June Jobs Report: 209K jobs added, tech contributes +23k
Another 209k jobs were added and unemployment went down to 3.6% in June's Bureau of Labor Statistics Jobs Report. This came as a major surprise following ADPs reporting of 490k jobs added earlier in the week but was much more in line with analyst predictions of 240k job additions. Professional, scientific and technical services was a top contributor with 23k jobs added.
This marks the smallest total increase overall in more than two and a half years, perhaps a sign the labor market is cooling off as rising interest rates gradually weaken the economy. The softer employment report could mollify senior officials at the Federal Reserve, who want a slow in hiring and economic growth to help them bring down high inflation. Yet it might not be enough to forestall a further increase in interest rates. The Fed is widely expected to raise rates later this month as it seeks to restore inflation to pre-pandemic levels of 2% or less. Inflation has been stuck in the 4% to 5% range.
In terms of hiring, while worker shortages have largely ebbed, many industries, specifically tech, are still experiencing historically high numbers of jobs open versus workers to fill the positions. Here's a look at key tech jobs report insights.
Key Tech Jobs Report Insights
Tech Jobs Added: +23k in Professional, Technical and Scientific Sciences
Tech Unemployment Rate: 2.7% which is down from May
YOY Gains: +374.6k jobs which averages +31k jobs per month
Workers Staying Committed To Jobs
Experts say it appears The Great Resignation is over, with more Americans staying in their jobs post-pandemic. Approximately 50 million people quit their jobs over the past couple years and found new positions that better fit their work-life desires.
The overall number of people who quit their jobs in April decreased by 49,000 compared to March, according to the U.S. Bureau of Labor Statistics. Professional and Business services, the sector that includes professional, scientific and tech services, also saw a decrease of 38,000 in the same time period. The quits rate is almost back at pre-pandemic averages. However, there are still significant opportunities in that sector – with 1.7 million job openings in April.
6 Key Tech Growth Areas
There has been an explosion of demand for digital products and services since the beginning of the pandemic. There is a boom in demand for specific technologies, and companies are struggling to find the talent they need. Technologies currently in the spotlight include:
- Cloud Computing – It is expected that 85% of organizations will embrace a cloud-first principle by 2025. By the same year, 95% of new digital workloads are expected to be deployed on cloud-native platforms, up from 30% in 2021.
- Internet of Things (IoT) – The network of physical objects connected to the internet by embedded sensors and software is likely to expand rapidly because of the availability of increasingly inexpensive sensors and enhanced analytics. There are predicted to be 75 billion active IoT devices by 2025.
- Artificial Intelligence, Digital Learning, and Robotics - There is a relentless advance in machine learning, which is unlocking value in areas like drug development. There is also a strong demand for robotic process automation, which is likely to see the market growing to $22 billion by 2025.
- Mobile Telecommunications - The widespread adoption of 5G will see faster infrastructure and technology, enable more complex software, and help drive the growth of the IoT. 5G adoption reached one-third of global smartphone volumes in 2020, indicating there are real opportunities for the technology in the enterprise sector.
- Fintech - Cryptocurrency investors already number 200 million worldwide and are expected to grow rapidly. The currencies are being embraced by countries and states from Brazil to California. Recent legislation allows people in California to pay for government services with cryptocurrency.
Read more: 2023 Tech Market Report: Hiring Trends and Future Predictions
Diversity In Tech Hiring
New programs and initiatives aimed at increasing diversity in the tech workforce are creating opportunities for minority demographics. Black people make up only 5% of the tech workforce, according to the Kapor Center. It also reports only 3% of tech executives and 1% of tech founders are Black. According to a recent survey of 1,000+ African-American adults compiled by Jobs For The Future, more than 6 in 10 not working in digital or IT would consider a career change to work in the sector, however more than half said they did not know where to start.
Blacks In Technology is one organization that provides resources, guidance and networking opportunities for Black people in the industry to increase representation in the tech sector. It also provides connections to software engineering bootcamps for young people interested in tech careers.
Many corporations and organizations are targeting high school students early in order to provide a pipeline to tech employment. Some have partnered with Google to give graduates the education and certifications needed to enter the tech workforce – bypassing traditional college. These organizations recognize that capturing and investing in these young people early can lead to a promising pool of talent.
Custom Solutions For Employers & Talent
Whether you’re a professional looking for a job or a business seeking highly skilled talent, the team at Computer Futures are here for you. By combining our local expertise and specialist market knowledge, we can provide expert recruitment and employment solutions across a range of IT markets. Contact us today to get started.
