According to fresh data from the US Bureau of Labor Statistics (BLS) and industry analysts, technology companies hired 25,500 new employees last month, making it one of the highest hiring months thus far this year.
A nonprofit organization for the IT workforce and industry, employment in the tech sector has expanded by 175,700 jobs so far this year, putting it 92% ahead of 2019 and 46% ahead of 2021. (The total includes all personnel, both technical and non-technical, employed by tech firms.)
Tim Herbert, chief research officer of CompTIA, noted that employment stability in the IT industry “continues to be an overarching theme this year.” “Aggregate tech hiring is consistently favorable despite the economic commotion and isolated layoffs.”
There are currently 3.97 million employment for technology professionals in the US, according to the most recent BLS data examined by technology consultant Janco Associates. The number of positions added to the IT job market has increased for 24 consecutive months. According to Janco’s most recent research, published on Friday, this tendency is expected to continue.
The unemployment rate for tech-related jobs increased to 2.3% in August from 1.7% in July. According to Herbert, there are probably two causes for the increase: the fact that the unemployment rate in the US as a whole went up and some major IT companies announced layoffs.
The other factor, according to Herbert, is the recovery in worker and consumer confidence. The fact that tech workers have abandoned their jobs and are looking for new opportunities can also be explained by their increased confidence. With the ‘Great Resignation,’ that was much more apparent early this year and last.
According to BLS data
The number of workers departing their jobs remained above 4 million in August. According to BLS data, almost 4 million people have resigned every month since June 2021, sparking the “Great Resignation” trend. The pattern shows the profound dissatisfaction many people feel about their current working circumstances. Workers were forced to reevaluate their long-term goals, work/life balance, and working conditions as a result of the ongoing global pandemic.
A total of 31% of the jobs posted last month were for positions in emerging technologies like artificial intelligence, machine learning, and the Internet of Things (IoT), or for jobs requiring emerging tech skills like data analytics and automation software. Overall employer job postings for tech positions decreased in August from 372,000 in July to just under 320,000.
Robotic process automation is being implemented in many positions since a lot of the technology companies is now mature enough, according to Herbert. Cybersecurity and broad categories of automation, such as marketing automation and HR automation, are examples of next-generation positions.
The number of technology job ads from January through August 2022 that include remote work or work from home as an option is up 56% from the previous year and up 281% from the year before the pandemic in 2019.
The tendency toward remote employment, which I believe is now in a semi-permanent stage, was the one thing that immediately stood out to me, Hebert said.
The sharp spike in tech job advertising in areas like Wyoming, Montana, and Alaska, according to Herbert, is a sign of the growth in distant work.
According to Janco Associates, the number of job openings decreased even though hiring increased, suggesting that the rate of new job openings may be slowing. The most recent BLS statistics are the basis for its data.
According to Janco’s study
Hiring has slowed somewhat due to concerns about the impending arrival of a serious downturn or recession.
“Compared to the first quarter, CIOs and CFOs are now more cautious. CIOs are unsure of how a downturn may affect their financial position. Most are still hiring, but more slowly “According to the report’s author, Janco CEO M. Victor Janulaitis, “Some companies have ceased hiring and started laying off staff.”
With all of that, Janulaitis noted, “the technology job market remains competitive, with an average of 200,000 IT professional roles going unfilled due to a lack of suitable individuals.” “IT job openings peaked at over 260,000 in April and dropped to 210,000 in July. That should still be a sufficient safety net to keep the employment of technology specialists moving forward.
According to Janulaitis
New technology companies hire typically receive salaries that are 5% to 6% higher than those for comparable positions, and in some cases even 10% higher. The higher starting salary is necessary to entice the top IT candidates, he added. But, according to Janulaitis, the pay gap is causing dissatisfaction among current workers and a rise in the turnover rate.
“The challenge CIOs face will be how to maintain the balance between the existing budget, providing existing employees with salary increases that address inflation and higher commuting costs, and having enough resources available to achieve the enterprise’s technology companies and bottom line objectives,” Janulaitis said.
The BLS does not actively track employment in the tech sector. Since there are tech jobs in most technology companies, technology is not a standalone industry; rather, the agency utilizes the “information sector” as a stand-in for tech employment.
Technology Companies: August 2022
The country’s unemployment rate increased from 3.5% to 3.7%, bringing the total number of unemployed people to 6 million.
Overall, the US economy created 315,000 new jobs in August, above economists’ expectations but far short of the 526,000 positions gained in July, a record-breaking month for employment creation.
According to the BLS, professional and business services added 68,000 jobs in August. The number of jobs in the industry expanded by 14,000 in computer systems design and related fields, 13,000 in management and technical consulting, and 6,000 in scientific research and development. According to the BLS, professional and business services have created 1.1 million new jobs in the last 12 months.
“Compared to the first quarter, CIOs and CFOs are now more cautious. According to a report published last week by Victor Janulaitis, CEO of Janco Associates, CIOs are unsure of how a downturn may affect their bottom line. “The majority are still recruiting, although very slowly. Some businesses have ceased hiring and begun laying off workers.
Despite all of this, the IT job market is still competitive, with an estimated 200,000 IT professional positions going unfilled each year because there aren’t enough suitable applicants, according to Janulaitis. Numerous businesses will decide not to fill those new available positions if there is a severe recession.
That should be sufficient of a cushion to keep the employment of technology professionals moving forward, he said.
Technology Companies: July 2022
A nonprofit organization for the technology companies and workforce, the tech sector continues to dominate all others in low unemployment rates in July, despite a number of sizable layoffs at well-known corporations in recent months.
According to CompTIA’s study of US Bureau of Labor Statistics (BLS) statistics
there were an estimated 239,000 more positions filled in tech-related fields across all industrial sectors last month.
12,700 more people were employed in the tech sector overall, marking the 20th consecutive month of growth. According to CompTIA, the computer industry has added 143,700 jobs so far this year, up 55% from the same period last year. The unemployment rate for IT jobs was just 1.7% (1.3% for women and 1.8% for males), which is about half the 3.5% national unemployment rate.
Tim Herbert, CompTIA’s chief research officer, said despite economic troubles, computer jobs have thrived. “After every layoff notification, other companies hire tech talent, according to the data.” Since June 2021, about 4 million people have quit their occupations per month, contributing to the Great Resignation. The pattern illustrates people’s discontent with their jobs.
Workers can now reevaluate their long-term objectives, work/life balance, and career paths thanks to the ongoing global pandemic.
According to a poll by job listing website Joblist
Some of the top reasons employees leave their jobs this year include dissatisfaction with how their employer treated them during the epidemic (19%), low pay or a lack of benefits (17%), and a lack of work-life balance (13%).
The BLS does not actively track employment in the tech sector. The government uses the “information sector” as a stand-in for tech employment because tech jobs are in practically every industry. Telecom hiring declined by 1,400 compared to IT services and custom software development.
About one in five IT job posts were for roles calling for two years of experience or less. According to CompTIA, 13% of positions required candidates with nine or more years of experience, while around half specified three to five years.
including those in the computer sector, are eliminating the requirement for a college degree for many job openings. Organizations now place more emphasis on the qualifications, background, and personality of job prospects. A wider range of people can now apply for IT employment thanks to the radical move.
Nearly 148,000 job ads last month were for software developers and engineers, which are the most sought-after occupations. IT project managers, systems engineers, network engineers, and tech support specialists have a solid job market. One-third of all job advertisements in July were for positions in emerging technologies or occupations needing expertise in these fields.
With a skills scarcity, software companies and other organizations are employing unconventional hiring approaches including coding bootcamps and low-code training.
Technology Companies: July 2022
A recent study found that the number of entry-level IT job vacancies has considerably decreased over the last three months.
Janco Associates reports that the number of entry-level IT jobs dropped from 29,500 in April to 24,000 in May and 18,400 in June.
According to Janco’s analysis, negative trend among C-level executives that we are or will soon enter a recession.
Nearly all of the 217 CIOs questioned by Janco for its May estimate for future IT hiring said they intended to:
- Restricting the extension of current contracts for consultants and contract employees past the third quarter of the year.
- Through the conclusion of this year, maintaining the headcount of full-time employees at budgeted levels.
- Not replacing departed workers who lack essential IT expertise and/or operational knowledge particular to the firm.
According to Janco’s study
“in our interviews, we have found that Wall Street has halted hiring, and many job offers that were issued to recent IT college grads have had offers that were offered withdrawn back.” The preliminary results from the June BLS monthly data appear to be corroborating such conclusions.
According to Janco’s analysis, several businesses have already begun the hiring and firing process.
- Layoffs were implemented in May by Netflix, PayPal, Getir, Klarna, Bolt, and Carvana.
- 1,100 jobs, or nearly 18% of Coinbase’s global staff, will be eliminated.
- To better coordinate its resources, Microsoft is reducing employment.
- Twitter and Meta (Facebook) have halted hiring in some departments.
- 4% of US corporations have begun laying off workers, 7% have halted hiring, 15% have begun to reduce hiring.
Entry-level jobseekers have a harder time finding work. However, experienced IT workers are still in demand; especially for security-related professions and in-demand technologies like blockchain and e-commerce.
BLS’s May Job Openings and Labor Turnover Survey (JOLTS)
End of May, the US had 11.3 million available jobs, down from 11.7 million in April. The US added 390,000 jobs in May despite a fall in open openings. Unemployment remained at 3.6% and there were approximately two open positions for every unemployed American. At 4.3 million and 2.8%, respectively, the number and rate of workers departing their jobs remained essentially steady.
The preliminary 2023 budgets don’t account for inflation and a possible recession. Janco says most CIOs and CFOs are planning for a slump.
A biennial salary survey is also released by Janco in January and July. The results of the poll, IT salaries were increasing. For the first time, the median pay for all IT professionals working for big businesses exceeded $100,000.
Mid-sized businesses offer the biggest pay rise: the north average is 4% for mid-level managers in tech and workers. This year, salaries for IT executives increased on average by 3.04 percent.
According to IT employment consultancy Janco Associates
There will be a growth in IT employment of more than 190,000 in 2022. According to Janco, there are 3.85 million vacant IT jobs in the US, with 130,000 unfilled.
Software developer/engineer, IT project manager, IT support expert, systems engineer/architect, and network engineer/architect are popular IT jobs.
According to a new compensation survey from O’Reilly Media
Cloud-based IT workers experienced some of the highest income improvements last year, according to an online IT training provider. As more firms adopt cloud tools and services, cloud-focused professionals are in demand.
The average yearly income for cloud workers is $182,000. The impact of the great reshuffle within the tech sector (such as geometry dash) is also evident in the report’s findings, with 20% of respondents reporting they have already changed employers in the past year and 25% planning to find new employment with better pay, raising the question of whether the great reshuffle will continue.
For cloud employees, the average compensation growth over the previous year was 4.3%. Unfortunately, the poll also revealed that the average wage for women is 7% lower than the average salary for men.
Directors and executives earn the most, followed by architects, “leads,” and managers ($196,000, $190,000, and $188,000).
O’Reilly President Laura Baldwin said millions of people departed during the epidemic to rearrange their careers, take steps toward higher-paying employment and work-life balance. If firms don’t offer competitive pay, benefits, remote work flexibility, and on-the-job training, the tech exodus will continue.