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 an estimated 2,489 positions in January, CompTIA’s analysis of 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 in the retail and information sectors.” 1 The change materially affects the sub-sector of tech companies classified under the information sectors which encompasses search and platform services, software, telecommunications, media and more.
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Upon further clarification from the BLS these revisions were applied to the entire historical data series and not just the single month of November. Correcting for this change yields a modest gain of an estimated 2,500 net new jobs in the tech sector for November 2022 versus the mistakenly reported decrease of -151,900 in the prior CompTIA reporting2.
Technology occupations throughout the economy declined by an estimated 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.
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“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.”
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.3 Several major metropolitan markets saw a notable jump in tech job.
The Computing Technology Industry Association (CompTIA) is a leading voice and advocate for the $5 trillion global information technology ecosystem; and the estimated 75 million industry and tech professionals who design, implement, manage, and safeguard the technology that powers the world’s economy. Through education, training, certifications, advocacy, philanthropy, and market research, CompTIA is the hub for unlocking the potential of the tech industry and its workforce.
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