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Dive Brief:
- Unemployment among tech occupations fell to 1.7% in July, according to the CompTIA survey by the U.S. Bureau of Labor Statistics. The number is down one-tenth of a percentage point month-on-month and is close to the all-time low of 1.3% recorded in May 2019.
- Overall, job growth in the economy doubled more than expected, with technology jobs expanding in July and employers across industries adding an estimated 239,000 positions. Last month, the economy lost 17,300 tech jobs.
- Hovering less than half a percentage point above historic lows, the IT unemployment rate was about half the national average, which was 3.5% in July, according to BLS data.
Dive Insight:
Two consecutive fourth-quarter GDP contractions haven’t stopped employers from hiring — especially as they struggle to fill tech jobs amid a shortage.
Although there are some announcements and some of the layoffs [economic] It’s still a very tight job market for tech talent, according to Tim Herbert, chief research officer at ComTIA.
Software developers and engineers topped the list of in-demand tech jobs, with employers looking to fill nearly 148,000 positions in this category in July.
“Because technology is now so embedded in businesses, even when we experience economic downturns, it doesn’t typically translate into a reduction in technology hiring,” Herbert said.
Given the macroeconomic conditions, quite a few of the big names in technology have stopped hiring or laid off workers. Google has announced internally that it will take a two-week sabbatical in July to adjust its hiring strategy. Microsoft has cut openings in certain teams, and Oracle has reportedly begun laying off employees in its customer experience division.
“Headlines about rising layoffs have been in the news regularly in recent weeks, but data from July shows a worrying rate of job losses,” Nick Banker, director of North American Economic Research, said in a blog post Friday. . “About 1% of employed workers moved into unemployment during the month, slightly higher than June’s rate.”
The round of layoffs could signal to the market that companies are paying attention to their bottom lines amid the economic headache, Herbert said. Companies “don’t want to be dominant in announcing that they’re hiring when everyone else is pulling back.”
Addressing company culture and supporting internal training is key for employers looking to retain their workforce.
“Today’s employees want to work for a company whose values align with their own,” Gina Hartigan, Cantata’s chief executive officer, said in an email. “In an industry that is constantly evolving, employees value organizations that keep up with technological advances and provide opportunities for continuing education.”
