236K Jobs Added, Tech is a Major Contributor With 25.7K Job Additions
Another 236K jobs were added and unemployment dropped slightly to 3.5% in March’s Bureau of Labor Statistics Jobs Report. Professional and Business services, the sector that includes professional, scientific and tech services, added 39K jobs with tech contributing 25.7K of those additions.
This month's jobs report is much more in line with analysts' predictions, which could signal a "cooling down" of the labor market with the possibility of the hiring activity losing momentum. However, with the shortage of in-demand skills in tech, our Computer Futures experts are still seeing ongoing demand for hiring. All eyes are now on the Federal Reserve as this is the last monthly employment snapshot before their next meeting in May where a decision of a third quarter-point rate hike will be made.
Key Tech Jobs Report Insights
- Tech Jobs Added: 26K in Professional, Technical and Scientific Sciences
- Tech Unemployment Rate: 2.5% which is down from 2.8% in February
- YOY Gains: 417K jobs added which averages ~35K jobs per month
Strong Demand for Tech/IT Professionals Despite Layoffs
Don’t let news of tech industry layoffs rattle you: Demand for tech and IT professionals remains strong. There is a large number of available jobs in the professional and business services sector with not enough job seekers to fill all those positions. There were 1.8 million job openings in that field in February 2023, according to the U.S. Bureau of Labor Statistics. There were 1.1 million hires.
While Big Tech is cutting back, some businesses that previously struggled to compete for talent are scrambling to hire and seizing the opportunity to focus on tech recruitment. “Over the past few years, while everyone has been looking for tech people, the Big Tech companies have been snapping them up because they’ve got the money and they have strong reputations,” said US-based Anthony Mazzella, Associate Director at Computer Futures. “So, for some companies and some industries this is a bit of a boon really because they can finally get the tech talent they need.”
Now is the time for tech professionals who were recently laid off or are looking for another opportunity to capitalize on previously unconsidered options.
Tech Hiring Predictions
As we begin Q2, we’re taking a look at what could be next for tech hiring:
- We know the talent market is becoming more competitive than ever. Candidates know their worth and will continue to not only seek higher pay, but a range of benefits such as clearly defined career development and flexible working.
- Companies will seek tech candidates with increased specialization and skills as they introduce more automation into their operations.
- Growing emphasis on cybersecurity should lead to new jobs. Computer and information research scientists will be needed to find innovative ways to prevent potential cyberattacks.
- Increased need for computer and information research scientists as demand for software increases. There are about 3,300 openings projected for those roles each year, on average, over the decade.
- Many computer and information research scientist job openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire, according to BLS.
- Rapid growth in data collection by businesses will lead to increased need for data-mining services.
- Even more encouraging, overall employment and information technology occupations are projected to grow 15% from 2021 to 2031 – much faster than the average for all occupations.
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