As many experts predicted heading into 2024, we are now seeing signs of improvement in the IT jobs market, with job postings increasing since the beginning of the year. Both companies and candidates are moving off the sidelines as they see opportunities to hire or be hired opening up. But change doesn’t happen overnight. Growth will be gradual, because there are so many factors at play within the marketplace.
Still, the outlook is generally positive. Here’s what employers and candidates need to know to make your best technology hiring deals and career decisions in 2024.
What we're seeing nowCompTIA released their State of the Tech Workforce 2024 report in March. It reveals that US tech job growth is expected to outpace overall job growth two-to-one over the next 10 years. At an average annual rate of +6%, that’s about 350,000 more workers needed each year through 2034.
In March, key job market tracking metrics all looked favorable in the tech sector:
- Unemployment is down
- New job postings overall are up
- Remote job postings are up
- Remote Metro area job postings are up
Signs of future growth are welcome news for everyone, but for both HR teams and candidates the hiring landscape looks different these days.
adjusting to meet today's challenges
While the tech market remains more robust than other sectors, the post-pandemic big surge has slowed. IT hiring even saw a dip as a result of huge tech giant layoffs. What we’re seeing now is a more level playing field that will require both candidates and companies to respond accordingly.
Shift toward an employer-driven market
In the recent past, the employment marketplace was heavily candidate-driven. Businesses in all sectors were clamoring for the attention of an all-too-small pool of experienced tech candidates. That is shifting now, to a more balanced environment. As a result, some prospective candidates may be more inclined to hold back, waiting to see how the market progresses. Top talent actively open to move may not attract as many suitors.
Companies prioritizing their needs
The hiring outlook is positive because there is work to be done! Companies have plenty of projects in queue, sidelined due to lack of funding and/or appropriate tech expertise. However, they are bringing these projects online more slowly, one at a time as budget allows, rather than launching several simultaneously. To undertake this work, they will be looking for:
- Full-time technical specialists
- Contractors to fill gaps with specific expertise or tackle short-term projects
- Software improvements, especially CRM, cloud computing, and upgraded cybersecurity
Slower hiring process
Speed to hire remains critical for companies hoping to secure their top-pick candidates, however, that sense of urgency has waned. Companies are spending more time vetting candidates so that they have the “right person” in mind when a full-time or contract position is green-lighted.
More flexible candidates
Where employers had to become more flexible in terms of salaries, benefits, and workplace conditions in order to attract the most desirable talent, candidates are now the ones who must become more flexible if they want to get an offer from a top company. Greater competition among candidates makes it impossible to be overly demanding.
Skills reassessment
Just as employers have had to become more flexible when it comes to job requirements, candidates now must ensure they have what it takes to handle emerging roles. Those who are strong in more traditional tech disciplines should note that willingness to learn these new skills may be essential to making the next career growth move.
At the same time, employers are looking to upgrade their own internal candidate pool. Ger Doyle, senior vice president at ManpowerGroup, says AI is a perfect example. “Demand for AI and machine learning engineers has continued to grow for the last few years, and we’re recognizing that with increased tech demand comes increased training and upskilling,” she notes.
What's hottest in It right now
According to CompTIA, 45% of tech professionals work for tech companies, but 55% are spread throughout all other industries. That’s not surprising, since every size and type of business now requires full digital transformation to function and compete. Also not surprising, as technology evolves most-needed skill sets are changing, too.
Specific roles in highest demand depend to some extent on the business itself. In March, we saw strongest growth in:
- IT support specialist (up 78%)
- Network support specialist (up 66%)
- Web UI/UX designer (up 62%)
- Tech services
- Cloud infrastructure
- Software development
- Cybersecurity
Note that 46% of tech jobs posted did not require a 4-year degree.
Within emerging technologies, AI jobs or those needing AI skills accounted for 41% of postings, as employers look to incorporate these skills across tech positions. (Even recruiters are adopting AI tools to enhance candidate search and communication.) Skilled AI scientists and technicians are needed to put AI to work right now and research new ways to use AI and machine learning in the future.
Overall, we also expect to see rapidly increasing demand for:
- Network engineering
- Data scientists and engineers
- Software QA and testing
- Web development
- Digital interface designers
- CIO and IT Director positions
As the tech hiring landscape continues to take shape in 2024, talent acquisition teams and candidates still need all the help they can get to sidestep the noise and zero in on the most desirable people or positions. Whatever tech skills or roles you’re looking to focus on right now, full-time or contract, our technology experts at Power-4 are here to help.