Dive Brief:
- After months of negative signals, the IT employment market recovered in September, according to a review of U.S. Bureau of Labor Statistics data by IT trade group CompTIA published Friday.
- The IT unemployment rate fell to 2.5% last month, down from 3.4% the previous month, marking the largest single-month decrease in four years, according to CompTIA. National unemployment fell slightly to 4.1%.
- Technology employment across the economy grew by 118,000 new positions, and the tech sector added more than 8,500 net new roles last month. Job postings rose for the second consecutive month, with employers looking to fill 516,000 positions.
Dive Insight:
The first three quarters of 2024 have seen technology unemployment tick up to an average of around 3%, up from an average of 2% in the previous two years combined. The September jobs report delivered welcome signs of recovery for the sector, according to CompTIA.
“It was never really a question of if, but when employers were going to resume hiring,” Tim Herbert, chief research officer, CompTIA, said. “A broad mix of companies viewed recent economic developments as the green light to move forward in addressing their tech talent needs.”
IT unemployment fell in September after monthslong spike
National unemployment rates compared to those in IT occupations
In addition to signs of economic stability, another key driver of technology hiring is the enterprise push to deploy AI at scale. Talent categories associated with enabling the technology remain in high demand.
“Right now, AI innovation is driving technology growth,” said Martha Heller, CEO of Heller Search Associates. “And what happens when we innovate in technology? We drive job growth in tech, and we drive job growth across the board.”
Companies geared up to boost tech hiring this year, according to CompTIA projections in May. Economic uncertainty and the unsettled disruption of generative AI paused some plans, reflected in flagging tech job postings and higher IT unemployment this summer.
As talent appetite returns, employers looking to fill in-demand job categories in AI will contend with high salary expectations, as businesses across sectors —including venture capital firms — vie for their expertise.
Leaders must clearly identify the types of talent they need within their IT organizations and adjust recruitment strategies in response to the tightening labor market, Heller said.
“A lot of these skill sets are bleeding edge, and we’re creating them and growing our own,” said Heller. “If you don’t really know what you need, you’re gonna have a hard time with that.”
In addition to aligning positions to company strategy, Heller recommends looking inward for talent that could be upskilled into “AI super users” through internal talent development efforts.
