Bureau of Labor Statistics Labor Market Revisions Contribute to Conflicting Signals in Latest Tech Employment Data, CompTIA Analysis Finds

The latest data on tech employment presents a mixed picture, with a decline in current employment and an increase in employer job postings for potential future hiring, according to an analysis by CompTIA, the nonprofit association for the information technology (IT) industry and workforce.

Technology sector companies shed 1,600 positions in January, CompTIA‘s analysis of today’s U.S. Bureau of Labor Statistics #JobsReport reveals. The BLS significantly revised its November data, describing it as a “major revision reflecting content and coding changes.” The change materially affects the sub-sector of tech companies providing search and platform services, while the revisions were a net positive for sub-sectors such as IT services and data.

HR Technology News: JD.com Included in 2023 Bloomberg Gender-Equality Index

Technology occupations throughout the economy declined by 32,000 for the month, representing a fractional reduction of -0.5% of the total. The tech unemployment rate fell to 1.5% in January, an indication many laid off workers were re-hired and absorbed back into the labor market. The tech unemployment rate is also an indication that many of the layoffs occurring at the tech sector level are non-technical workers, such as sales, marketing or related business support positions.

“Despite the unusual backward revision by the BLS and the routine fluctuations in monthly labor market data, much of the big picture tech employment picture remains the same,” said Tim Herbert, chief research officer, CompTIA. “Undoubtedly some companies over-hired and are now scaling back. The low tech unemployment rate and steady hiring activity by employers confirms the long-term demand for tech talent across many sectors of the economy.”

HR Technology News: Pandemic-driven Work Changes are Becoming Permanent as Competition for Talent Continues

Job postings for future tech hiring reversed last month’s dip and increased by 22,408 to 268,898, according to CompTIA analysis of employer job posting data.2 Several major metropolitan markets saw a notable jump in tech job postings from December to January, including Atlanta

HR Technology News: Sinequa’s Workplace Search Arrives to Transforms Employee Experience

[To share your insights with us, please write to sghosh@martechseries.com]