April 11, 2023
According to an analysis of U.S. Bureau of Labor Statistics data by CompTIA, employers across the U.S. economy added 197,000 tech positions in March, indicating a recovery from previous pullbacks. Although the unemployment rate for tech positions remained the same as last month at 2.2%, it remained well below the general unemployment rate of 3.5%.
In March, job postings for tech positions increased to almost 316,000, a rise of 38% from February’s total. Administrative, manufacturing, finance, and insurance companies led the surge for tech job postings. However, tech sector employment decreased by slightly more than 800 positions last month, marking the third consecutive month of losses. In February, tech sector employment decreased by almost 11,200 jobs, as official data started to reflect the impact of layoffs.
Despite a wave of layoffs in recent months in the technology sector due to employers showing more financial prudence given signs of economic trouble, ongoing demand for tech talent across a wide range of industries shows the resilience of the tech labor market. While job cuts in tech have slowed, they have not stopped. According to Layoffs.fyi, layoffs in 2023 have already surpassed last year’s levels, with nearly 168,000 workers laid off at more than 500 tech companies.
IT spending projections are another key health indicator for the technology space, and they suggest that executives will continue to invest in tech capabilities. Gartner projections indicate that global IT spending is set to grow by 5.5% this year. A prior forecast had expected a more conservative growth rate of 2.4%.
According to Tim Herbert, chief research officer at CompTIA, the increase in tech job postings is a notable positive. “While caution is in order given the state of uncertainty, the data suggests segments of employers may be stepping back into the tech talent market,” Herbert said in a release.
The sources for this piece include an article in CIODIVE.
