Tech industry resumes job growth as layoffs spike unemployment
The latest employment data from the US Bureau of Labor Statistics (BLS) suggests that the tech industry is poised for growth, with employers increasingly hiring technology workers and expanding their search for new tech talent. After a slew of layoffs that spiked unemployment rates in recent months, the industry is finally looking up.
In January, the US added 353,000 jobs, according to data published by the BLS. And for tech workers, CompTIA's latest employment data suggests that 2024 is off to a promising start. Tech companies added nearly 18,000 workers last month, the second consecutive month of job growth. The unemployment rate for tech occupations remained at 3.3%, well below the overall national rate. Yet, overall, tech occupations, which span all industries, declined in January.
CompTIA's analysis also revealed that the number of job postings for tech positions increased by 8,000 from February to March, reaching a four-month high. With tech demand stronger than last year at this time and the growth of IT jobs in Q1 2024 exceeding the final three months of 2023, the industry is looking up. The expansive tech workforce will simultaneously experience gains and losses reflecting employer short-term and longer-term staffing needs.
Among the trends identified in CompTIA's report are the expanding use of emerging technologies such as artificial intelligence and hybrid work options. Job postings offering remote or work-from-home opportunities accounted for about 20% of all tech job postings in March, reaching a total of approximately 81,000. Artificial intelligence or jobs requiring AI skills accounted for 41% of postings in the emerging technologies subcategory.
The data also shows a variety of paths to a job in technology, as 46% of all tech jobs postings in March did not require a four-year degree. This percentage was higher for certain job categories, such as IT support specialists (78%), network support specialists (66%), and web UI/UX designers (62%).
With the added job openings, the industry is expected to add nearly 300,000 new jobs this year, compared to just 117,000 in 2023. Top projected occupations include data scientists and data analysts, cybersecurity analysts and engineers, software developers and engineers, software QA and testers, computer and information research scientists, CIOs and IT directors, web developers, and web and digital interface designers.
According to projections from CompTIA's report, 20 states and 14 metropolitan areas will exceed the average growth rate in 2024. Twenty-six metro markets are expected to at least double last year's growth rate, reflecting the diversity of tech hub concentrations across the US.
While unemployment did tick up, February's rate continued the longest stretch of unemployment below 4% in decades. There were 275,000 jobs added to the US market last month, according to the BLS report. The data shows a significant uptick from January's 229,000 jobs added to the workforce, but lower than December's, when 290,000 jobs were added.
Overall, tech companies added jobs in several primary sub-sectors: technology services and software development (+14,500), cloud infrastructure (+2,100), and tech manufacturing (most notably semiconductors) (+1,400). Employers listed more than 392,000 active tech job postings, with nearly 178,000 added last month alone. January's total of active postings was 33,727 more than the December 2023 figure, the largest month-to-month increase in a year.
And for those looking to work from home, hybrid jobs are strongest in the IT (38%) and finance (40%) sectors, according to Experis data. Despite the positive outlook, the industry is still feeling the effects of recent layoffs, with many companies recalibrating their staffing levels. Still, according to Frankiewicz, "while hiring isn't yet 'hot,' it's certainly warmer than pre-pandemic."
And for those workers lucky enough to be in high demand, wages are following suit, remaining steady overall, with month-over-month increases in some sectors, such as IT and business operations. Hybrid job roles are strongest in the IT (38%) and finance (40%) sectors, according to Experis data. Overall, the expansive tech workforce will simultaneously experience gains and losses reflecting employer short-term and longer-term staffing needs.
In summary, while the tech industry is poised for growth, it is still feeling the effects of recent layoffs, with many companies recalibrating their staffing levels. Still, according to Frankiewicz, "while hiring isn't yet 'hot,' it's certainly warmer than pre-pandemic." With the added job openings, the industry is expected to add nearly 300,000 new jobs this year, compared to just 117,000 in 2023. Top projected occupations include data scientists and data analysts, cybersecurity analysts and engineers, software developers and engineers, software QA and testers, computer and information research scientists, CIOs and IT directors, web developers, and web and digital interface designers.
According to projections from