IT job growth slows despite low unemployment
It’s fascinating—despite record-low unemployment in IT, the hiring market still feels sluggish. What’s going on? During the pandemic, tech hiring surged like a rocket, but now we’re experiencing a bit of gravity pulling it back. Big-name companies—think Alphabet, Microsoft, and Cisco—have significantly trimmed their workforce.
So far in 2024, 168 tech companies have shed over 42,000 jobs. For context, that’s still far fewer than the 262,682 layoffs we saw last year.
Smaller firms have stepped in, grabbing top talent left behind by the giants, but even they seem to be slowing down. Numbers don’t lie: IT unemployment dropped sharply from 6% in August to 3.8% in September. By October, only 98,000 IT professionals were jobless, down from 148,000 a month earlier, according to Janco Associates. Despite these improvements, the job market still shrank by 21,900 roles in the last three months of 2024.
Why the hesitation? It’s a mix of economic cooling and a lack of candidates with the right qualifications. Companies are in a holding pattern, waiting for the market to stabilize before ramping up their hiring engines again.
Skills gaps are impacting IT hiring
Technology is evolving faster than most people can adapt. AI, data analytics, and cloud computing are disrupting industries, and the workforce is scrambling to catch up. Employers are no longer chasing diplomas, but are after people with real-world expertise and the ability to connect technical know-how with business strategy.
The skills gap is clear. Employers want mastery in areas like AI, machine learning (AI/ML), and platforms like AWS, Google Cloud, and Terraform. Programming languages like Rust and Go are red-hot right now. Certifications are the new currency: AWS Cloud, Azure Cloud, Scrum Master, and project management badges carry serious weight.
Pressure is mounting. A whopping 79% of tech professionals say they feel the heat to upskill, largely because of the rise of generative AI (Indeed). A CompTIA report highlights increased demand for specialized knowledge in automation, cybersecurity, and incident response. For IT pros, staying relevant means constant learning, and for companies, it means finding the unicorns who already have these capabilities.
IT job seekers face record low confidence
Confidence among job seekers has hit rock bottom. The ZipRecruiter Q3 2024 Job Seeker Confidence Index paints a bleak picture: 43% of people say their job hunt is going poorly, and 53% claim there are fewer opportunities than just six months ago. Nearly half are struggling to even stay within their field, and 41% believe finding a job has become much harder.
This isn’t just a supply issue; it’s a perception problem. Job seekers feel boxed in by a lack of options and fear layoffs as companies tighten their belts. These feelings create a feedback loop—low confidence leads to hesitation, which slows the hiring process even more.
Upskilling and certifications as key to career growth
In today’s world, you either learn or you’re left behind. Upskilling is part of your survival kit in a fast-moving industry. The good news? Most employers are footing the bill. An impressive 89% of IT professionals are tapping into company-provided training programs, according to Indeed.
Certifications are where the real power lies. AI/ML, cloud computing, and automation certifications open doors faster than traditional degrees. Complementary skills, like leadership development and professional writing, also help candidates stand out. Focus on showing you can lead, communicate, and think strategically.
“The pressure is on, and 79% of tech professionals admit they feel it. But with so many learning resources available, there’s no excuse not to stay ahead.”
Flexible work arrangements increases opportunities
Remote work was a lifeline during the pandemic, but the pendulum is swinging back. While tech professionals still prefer remote roles, being open to hybrid or on-site work can dramatically increase your chances of landing a job.
Interestingly, employees who spend four days a week on-site are more likely to stick with their companies. Why? Collaboration and a sense of community make people feel invested in their teams. Job seekers who embrace this balance will find themselves ahead of the curve in a competitive market.
Practical problem-solving skills are now a must-have
It’s not enough to be technically skilled. You’ve got to be a problem solver who understands the bigger picture. Companies want candidates who can take data from AI, interpret it, and apply it to real-world business scenarios. Certifications and badges are one way to showcase your expertise, but nothing beats hands-on experience.
Compliance is another big focus. New regulations like SEC standards in the U.S., NIS2 in Europe, and SBOM requirements are driving demand for professionals who understand these frameworks. Companies are also looking for leaders in AI integration, automation, and data analytics—fields where demand is outpacing supply.
CompTIA reports that enterprises are hungry for talent who can bridge the gap between technical execution and business strategy. Programming skills in Rust and Go, cloud management expertise, and automation are among the top demands. Master these, and you’ll have hiring managers chasing you.
