In July, the technology sector experienced a decline in hiring activity, reflecting broader trends in the national labor market. According to CompTIA’s analysis of U.S. Bureau of Labor Statistics (BLS) data, the tech industry saw a net loss in jobs, although certain areas within the sector showed modest gains.
- Overall Tech Sector Employment Trends
- Job Losses: The tech industry lost an estimated 9,162 jobs in July.
- Sector Breakdown: While tech services and software development sectors added about 4,000 jobs, losses were noted in telecommunications, cloud infrastructure, and related sub-sectors.
- Total Employment: The U.S. tech industry employs approximately 5.6 million workers.
- Broader Labor Market Insights
- Tech Occupation Decline: Overall, tech occupations saw a decrease of 14,000 positions.
- Unemployment Rates: The unemployment rate for tech occupations decreased to 3.2%, compared to a national unemployment rate of 4.3%.
- Hiring Trends and Job Postings
- Active Job Postings: There were over 471,000 active employer job postings for tech positions, with 176,324 new postings added in July.
- Demand for Roles: The highest demand was for software developers and engineers, IT project managers, data analysts and scientists, and tech support specialists. However, job totals for all categories were down for the month.
- Skills-Based Hiring Focus
- Degree Requirements: 46% of active tech job postings did not specify a four-year degree requirement.
- Occupation-Specific Trends:
- Network Support Specialists: 87% of postings did not require a four-year degree.
- IT Support Specialists: 72% of postings did not require a four-year degree.
- Network and Systems Administrators: 52% of postings did not require a four-year degree.
- Database Administrators: 50% of postings did not require a four-year degree.
- Expert Commentary
- Tim Herbert’s Insights: CompTIA’s Chief Research Officer, Tim Herbert, noted that the slowdown in hiring is consistent with expectations. Employers are balancing short-term hiring needs with long-term growth strategies.
The July data from CompTIA illustrates a temporary setback in tech sector hiring, in line with national trends. Despite the decrease in job postings and employment, there remains a strong demand for certain tech roles, and a noticeable shift towards skills-based hiring practices.
