demand, with job market candidates receiving multiple offers.
Employers in the IT market have the most aggressive hiring plans for the third quarter, with unmet demand for talent highest in IT-related fields. ManpowerGroup reported that employers in IT are facing challenges in hiring, indicating that tech workers who are laid off may soon find new opportunities in the market.
As the workforce continues to evolve, companies are investing in re-skilling and up-skilling their employees. Hybrid work arrangements are becoming more common across all industries, with remote work opportunities increasing in the tech sector.
Despite the challenges, opportunities in industries such as logistics, sales, medical, and finance are growing. Employers are focusing on retaining and investing in their existing talent, with a shift towards permanent roles over temporary positions.
Overall, the tech workforce is expected to continue growing, with companies adapting to the changing landscape and investing in the skills needed for the future. One of the key reasons for the differences in employment opportunities between the US and Europe is the lack of generous benefits provided by US employers. Flexible work arrangements, paid maternal leave, and childcare assistance are not as common in the US as they are in European countries. This lack of support can make it financially challenging for individuals, especially parents, to return to work. Kohn, an expert in the field, emphasized that if a significant portion of one’s income is spent on childcare, it may not be feasible to go back to work. He suggested that a comprehensive overhaul of worker benefits rights by the federal government is necessary to address this issue. Additionally, the decline in US immigration rates has further limited the pool of available workers, even prior to the pandemic, leading to potential job shortages.
In May 2023, the tech employment landscape in the US showed mixed results. While technology companies cut around 4,725 jobs, the overall number of technology jobs in the economy increased by 45,000. Job postings for tech positions decreased from April, indicating a slight slowdown in hiring. Despite these fluctuations, the unemployment rate for tech occupations remained low at 2.0%, compared to the national rate of 3.7%. The demand for tech professionals remains strong, with software developers, IT project managers, data analysts, IT support specialists, and data scientists among the most sought-after roles.
In April 2023, technology companies added nearly 19,000 workers, marking the highest increase since August 2022. However, the overall number of technology jobs in the economy declined by 99,000, with employer job postings surpassing 300,000. The unemployment rate for tech occupations slightly increased to 2.3%, still below the national average. Despite the mixed signals in the labor market, IT executives and managers continue to be among the highest-paid workers in the US, with computer and information research scientists, database architects, and software developers earning significant salaries.
Overall, the tech industry remains a lucrative field, with high demand for skilled professionals. While the job market may experience fluctuations, the need for tech talent continues to grow. Companies are hiring for in-demand skills while adjusting their workforce to meet changing demands. Despite challenges such as limited benefits and immigration rates, the tech sector in the US remains resilient and offers opportunities for those with the right skills and expertise. Tech job openings in the US have hit a two-year low, with employers listing over 300,000 job postings for tech positions in April. This indicates that the demand for tech talent remains strong, as seen in the 316,000 tech job openings in March.
In April, IT services and custom software development saw the most hiring activity, with an additional 12,700 jobs. Other areas that reported job gains included cloud infrastructure, data processing and hosting, and PC, semiconductor, and components manufacturing.
Employer job postings for tech positions were spread out geographically and across various industries. Administrative and support, finance and insurance, and manufacturing were among the most active sectors for tech job postings in April.
The number of tech job postings offering remote or hybrid work arrangements continued to trend upwards in April, with over 65,000 positions nationwide. Software developers, IT project managers, data analysts, and roles in emerging technologies were among the most sought-after positions.
Washington, DC, New York City, Dallas, Los Angeles, and Chicago had the highest volumes of tech job postings in metropolitan markets. Dallas, Houston, Philadelphia, Boston, and Seattle saw the largest month-over-month increases in tech job postings.
In March 2023, tech sector employment declined by 839 jobs, according to the US Bureau of Labor Statistics and CompTIA. However, employer job postings for tech positions increased by 76,546 month-over-month, totaling 316,000 openings. The tech unemployment rate remained unchanged at 2.2%.
Overall, technology employment across all sectors increased by an estimated 197,000 positions in March, marking the highest level of employer hiring activity in seven months. The total number of IT professionals employed in the US is now over 4.18 million.
Despite recent interest rate hikes by the US Federal Reserve, the US economy added 236,000 jobs in March, with the overall unemployment rate dipping to 3.5%. While there have been high-profile layoffs in the tech industry in response to the post-COVID boom, there is still a significant demand for IT professionals in areas such as software development, IT support, cybersecurity, and project management.
Employers are facing challenges in filling job roles, with 77% reporting difficulty in finding qualified talent. Organizations are focusing on improving benefits and offering remote work options to attract and retain highly skilled workers. Despite the recent layoffs, job growth in the tech industry has exceeded expectations for 12 consecutive months. Boosting benefit offerings can be an effective strategy to slow down staff turnover, reduce the risk of burnout, and improve morale in the workplace. This can also have a positive impact on the bottom line of a company. In February 2023, the tech sector saw a modest reduction in employment by 11,184 positions, which accounted for 0.2% of the total tech industry workforce of over 5.5 million individuals.
Unemployment in the tech sector also increased from 1.5% in January to 2.2% in February, according to data released by the Bureau of Labor Statistics (BLS) and CompTIA. This increase was still lower than the national unemployment rate of 3.6%. The number of technology occupations in all industries decreased by 0.6% or 38,000 positions, while tech manufacturing added a net of 2,800 jobs, marking the fifth consecutive month of positive gains.
Despite the decline in employment and job postings, there continues to be a shortage of tech talent to fill over 145,000 IT job openings. Layoffs within the tech industry have primarily impacted non-IT positions, with roles related to data center operations, administrative functions, and HR recruitment being affected. The demand remains high for security professionals, programmers, and blockchain IT professionals.
IT consultancy Janco Associates noted a slowdown in the creation of new IT jobs in 2023, with a net loss of jobs in the first two months of the year. CIOs and CFOs have become more cautious in hiring decisions due to economic uncertainty and inflationary pressures. This has resulted in a decline in IT job market growth and a negative trend in hiring new IT professionals.
Overall US employment saw an increase of 311,000 jobs in February, exceeding economists’ predictions. While the unemployment rate slightly increased, there are still nearly two job openings for every unemployed worker. Consumer spending also rose to its highest level in nearly two years, indicating positive economic trends across various industries.
In conclusion, the tech sector is experiencing some challenges in terms of employment and job creation, but the long-term outlook for tech talent remains positive. Boosting benefit offerings and improving workplace morale can be essential strategies to retain employees and mitigate the impact of economic uncertainties on the tech industry. In February, the number of long-term unemployed individuals, those who have been jobless for 27 weeks or more, remained relatively stable at 1.1 million people, accounting for 17.6% of the total unemployed population.
Job postings for technology positions experienced the most significant increase in the scientific and tech services industry sector (35,257), finance and insurance (24,735), and manufacturing (20,246).
Overall, the US job market saw average hourly earnings grow by 4.6% year-over-year, slightly lower than the previous year but still above pre-pandemic levels, according to data from the Bureau of Labor Statistics (BLS).
Despite the ongoing tech talent shortage driving up IT salaries, future pay increases are projected to be less than initially expected, as stated by Janco Associates. IT salaries rose by an average of 5.61% in 2022, with projections for an 8% increase this year. However, due to inflationary pressures, median salaries for IT professionals in 2023 are now estimated to be 3% to 4% higher than in 2022.
The mean compensation for all IT professionals in 2023 is $101,323, with IT professionals in large enterprises earning over $102,000 on average, and executives averaging $180,000.
Employers who fail to meet employees’ salary expectations may struggle to retain talent, especially as other job opportunities outside traditional tech companies continue to grow, according to Gartner Research analyst Mbula Schoen.
In January 2023, the unemployment rate in the technology job market decreased to 1.5% from 1.8% in December. Despite this improvement, there was a mixed outlook for the technology sector, with a decline in current employment and an increase in employer job postings for future hiring, according to CompTIA.
While the overall US unemployment rate dropped to 3.4% in January, the number of technology workers hired decreased by 32,000, marking the first negative growth in over two years. Technology companies also cut 2,489 positions in January.
However, the US added 517,000 jobs in January, with the Bureau of Labor Statistics making significant revisions to its November data to correct reporting errors.
Employer online job postings for future tech hiring increased by 22,408 in January, reaching a total of 268,898 for 2023, according to CompTIA.
The drop in the tech unemployment rate in January suggests that many laid-off workers were re-hired, with non-technical roles like sales and marketing being the most affected by layoffs.
Despite fluctuations in the job market, the demand for tech talent remains high, as confirmed by the low tech unemployment rate and steady hiring activity across various sectors.
While there was a decline in IT job market growth in January, there remains a significant number of unfilled IT positions due to a lack of qualified candidates. This shortage has led to increased demand for tech workers, resulting in a 5.6% increase in overall IT salaries, with small and medium-sized businesses seeing a higher average increase.
In January, US-based employers announced 102,943 job cuts, a significant increase from the previous month and the same period in 2022, highlighting the ongoing challenges in the job market. In January, 41% of job cuts were in the tech industry, leaving a significant expertise gap in an industry that relies on bright minds to innovate and grow. Despite this, the demand for tech skills continues to rise as new technologies like cloud computing, AI, and microservices evolve.
IT jobs have consistently been ranked among the best jobs in the US, with full stack developers earning a median annual salary of $130,000 and enjoying remote or hybrid work options. This year, eight tech jobs made it to the top 10 positions on the list, showing a significant increase from the previous year.
Security professionals, programmers, and blockchain IT professionals are currently in high demand, with over 109,000 unfilled IT jobs in the market. However, concerns about a possible recession have led organizations to eliminate some roles, particularly in telecommunications and data center operations.
Despite the positive job growth in December, with 17,600 positions added at tech companies, there has been a decrease in future tech job postings for hiring. Companies are now evaluating their technological requirements and looking at ways to streamline their operations to prepare for a potentially challenging economic climate.
As a result, IT budgets are being reviewed, and median salaries for IT professionals are expected to increase by 3-4% in 2023, lower than originally forecasted. Janco has revised its growth forecast for the IT job market to just over 160,000 new jobs in 2023, reflecting a more cautious approach in light of economic uncertainties. Tech hiring in December 2022 saw a decline for the second consecutive month, with a total of more than 246,000 hires compared to 270,000 in November of the same year. However, recent layoff announcements by technology companies may not yet be reflected in government reports, according to a CompTIA spokesperson.
Despite this, the IT industry is expected to lead all others in hirings in the first quarter of 2023, as per a new report from ManpowerGroup. While there may be a 6% decrease in tech hiring compared to the previous quarter and a 14% decrease compared to Q1 2022, the overall hiring across industries is projected to increase by 23%.
Employers in 39 out of 41 countries and territories surveyed anticipate a positive hiring outlook for the first quarter. The IT industry shows the most optimistic outlook with a projected 35% increase in hiring, followed by Financials & Real Estate at 28% and Energy & Utilities at 26%.
Geographically, North American organizations expect a 31% increase in hiring, with US organizations anticipating a 29% increase and Canadian organizations expecting a 34% increase. Large organizations are more optimistic about hiring than small businesses, with outlooks of 29% and 13%, respectively.
Despite the strong desire to hire, the tech industry faces a shortage of talent, with 76% of IT employers reporting difficulty finding the necessary skills, both technical and soft. This talent shortage has led to a longer lead time for filling open IT positions, which is currently several months.
To address these challenges, organizations have started removing college degree requirements from job postings and implementing apprenticeship programs to train new candidates. However, hiring mistakes in the IT industry are seen as more critical due to the limited availability of skilled professionals.
Looking ahead, the IT job market is expected to continue growing, albeit at a slower pace, as companies focus on improving productivity. Layoffs may continue as organizations seek to streamline their operations and enhance efficiency.
The IT job market continues to show a high demand for programmers, blockchain processing, and security professionals, with over 200,000 unfilled positions. According to Janco’s Mid Year 2022 IT Salary Survey, salaries for existing IT staff and middle managers increased by almost 3%, while new hires received 5% to 6% more than existing staff.
November saw significant hiring in the technology sector, particularly in IT services and custom software development, data processing, hosting, other information services, and computer and electronic products manufacturing. Despite a slight decrease in future tech job postings, opportunities in emerging technologies like artificial intelligence remain strong.
While major tech hubs continue to attract job postings, smaller markets like Topeka, Virginia Beach, Worcester, and Riverside are also seeing growth in tech employment opportunities. The professional, scientific, and technical services sector leads in tech job postings, followed by finance, insurance, and manufacturing.
CompTIA’s analysis reveals that 30% of tech job postings are for positions in emerging technologies or roles requiring emerging tech skills. Corporate executives are facing challenges from inflation and the economic downturn, leading to cautious hiring practices. Starting salaries for IT professionals are expected to increase by 6% to 7% in 2023.
In October 2022, tech firms hired between 15,300 and 20,700 workers, marking two years of industry growth. Despite concerns about a slowing economy, tech hiring activity remains steady. Supply chain issues are affecting the economy, but improvements could alleviate recessionary pressures on tech companies.
Overall, the tech industry continues to show resilience, with tech job postings increasing in October after a five-month decline. Tech manufacturing employment is up 43% compared to the previous year. While the tech industry unemployment rate rose slightly, it remains below the overall US unemployment rate.
Looking ahead, opportunities for IT professionals are expected to remain positive, with a focus on improving productivity and hiring coders and developers. The highest demand in IT will be for programmers, blockchain processing, and security professionals, with hiring limited to approved and unfilled positions.
Overall, the tech industry shows signs of growth and resilience, with opportunities for IT professionals expected to remain strong in the coming year.
During discussions with multiple Chief Information Officers (CIOs), it was noted that the starting pay rates for new hires were previously in the range of 8% to 10%. However, this is no longer the case, as highlighted by Janulaitis. The disparity in pay between veteran IT workers and new hires has become a point of contention, leading to potential issues with worker motivation, according to Sinem Buber, lead economist at ZipRecruiter.
When new employees are brought on board, they often receive pay and benefits that are equal to or even better than those of veteran employees. Despite companies increasing wages, the raises are often implemented across the board, without considering seniority.
This disconnect between hard work and pay raises has broken the traditional link, as pointed out by Buber. The situation has led to concerns regarding worker motivation and fairness in compensation.
Remote work continues to be a growing trend, with a significant increase in job postings for tech positions that offer remote work or work-from-home options. Major tech hubs such as Boston, New York City, San Francisco, and San Jose have seen substantial month-over-month increases in tech job postings. The top industries for tech job postings include professional, scientific, and technical services, finance and insurance, and manufacturing.
According to the latest analysis by IT consultancy Janco Associates, the IT job market has shown consistent growth over the past year, with over 202,800 new jobs added. However, CIOs and CFOs are beginning to slow down the rate at which they are creating new IT jobs due to concerns about inflation and a potential recession.
Tech firms in the U.S. have continued to add workers for the 22nd consecutive month, with an estimated 84,000 new tech workers hired in September alone. Job postings for new hires were slightly down from the previous month but still totaled over 300,000. Positions in software development, engineering, IT support, project management, and network engineering were in high demand.
The data from Hired indicates a preference among job seekers for remote-only roles, with a significant increase in the number of candidates seeking remote work options. IT salaries in the U.S. and Canada have seen significant growth throughout the year, with mid-level candidates experiencing the biggest jump in salaries.
Overall, the tech industry continues to show stability in hiring, with consistent positive growth in employment. Despite economic fluctuations and occasional layoffs, aggregate tech hiring remains strong, according to industry analysts. Janco’s latest report, released on Friday, indicates that the trend of increasing unemployment rates for tech occupations is expected to continue. The unemployment rate for tech occupations rose to 2.3% in August from 1.7% in July, with two main reasons cited for this increase. Firstly, the overall US unemployment rate also increased during this time period, and secondly, some large tech firms announced layoffs.
According to CompTIA, the increase in tech workers quitting their jobs can also be attributed to a rebound in consumer and worker confidence. This trend, known as the ‘Great Resignation,’ has been ongoing since last year and reflects a deep dissatisfaction among workers with their employment situations. The number of workers quitting their jobs has remained consistently above 4 million every month since June 2021.
In August, overall employer job postings for tech positions decreased, with a significant portion of these postings being for positions in emerging technologies such as artificial intelligence, machine learning, and IoT. The report also highlighted the increase in remote work options for tech job postings, with a 56% increase in postings that specify remote work as an option compared to last year.
Despite the increase in hiring, the number of job openings has dropped, indicating a potential slowdown in the pace of new job vacancies. Janco Associates reported that some companies have stopped hiring and begun laying off employees due to fears of an impending downturn or recession. The IT job market remains tight, with an average of 200,000 IT professional jobs unfilled due to a lack of qualified candidates.
New IT hires are receiving salaries that are 5% to 6% above pay for existing positions, and in some cases as much as 10% higher. This salary disparity has led to dissatisfaction and an increase in attrition rate among existing employees. The challenge for CIOs will be to balance existing budgets while providing salary increases to address inflation and commuting costs, as well as meeting the enterprise’s technology and bottom line objectives.
Overall, the US economy added 315,000 jobs in August, with professional and business services adding 68,000 jobs. Within this industry, computer systems design and related services, management and technical consulting services, and scientific research and development services all saw job growth. Despite the cautious outlook of CIOs and CFOs, the IT job market remains dynamic and competitive, with ongoing challenges in finding qualified candidates to fill open positions. In the event of a major recession, many companies may opt not to fill new open positions, providing a buffer to maintain a positive trajectory for hiring IT professionals, according to experts.
As of August 2022, despite significant layoffs at prominent companies, the tech sector has continued to outperform others in terms of low unemployment rates. A recent report from CompTIA, a nonprofit association for the IT industry and workforce, revealed that tech occupations across all industries saw an estimated increase of 239,000 positions in July. Furthermore, the tech industry experienced a net gain of 12,700 workers, marking the 20th consecutive month of growth. Year-over-year, the tech sector has added 143,700 jobs, representing a 55% increase. The unemployment rate for tech jobs in July stood at just 1.7%, significantly lower than the overall US unemployment rate of 3.5%.
Employer job postings for tech positions reached nearly 484,000 in July, slightly down from the previous month but still at a near record level. Throughout the first seven months of 2022, US companies posted approximately 3.1 million job openings for tech positions, a 49% increase compared to the previous year.
Despite economic uncertainties, the tech job market has consistently performed well, with employers seizing opportunities to hire talented individuals. The ongoing trend known as the Great Resignation has seen over 4 million people quitting their jobs each month since June 2021, reflecting a widespread dissatisfaction among workers with their employment situations. Factors contributing to this trend include dissatisfaction with how employers handled the pandemic, low pay or lack of benefits, and a lack of work-life balance.
Within the tech sector, certain occupation categories experienced job growth in July, with other information services, data processing, hosting, and related services, and computer and electronic products manufacturing leading the way. Employers are increasingly focusing on skills, experience, and personality traits rather than college degrees when filling job openings, opening up tech roles to a more diverse pool of candidates.
Software developers, engineers, IT support specialists, project managers, and network engineers are among the most in-demand positions in the tech industry. With a shortage of talent, many companies are adopting non-traditional hiring approaches such as coding bootcamps and focusing on emerging technologies to meet their workforce needs.
In July 2022, a report indicated a decline in job openings for entry-level tech workers, attributed to growing concerns of a recession among C-level executives. Strategies being implemented by organizations include limiting contract extensions, managing full-time employee headcounts, and not replacing departing employees without critical skills or operational knowledge.
Overall, the tech job market has shown resilience in the face of economic challenges, continuing to offer opportunities for skilled professionals in the industry. The latest data from the Bureau of Labor Statistics (BLS) for June continues to support the findings of a potential downturn in the job market. Janco’s report highlighted that several organizations have already begun laying off employees. In May, companies such as Netflix, PayPal, Getir, Klarna, Bolt, and Carvana implemented layoffs. Additionally, Coinbase announced plans to cut 1,100 jobs, representing 18% of its workforce worldwide. Microsoft has also slowed down its hiring efforts to better align its resources, while Meta (Facebook) and Twitter have frozen hiring in certain departments.
According to Gartner research, only 4% of US companies have initiated layoffs, with 7% freezing hiring and 15% slowing down hiring. Despite this, the IT sector continues to see robust demand for experienced professionals, particularly in security-related roles and in areas like blockchain and e-commerce. However, entry-level candidates are facing challenges in finding new opportunities.
The number of open jobs in the US decreased to 11.3 million in May from 11.7 million in April, as per the BLS’s Job Openings and Labor Turnover Survey (JOLTS) report. Nevertheless, the US added 390,000 jobs in May, keeping the unemployment rate steady at 3.6%. There were nearly two job openings for every unemployed American, and the number of workers quitting their jobs remained relatively stable.
Despite concerns about inflation and a possible downturn, preliminary budgets for 2023 do not reflect such risks. CIOs and CFOs are strategizing on how to respond if a downturn occurs.
Janco’s biannual salary survey released in July revealed that IT salaries have been on the rise in 2022. Median salaries for IT professionals in large enterprises exceeded $100,000 for the first time. Midsized companies offered the most significant salary increases, averaging over 4% for IT middle managers and staff. IT executives saw an average salary increase of 3.04% this year.
Tech job postings continue to rise, with more than 190,000 new IT positions expected to be created in 2022. The tech job market in the US now has over 3.85 million positions, with approximately 130,000 remaining unfilled. Top tech roles in terms of hiring and pay include software developers, IT project managers, IT support specialists, systems engineers, and network architects.
Cloud-focused tech workers have seen substantial salary increases over the past year, with an average yearly salary of $182,000. However, there remains a gender pay gap, as women’s salaries in the tech sector are 7% lower than men’s. The tech industry is experiencing a great reshuffle, with many workers changing employers for better compensation and work-life balance.
Employers are urged to rethink their recruitment and retention strategies in the face of intense competition for tech talent. Tech companies are expanding their payrolls, with over 75,000 new workers added in the first four months of 2022. The tight labor market is pushing employers to offer competitive pay, benefits, and flexibility to attract and retain top tech talent. The unemployment rate for tech occupations remains remarkably low compared to the overall national unemployment rate of 3.6%, according to recent data. The number of jobs created for IT professionals continues to grow, with over 20,000 new IT positions added each month over the past year. However, concerns about inflation and high energy costs are leading to worries about a potential economic slowdown later in the year and a possible recession in 2023.
While the growth in IT job creation has slowed slightly, with 17,000 new IT jobs added in May, the trend is expected to continue at a rate of 13,000 to 14,000 new jobs per month for the remainder of the year. By the end of 2022, it is forecasted that 191,000 new IT jobs will be added, bringing the total number of unfilled IT positions in the US to over 3.9 million.
Despite the positive outlook for the IT job market, some analysts predict a potential downturn that could result in hiring freezes and a decrease in job growth. The IT job market has already grown by 93,400 jobs in 2022, 43,000 more than the same period in 2021. However, recent events such as increased energy costs and high inflation could impact future growth.
Positions for software developers and engineers accounted for nearly a third of all employer tech job postings in May, with IT project managers, IT support specialists, systems engineers, architects, and network engineers also experiencing increased hiring. One-third of all job postings were for positions requiring emerging tech skills.
The hottest hiring trends were seen in industries such as scientific and technical services, finance and insurance, manufacturing, information, retail trade, healthcare, social assistance, public administration, and educational services. The search for tech talent was widespread across geographies, with metro areas like New York City, Dallas, Los Angeles, and Washington recording high numbers of tech job postings.
Hiring in the IT services and custom software development category led the tech sector job growth in May, while jobs in telecommunications declined. Despite some challenges, the IT job market is expected to remain positive, though not as broad in scope as in previous years. CIOs are still looking to hire more staff and expand technologies, but concerns about energy costs and inflation may impact growth. In December 2021, Janco reported that there were 3.72 million IT positions in the US. The CEO of Janco, M. Victor Janulaitis, stated that the IT job market and opportunities for IT professionals will continue to be positive, but not as broad as in the previous quarter. CIOs are still looking to hire more staff and expand technologies, particularly in blockchain processing and security applications. However, recent events such as increased energy costs and high inflation may impact the growth of the IT job market.
According to the Bureau of Labor Statistics (BLS), employment in computer and information technology occupations is projected to grow by 13% from 2020 to 2030, faster than the average for all occupations. This growth is expected to add about 667,600 new jobs, driven by the increasing emphasis on cloud computing, big data collection and storage, and information security.
The median annual wage for computer and information technology occupations was $94,729 in January 2021, higher than the median annual wage for all occupations. By January 2022, the median wage for IT positions had increased to $96,667, a 2.05% increase. New IT hires in the last quarter of 2021 were paid 5% to 6% more than existing staff.
CIOs are offering competitive compensation packages and flexible work options to attract and retain IT professionals. The median salary for IT professionals is expected to grow to between $96,000 and $97,000. There has been significant growth in the IT job market over the past year, with nearly 197,000 more IT jobs than the previous year.
Despite the positive outlook for the IT job market, there are challenges in finding qualified candidates for new technologies. Shutdowns during the pandemic resulted in fewer computer science candidates graduating from universities and trade schools, leading to a shortage of individuals with the necessary skills and training. CIOs are struggling to fill open positions in new technologies as a result. Attrition rates are increasing in many IT organizations, as the US IT job market experiences growth and talent shortages. Despite the challenges posed by the delta variant and the ongoing pandemic recovery, the IT industry added 25,400 new jobs in August, following increases of 18,500 in June and 9,900 in July. This growth marks 15 consecutive months of job creation, with an average of 13,000 new IT positions each month in 2021.
The demand for IT professionals in the US continues to exceed the supply of qualified candidates, especially in roles such as web developers, cybersecurity experts, and compliance professionals. This shortage has led businesses to focus on retaining their existing IT staff, as well as increasing salaries to attract and retain top talent. In fact, US IT salaries have been trending upwards in 2021.
Despite the challenges of the pandemic, Janco Associates predicts that 2021 will see greater IT job growth than any previous year, with an estimated 189,000 new positions created by the end of the year. This growth is expected to surpass the job losses experienced in 2020, as the industry continues to rebound.
The CompTIA industry association also reported slower hiring growth in the US tech sector in October, with 8,300 new jobs added compared to September’s 18,700. However, the tech sector’s job numbers remain above their pre-pandemic peak, reaching 4.81 million positions in October 2021.
Overall, the tech sector continues to face a talent shortage, with an estimated unemployment rate of 2.1% in October. This is within range of the sector’s lows in 2018-19, indicating a competitive job market for IT professionals. As businesses continue to navigate the challenges of the pandemic and the evolving IT landscape, the demand for skilled IT professionals is expected to remain high. Businesses are facing a talent shortage in the IT industry, with many struggling to fill positions for web developers, cybersecurity experts, and compliance professionals, according to Janco CEO M. Victor Janulaitis. This shortage has led to increased pressure on businesses to raise salaries, with US IT salaries already trending upwards in 2021.
Janco predicts that 2021 will see significant growth in IT job opportunities, with an estimated 132,000 to 152,000 new positions being created. This would mark the highest level of job growth in the IT industry since 2015. In comparison, in 2018, 104,600 new IT positions were added, while 2019 saw an increase of 90,200 positions. However, in 2020, the industry experienced a loss of 33,200 positions.
Currently, there are approximately 3.7 million IT professional jobs in the US, according to Janco’s estimates. The monthly tech jobs report released by the CompTIA industry association also shows a surge in hiring, with 26,800 new US tech sector jobs added in August. This marks an increase from July and June, with the sector’s job numbers surpassing its pre-pandemic peak in March 2020.
CompTIA calculates the estimated unemployment rate for the tech sector at 1.5% in August, down from 2.2% in June. This is approaching the low levels seen in 2018-2019 when the unemployment rate ranged from 1.2% to 2.4%. In comparison, the national unemployment rate in August was 5.2%, according to the Bureau of Labor Statistics.
The US IT industry has shown strong job growth throughout 2021, with 69,000 IT staffers hired through June, according to revised figures from the BLS. This represents an increase from previous reports, with IT salaries also starting to increase as organizations struggle to fill positions. IT execs in large enterprises are seeing the largest salary boosts, while IT staffers are experiencing smaller increases in comparison.
During the pandemic in spring 2020, over 100,000 IT jobs were lost, but two-thirds of those positions were recovered as the year progressed. As the IT industry continues to rebound, businesses are facing challenges in finding qualified candidates to fill key roles, leading to an increase in salaries and a focus on IT staff retention. In 2020, the US IT job market experienced a decrease of 33,200 jobs compared to 2019. However, with an estimated 69,000 job gains in 2021 so far, the US IT job market at the end of June is at a surplus of 16,700 jobs compared to the 2020 peak in February. This also represents a significant increase of nearly 140,000 jobs compared to the low point in July 2020.
According to Janco estimates, there are more than 3.6 million IT professional jobs in the US. The CompTIA industry association’s monthly tech jobs report indicated that there were 10,500 new tech sector jobs in June, continuing the trend of job gains in 2021. The US tech sector’s job numbers have now essentially matched their peak in March 2020, with 4.76 million positions.
CompTIA calculates both technical and nontechnical positions at tech vendors, with a breakdown of roughly 44% technical and 56% nontechnical positions. On the other hand, Janco focuses on IT positions, including software developers, across all industries.
While the job market in the tech sector remains strong, there have been some reductions in job postings for roles such as software developers and systems analysts in certain cities like Washington, D.C., Atlanta, and San Francisco. However, there has been growth in job postings for positions in San Jose, California, indicating some variability in hiring activities.
The estimated unemployment rate for the tech sector in June was 2.2%, down from 2.4% in May. This rate is approaching the lows seen in 2018-19, ranging from 1.2% to 2.4%.
Overall, the US IT job market has shown resilience and growth in 2021, with significant gains compared to the previous year. Salaries have also started to increase as organizations struggle to fill certain positions, with IT executives in large enterprises seeing the largest salary boosts. The Bureau of Labor Statistics data has been volatile, but the net growth for US IT jobs this year stands at about 47,700 according to Janco’s analysis.
The tech sector continues to recover from the impacts of the pandemic, with job losses in 2020 mostly recovered. The number of tech-related job listings has also increased in 2021, with software developers being the largest pool of openings. Job postings have grown significantly in various sectors, with the Washington, D.C. metro area leading in job postings. The job market in the tech sector remains strong, with continued growth and opportunities for IT professionals. In 2020, the IT job market experienced a significant downturn due to the effects of the COVID-19 pandemic. At its worst, more than 100,000 IT jobs were lost during the spring of 2020, with data center and telecommunications positions being particularly affected. However, as the year progressed, two-thirds of those lost jobs were recovered, but there still ended up being 33,200 fewer IT jobs in the US compared to the previous year.
Fortunately, 2021 has seen a positive trend in the IT job market. So far, 30,400 IT jobs have been added, almost offsetting the losses from 2020. The latest figures from IT employment consultancy Janco Associates suggest that the growth in IT jobs is set to continue throughout the year, with an expected 70,000 more IT jobs becoming available.
In March 2021, the US saw an increase of 6,500 new IT jobs, following similar growth in February and January. This growth is reflective of a broader trend in the tech sector, with both technical and non-technical positions at tech vendors seeing an increase in job opportunities. CompTIA, an industry association, reported that 50,000 IT-related jobs were added in March across all industries, leading to a decrease in the unemployment rate to 1.9%.
Overall, the IT job market is showing signs of recovery and growth, with software developers being in high demand. As the economy continues to recover, the IT sector is expected to play a crucial role in driving job creation and innovation. In February 2021, the US saw an improvement in its unemployment rate, with the IT sector experiencing significant growth. The number of IT-related job listings increased by about 44,300, reaching a total of 277,000. Software developers were in high demand with 88,000 job openings, followed by systems engineers and architects at 22,700. However, Janco CEO M. Victor Janulaitis predicts that coders may face challenges finding jobs in the future as low-code development gains popularity.
Despite the overall struggles of the US economy in January, the IT sector showed promising growth. IT job growth in the past two months totaled 55,000, revised from the previously reported 18,000. However, compared to January 2020, US IT jobs declined by 35,800. The COVID-19 pandemic led to the loss of over 100,000 IT jobs last spring, representing about 3% of the IT workforce.
CompTIA also reported a positive trend in the tech sector, with 19,500 new US tech jobs in January. When including both technical and nontechnical positions at tech vendors, the total number of IT-related jobs added in January was 78,000. The unemployment rate for IT-related jobs decreased to 2.4% in February from 3.0% in December 2020.
Looking ahead, Janco CEO M. Victor Janulaitis expects an 11% growth in US IT jobs over the next decade, with a focus on software developers, quality assurance, and testers. The increasing adoption of remote work and internet-centric applications is expected to drive this growth, particularly in the software development sector.
In January 2021, US IT salaries remained flat for the first time since the dot-com bust of 2000-2002, with an average salary of $94,609 per year. Despite the challenges faced by the IT industry, there was job growth of 391,000 positions in the broad tech sector in December 2020. The year ended with 55,900 fewer IT jobs compared to the previous year, representing a 1.5% decline.
Overall, the tech sector saw a steady increase in job numbers since July 2020, following a sharp drop at the start of the COVID-19 pandemic. IT middle managers experienced salary reductions in 2020, while IT staff and executives saw slight salary increases. The IT consulting and contract positions were heavily impacted in 2020, with hiring growth stalling in the fall due to the resurgence of COVID-19 infections.
Despite the challenges faced by the IT industry, it fared better compared to other sectors heavily impacted by the pandemic. The average US salary increased by 2.6% in 2020, according to the PayScale salary survey. As the IT sector continues to navigate through the uncertainties of the pandemic, there remains optimism for growth and recovery in the coming years. The most recent data from the Bureau of Labor Statistics (BLS) for the first half of 2020 shows an 8.6% average increase in salaries compared to the previous year. This increase is attributed to higher pay for essential workers such as grocery store employees, delivery drivers, and warehouse workers who faced greater risks during the lockdowns. It is important to note that those who lost their jobs are not included in these salary surveys, so the figures reflect the pay of those who are still employed.
According to CompTIA, software developers saw the largest increase in employment with 4,700 hires in December, triple that of the next-largest group, systems analysts with 1,400 hires.
However, the IT job market in the US experienced a reversal in November, shedding 8,300 jobs after a few months of rebound. The net loss of IT jobs for the year stands at 81,100, with the most significant losses seen in data processing, hosting, and related services, as well as computer systems design and related services. The closure of small businesses and consulting firms has contributed to this decline in IT jobs.
Despite some recovery in October and November, the IT job market continues to struggle due to the ongoing pandemic. Uncertainty about the recovery and the resurgence of COVID-19 cases are impacting IT hiring and job security. The closure of businesses, especially small to mid-size ones, has led to a significant loss of IT jobs.
On a positive note, certain IT skills have seen an increase in compensation, such as security, blockchain, and marketing automation. However, other skills like mobile device management and big data analytics have experienced a decline in value.
Overall, the IT and telecommunications job market is expected to continue facing challenges in the coming months as the economy navigates through the uncertainties brought about by the pandemic. While some sectors are seeing improvements, the road to recovery for the IT job market may be slow and gradual. IT jobs. The decrease in job growth is a result of the ongoing economic impact of the pandemic, with many companies holding back on expansion and new initiatives until after the election in November.
Specific sectors, such as the airline industry and cities experiencing civil unrest, are facing significant job losses and deferred hiring. The end of federal COVID-related subsidies for airlines is expected to lead to layoffs across all roles, not just in IT. Cities like Portland, Oregon, which have seen ongoing protests over police killings of Black citizens, are also expected to defer hiring until the unrest subsides.
IT organizations are remaining cautious on spending, with few new initiatives or expansions being funded beyond the initial investments in work-from-home and social distancing technology at the start of the crisis. Janco Associates now estimates that only 25,000 new IT jobs will be created in 2020, with over 163,000 fewer tech jobs than a year ago.
The uncertainty surrounding the pandemic, civil unrest, and economic conditions has led to a decrease in IT job growth projections for the year. Companies are reevaluating their spending on IT products and services, with many adopting work-from-home policies to address social distancing measures.
Overall, the IT job market is facing challenges and uncertainties, with hiring expected to remain limited until late 2020 or early 2021. The impact of the pandemic on the economy, combined with ongoing civil unrest and political uncertainty, is creating a challenging environment for IT professionals and organizations alike. IT jobs have been greatly impacted by the COVID-19 crisis, with companies halting new hires and contract work. According to Janco CEO Victor Janulaitis, IT professionals who find themselves out of work may struggle to find employment or contract opportunities in 2020. The surge in IT contract work seen at the beginning of the crisis to support remote work setups has now disappeared. The tech startup sector is also facing challenges.
Janulaitis does anticipate that IT hiring may begin to pick up towards the end of the year, aligning with expectations for the overall economy. With the current jobless rate at around 14.7% and expected to remain at about 10% in 2021, the future remains uncertain. The lack of a vaccine for COVID-19, limited testing and treatments, and unknown implications of reopening efforts all contribute to a sense of prolonged economic decline.
In this uncertain landscape, IT professionals are facing the same challenges as the wider labor market. The fate of IT positions will depend on how the overall economy recovers from the effects of the pandemic. The Benefits of Regular Exercise
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