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IT Employment Growth Stalls – Merely 700 Positions Gained in 2023, a Drastic Drop from 267,000 in 2022

TL;DR

  • IT employment experienced a significant slowdown in 2023, adding only 700 jobs compared to the 267,000 jobs in the previous year.
  • The first half of 2023 saw job losses, particularly in technology-driven companies, impacting overall tech hiring across industries.
  • Despite challenges, the fourth quarter showed a positive signal with 21,300 IT jobs added, hinting at potential increased tech hiring in 2024.

For the information-technology sector, the year 2023 witnessed a meager growth of merely 700 jobs, sharply declining from the impressive 267,000 jobs added in 2022. This comes amid heightened interest in artificial intelligence and technologies like ChatGPT. As businesses sought to cut costs and adapt to evolving landscapes, the IT job market faced unexpected challenges, leading to a drastic slowdown in employment growth.

A closer look at the first half of 2023 in the IT Job market

The first half of 2023 proved challenging for the IT job market, with significant job losses, particularly in technology-driven companies that had dominated the hiring scene in the previous year. Victor Janulaitis, CEO of consulting company Janco Associates, highlighted the impact of these losses on overall tech hiring across industries, basing his findings on data from the U.S. Department of Labor. The recovery observed in 2022, fueled by the aftermath of the Covid-19 pandemic, was replaced by a slowdown in 2023.

The IT job growth in 2022, fueled by recovery and increased demand in the wake of the pandemic, was predominantly led by segments such as cybersecurity, AI, and data science. Yet, in 2023, roles managing corporate applications like payroll and human resource systems began to be replaced by cloud software. Entry-level IT job hiring witnessed a decline, attributed to the acceleration of automation in customer service and data center-related roles driven by AI. While entry-level IT worker wages grew modestly by 2%, chief information officers experienced a substantial 14% growth.

Despite the challenges faced in the first three quarters, the fourth quarter of 2023 brought a ray of hope with a net growth of 21,300 IT jobs. This positive signal indicates a potential rebound in tech hiring as the industry looks towards 2024. David Glick, Walmart’s senior vice president of enterprise business services, noted the ease of hiring great talent, absorbing some of the workers laid off from Big Tech firms, particularly software developers.

IT employment trends and challenges in 2024

As the dynamics of the job market become increasingly nuanced, witnessing notable growth in sectors such as healthcare, government, and leisure, the pervasive influence of generative AI, the technological marvel underlying ChatGPT, is anticipated to exert a profound impact on the landscape of tech hiring throughout the year 2024. 

Tim Herbert, the astute Chief Research Officer of CompTIA, keenly observes a discernible shift in the hiring milieu, affording employers a slightly more effortless recruitment experience. Despite the dwindling prospects in telecommunications occupations, there persists an unabated demand for adept professionals in the realms of AI and cloud computing, constituting an impressive 11% of the overall tech job postings.

The terrain of IT employment underwent a notable metamorphosis in the bygone year of 2023, characterized by a deceleration in growth, discernible shifts in occupational trends, and a cautiously optimistic resurgence in the fourth quarter. As the tech industry braces itself for the challenges and opportunities that lie ahead in 2024, the intersection of generative AI’s transformative capabilities and the perennial demand for specialized talents provokes contemplation on the trajectory of tech hiring. 

Will the momentum discerned in the fourth quarter persist unabated, or shall the confluence of tightening budgets and the complex signals emanating from the economic landscape continue to present formidable challenges for Chief Information Officers (CIOs) and IT professionals in the forthcoming year?

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Aamir Sheikh

Amir is a media, marketing and content professional working in the digital industry. A veteran in content production Amir is now an enthusiastic cryptocurrency proponent, analyst and writer.

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