May Jobs Report Shocker: Analyst Predictions Blasted as 339k Jobs Added, tech adds 43k jobs.
Another 339k jobs were added and unemployment went up to 3.7% in May's Bureau of Labor Statistics Jobs Report. This came as a major surprise following analyst predictions of only 190k job additions. Professional and business services was the number one contributor with 64k jobs added, tech contributed 43k of those jobs.
The strong payroll growth might well convince the Federal Reserve to keep rising interest rates until they see clearer signs of job and wage growth slowing. But the household data suggest some slowing has been occurring, and we should carefully watch for more in the coming months.
Overall, though, labor demand still substantially exceeds the supply of available workers and the labor market is red-hot!
Key Tech Jobs Report Insights
Tech Jobs Added: +43k in Professional, Technical and Scientific Sciences
Tech Unemployment Rate: 2.8% which is unchanged from April
YOY Gains: +406.8k jobs which averages +34k jobs per month
Future Of Tech Jobs
Despite layoffs at large tech companies, the long-term employment outlook for the tech sector remains strong. Demand for top talent still exceeds supply and overall employment in computer and IT occupations is projected to grow 14.6% from 2021-2031 – much faster than the average for all occupations. When reading headlines about layoffs, it’s important to note, some of those layoffs are in business functions, versus tech roles.
It’s important to look beyond Silicon Valley too. Washington state is reporting strong growth in its tech industry and has the highest concentration of tech workers relative to its overall employment base. Job openings in the state are also projected to grow.
The rise in adoption of digital technologies will play a key role in shaping the future of the tech sector. The World Economic Forum Future of Jobs Report 2023 surveyed 803 companies across 27 industries and 45 economies and found more than 85% of companies said that will be a driver for transformation for them.
Read more: Tech Layoffs Create New Opportunities For IT Professionals
Top Tech Careers
Three of the top 30 fastest growing occupations projected through 2031 are in the Computer and Information Technology group:
- Information Security Analysts - 34.7% expected growth
- Web Developers - 30.3% expected growth
- Software Developers - 26% expected growth
The pandemic only served to make IT workers even more important to the future economy.
“Firms have needed a lot of IT (information technology) talent to reorganize their businesses during the pandemic, and many of the changes will be long-term,” said Mark Regets, a labor economist and a senior fellow at the National Foundation for American Policy.
Strong demand for IT security, software development, and new products and services associated with the Internet of Things (IoT) continue to drive demand for services provided by these occupations.
New Generation of Tech Workers
New graduates are finding jobs and apprenticeship opportunities in the tech sector, as companies invest more in on-site training and education for entry-level workers.
Four in five respondents surveyed for the WEF Future of Jobs Report 2023 expect to implement these strategies in the next five years. A majority of companies surveyed will also prioritize women (79%), youth under 25 (68%) and those with disabilities (51%) as part of their DEI programs.
Recruiting military veterans into the tech sector is also a priority. Two U.S. Senators recently introduced a bill that would make the Veteran Employment Through Technology Education Courses (VET-TEC) pilot program permanent. The Senators say VET-TEC has created opportunities for thousands of veterans to secure jobs in the technology sector by providing tuition support at eligible institutions, housing stipends, and connections with prospective employers.
“The VET-TEC pilot program has helped establish effective pathways for veterans to launch their careers in tech. Our bill builds on its successes by making the program permanent and expanding participants’ eligibility,” said Senator Kevin Cramer (R - ND). “Supporting our veterans includes enhancing the resources and opportunities available to them.”
Read More: 2023 Tech Market Report: Hiring Trends and Future Predictions
Connecting Tech Talent with Top Employers
As the tech industry continues to show major growth, Computer Futures is ready to help connect the best tech talent with the top companies in the U.S. Our consultants are up to date on the latest IT market trends, allowing us to offer truly in-depth knowledge regarding the unique challenges and requirements facing your business or your career. Contact us today to get started.
