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OpenAI has for more than a year had a tool to watermark text generated by the company’s AI assistant ChatGPT, according to information provided to The Wall Street Journal via The Verge. (OpenAI itself has confirmed that it’s been working on such a tool in a blog post.)

According to Journal, the watermarking should not affect the quality of the content ChatGPT creates — but OpenAI has chosen not to start using the tool because internally there are divided opinions about it.

The generative AI (genAI) ​​company reportedly commissioned a survey that showed four times as many people are disposed to using tools that can identify AI content as opposed to them. At the same time, another survey found that 30% of ChatGPT users would use the service less if it contained watermarked content.

One of the most enticing uses for generative AI is to help you write. Anyone can get writing help from Microsoft’s Copilot genAI tool via the free Copilot web or mobile app. But Copilot becomes especially useful when it’s integrated with various Microsoft 365 apps.

As you compose, edit, or view a document in Word, for example, you can summon Copilot to assist you in several ways: It can generate rough drafts, polish or change the tone of your writing, and summarize long passages of text. Copilot can also help you compose or summarize emails in Outlook and help you rewrite or summarize notes in OneNote.

This guide will get you started on the basics of using Copilot for your writing in Microsoft 365 apps. But you’ll have to pay for a Copilot subscription in addition to your current Microsoft 365 plan.

In this article:

• How to use Copilot in Microsoft 365 apps
• Generate a rough draft in Word or Outlook
• Get email draft coaching in Outlook
• Rewrite text in Word or OneNote
• Summarize long documents, notes, emails, or threads

How to use Copilot in Microsoft 365 apps

Individuals with a free Microsoft account or a Microsoft 365 Family or Personal subscription can purchase a Copilot Pro subscription for $20 per month. (A one-month free trial is available.) Each person who wants to use Copilot Pro must have their own subscription.

If you have a free Microsoft account, the Copilot Pro subscription lets you use Copilot in certain Microsoft 365 apps on the web only. If you have a paid Microsoft 365 plan, you’ll be able to use Copilot in the desktop and mobile versions of those M365 apps as well. Once you’ve signed up, you may need to refresh your Microsoft 365 license before Copilot becomes available in the apps.

If you’re on a Microsoft 365 business plan (such as through a company you work for), a Copilot for Microsoft 365 subscription costs $30 per user per month. This must be paid annually at $360 up front, and there’s no trial period. (Apparently, Microsoft presumes that your company will foot this hefty tab.) A Copilot Pro subscription cannot be used with a Microsoft 365 business account.

This guide goes over how to use Copilot in Word, Outlook, and OneNote to help you compose and revise text. I’ll demonstrate using Copilot Pro with an individual Microsoft 365 account, but the descriptions also apply to Copilot for Microsoft 365 used with a Microsoft 365 business plan. Most of the steps and user interfaces are alike. I’ll also note additional features that are available under the business versions of Copilot and Microsoft 365.

Note: Microsoft 365 apps aren’t completely consistent on different platforms — for instance, a menu choice in Word for Windows might be named differently from the same option in the web version of Word. In these cases, I’ve tried to include both names. You may still find instances where a button or menu item doesn’t match, but it’s generally obvious what to do.

Generate a rough draft in Word or Outlook

Copilot can help you compose text drafts in Word and Outlook. In Outlook, you use Copilot through a panel that appears over the main area of the app. In Word, you can use Copilot from a similar panel that overlays the document, or from a sidebar that opens along the right of the page.

Using the “Draft with Copilot” panel in Word and Outlook

Word: Start with a new, blank document or open an existing document that you’d like to add more writing to. (Set the cursor where you want the generated text to be inserted.) Click the Copilot icon that appears in the left margin.

To get started with Copilot in Word, click the Copilot icon in the left margin or press Alt-Ion your keyboard.

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To get started with Copilot in Word, click the Copilot icon in the left margin or press Alt-Ion your keyboard.

Howard Wen / IDG

To get started with Copilot in Word, click the Copilot icon in the left margin or press Alt-Ion your keyboard.

Howard Wen / IDG

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Howard Wen / IDG

The “Draft with Copilot” panel appears over the document. In the text entry box, you’ll type in a prompt that describes the text you want Copilot to write. (More on that in a moment.)

Type your prompt into the “Draft with Copilot” panel.

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Type your prompt into the “Draft with Copilot” panel.

Howard Wen / IDG

Type your prompt into the “Draft with Copilot” panel.

Howard Wen / IDG

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Howard Wen / IDG

In the desktop version of Word for Windows, there’s a Reference a file button at the bottom of the Draft with Copilot panel. Clicking this may let you select a document in your OneDrive or SharePoint for Copilot to base its generated text on, including content, writing style, and formatting. (Business users can select up to three files for Copilot to reference.) You can also type your prompt followed by a / (forward slash) and a document’s file name to trigger Copilot to reference it.

But know that this function may not work for you – it apparently depends on whether Copilot itself thinks you have documents that it can reference for you.

Outlook: With the cursor in the message body of a new email, click the Copilot button on the Home tab of the ribbon toolbar. On the drop-down menu that opens, click Draft with Copilot.

To get started with Copilot in Outlook, click the Copilot button in the ribbon toolbar.

Howard Wen / IDG

On the “Draft with Copilot” panel that opens, type your prompt inside the text entry box. The panel is similar to what you see in Word, but with an additional option: a button with two sliders on it that may say Adjust or Generate options, depending on your version of Outlook. When you click it, a drop-down menu opens that lists options for tone of voice and word length for the generated email draft.

In Outlook, you can designate tone of voice and general length for Copilot’s output.

Howard Wen / IDG

Crafting your prompts

Prompts are sentences that you enter to instruct Copilot (or other AI assistants) how to compose the text you want created. Your prompt should minimally include the subject and a few specifics about the writing you want it to generate.

To get started, describe the kind of text you want Copilot to generate and add a detail or two about it. These prompts can be simple or a little more complex. For example:

• “Create a brief business pitch for a new vegan restaurant that will be located in downtown Atlanta, Georgia.”
• “Write an opening paragraph describing my interest in a technical support job opening at Microsoft.”
• “Write a few sentences that inquire if there are any job openings in technical support at Microsoft.”
• “Compose a polite follow-up with the recipient about a video call we had last week.”

The more specifics you include in your prompt, the more likely you are to get good results. For instance, if you have notes that contain specific data points that you want to include in the generated text, copy and paste those notes into your prompt. If you have an outline for the topics you want to cover in the draft, paste that in as well.

But frankly, there are no hard rules about writing prompts — just use your imagination and see how Copilot responds. Expect that the AI may not generate results that you like (if it generates any at all). Keep experimenting with the descriptions in your prompts until you coax Copilot to produce a useful response.

Once you’ve entered your prompt (and optionally selected a tone and length in Outlook), click the Generate button or press Enter on your keyboard and wait for Copilot to work its AI magic.

The results are in – actions you can take

When Copilot has generated a draft, it appears in the document or email with a toolbar below it.

In Word, use the toolbar below the generated draft to keep, retry, discard, or refine the text.

Howard Wen / IDG

You can use the toolbar to perform the following functions:

• Click the Keep it button to keep the newly minted words in your document or email. You can then edit the generated text in the doc or email as you see fit.
• Click the Regenerate button (two circular arrows) if you’re not satisfied with the result and want Copilot to generate a whole new one.
• Click the Discard button (a trashcan) to discard the result.
• Refine the result by typing more prompts in the text entry box (e.g., “add more details,” “make this sound more professional,” or “make it shorter”) and clicking the arrow. Copilot will generate an updated writing result using your additional commands and descriptions.
• Optionally click the thumbs up or down icon in the upper-right corner of the toolbar to rate the quality of the result that Copilot generated. Presumably, this helps train the Copilot to produce better results in the future.

In Outlook, the buttons and text entry box are arranged differently in the toolbar, but they perform the same actions on an email draft that Copilot generates for you. You can also use the Adjust or Generate options button to change the tone or length.

The toolbar that appears with generated text in Outlook offers the same functions as in Word.

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The toolbar that appears with generated text in Outlook offers the same functions as in Word.

Howard Wen / IDG

The toolbar that appears with generated text in Outlook offers the same functions as in Word.

Howard Wen / IDG

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Howard Wen / IDG

Important: All AI-generated content can contain errors or outright fabrications, known as hallucinations. When you insert text that Copilot has generated into a document or email, be sure to fact-check it carefully.

AI-generated content also tends to be generic and a bit boring, so you’ll likely want to edit it to inject your own personality or writing style.

Using the Copilot sidebar in Word

On the Home tab in Word’s ribbon toolbar, click the Copilot button. This will open the Copilot sidebar to the right. At the bottom of the sidebar, type your prompt inside the text entry box and click the arrow button (or press Enter). Copilot will generate text and display it inside the sidebar.

Generated text in the Copilot sidebar in Word.

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Generated text in the Copilot sidebar in Word.

Howard Wen / IDG

Generated text in the Copilot sidebar in Word.

Howard Wen / IDG

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Howard Wen / IDG

Click the Copy button to copy the writing to your PC clipboard. You can then paste it into a document, note, email, or elsewhere.

Unlike the Draft with Copilot panel, the Copilot sidebar doesn’t include tools for refining text it generates from scratch. What’s more, Copilot’s behavior in the sidebar feels a little unreliable, producing inconsistent results. The sidebar seems better used for summarizing your document or asking the AI questions about it than for generating text.

Get coaching on an email draft in Outlook

If you’d rather compose emails yourself but would like some suggestions for improvement, there’s a nifty Copilot feature in Outlook called email coaching. After you’ve written your email draft, click the Copilot button on the Home tab in the ribbon toolbar. On the menu that appears, choose Coaching by Copilot.

Copilot will review your draft and offer specific suggestions for improving it in terms of tone, reader engagement, and clarity.

Copilot can critique your email draft and offer suggestions for improvement.

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Copilot can critique your email draft and offer suggestions for improvement.

Howard Wen / IDG

Copilot can critique your email draft and offer suggestions for improvement.

Howard Wen / IDG

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Howard Wen / IDG

Rewrite text in Word or OneNote

You can rewrite passages of text in a Word document or a OneNote page. This can be useful if you feel that your writing could use a little more detail, or if a paragraph sounds too wordy.

In Word, you can use either the Copilot panel or sidebar (as described earlier in this guide) to command Copilot to rewrite. In OneNote, you can use the sidebar or a right-click menu option.

Note: As of this writing, Copilot is available for OneNote only in the Windows desktop app.

Using the “Rewrite with Copilot” panel in Word

Highlight the passage of text that you want Copilot to rewrite. The Copilot button will appear in the margin to the left of the text that you highlighted. Click it, and on the menu that opens, select Auto rewrite or Rewrite with Copilot. Alternatively, you can right-click on your highlighted text, and on the menu that opens, select Copilot > Rewrite with Copilot.

In Word, select the text you want to rewrite, click the Copilot icon in the left margin, and select Auto rewrite.

Howard Wen / IDG

Either way, the “Rewrite with Copilot” panel appears below your highlighted text. Copilot will generate and present up to three rewritten versions in the panel. Click the arrows at the top of the panel to cycle through the rewrites.

Reviewing and refining Copilot’s suggested rewrite for the highlighted text.

Howard Wen / IDG

Below the rewritten text, you can click the following buttons:

• Replace will replace the original text that you highlighted with the currently visible rewritten version.
• Insert below will insert the rewritten version below the original text you highlighted (so that you can decide later if you want to keep it).
• The Regenerate button (two circular arrows) will generate another result.
• In the Word desktop app for Windows, there’s an Adjust tone button (an icon with two sliders); it opens a menu that lets you select another writing style. Copilot will then adjust its result with the style you select.
• In the Word web app, there’s a text entry box where you can refine the result by typing more prompts.

Note: Users with Copilot and M365 business subscriptions can also have Copilot rewrite messages in Teams. This feature works similarly to the Rewrite with Copilot panel in Word.

Using the Copilot sidebar in Word or OneNote

On the Home tab in the ribbon toolbar, click the Copilot button to open the Copilot sidebar to the right. To have Copilot rewrite the whole document or note, type rewrite inside the sidebar’s text entry box. To have it rewrite a specific paragraph, supply the paragraph number. You can also describe how you want the text to be rewritten, such as rewrite first paragraph to be shorter or rewrite paragraph 3 to sound more professional.

Copilot’s rewritten text appears in the sidebar. Below this result you’ll see the Copy button to copy the rewritten text to your clipboard.

A rewritten paragraph in the sidebar.

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A rewritten paragraph in the sidebar.

Howard Wen / IDG

A rewritten paragraph in the sidebar.

Howard Wen / IDG

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Howard Wen / IDG

If you want to adjust Copilot’s rewriting result, you can click one of the suggested prompts that appear in the sidebar below the generated text and above the text entry box. To see different prompt suggestions, click the circular arrow icon.

In the text entry box, you can refine the result by typing more prompts.

Although the Copilot sidebar offers more options for refining its rewritten text than it does for text it generates from scratch, it’s still underpowered compared to the Rewrite with Copilot panel. The best way to rewrite text with Copilot in Word is to use the Rewrite with Copilot panel.

Using the right-click menu in OneNote

Alternatively, in OneNote, you can right-click the top bar of a text field on a page. On the menu that opens, select Copilot and on the next menu, Rewrite.

In OneNote, you can use a text field’s right-click menu to trigger a Copilot rewrite.

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In OneNote, you can use a text field’s right-click menu to trigger a Copilot rewrite.

Howard Wen / IDG

In OneNote, you can use a text field’s right-click menu to trigger a Copilot rewrite.

Howard Wen / IDG

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Howard Wen / IDG

This action will trigger Copilot to rewrite everything inside this text field. The rewrite will then be set inside the top of the text field.

The rewritten text appears in the text field above the original text.

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The rewritten text appears in the text field above the original text.

Howard Wen / IDG

The rewritten text appears in the text field above the original text.

Howard Wen / IDG

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Howard Wen / IDG

Summarize long documents, notes, emails, or threads

You can have Copilot generate a brief summary of a long document in Word or a page in OneNote. For this to work well, Microsoft says the document or page should contain at least 300 words but no more than 20,000.

In Outlook, Copilot can summarize a long email and, even more useful, the conversation within an entire email thread.

Using the Copilot sidebar in Word and OneNote

With the document opened in Word or page opened in OneNote, highlight the text that you want summarized. (If you want a summary of the entire document or page, skip this step.)

Click the Copilot button on the Home tab of the ribbon toolbar to open the Copilot sidebar. Inside the text entry box, type summarize and click the arrow button.

Copilot will generate a summary and display it inside the sidebar.

Copilot’s summary of a long document appears in the sidebar.

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Copilot’s summary of a long document appears in the sidebar.

Howard Wen / IDG

Copilot’s summary of a long document appears in the sidebar.

Howard Wen / IDG

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Howard Wen / IDG

Below the summary, there’s the familiar Copy button to copy the summary to your PC clipboard.

Below that, you can click References to see a list of citations within the document that Copilot used to generate this summary. Clicking a snippet of the cited text will show in the main window of the app where in the document or page these words are. Clicking the down arrow to the right of a citation will show the passage that Copilot used as a citation.

Click References to view citations from the document that Copilot used for its summary.

Howard Wen / IDG

Between the results field and the text entry box, you’ll see suggested prompts that you can click to revise the summary. Click the circular arrow icon to refresh these prompts with new suggestions.

Using the right-click menu in OneNote

Right-click the top bar of a text field. On the menu that opens, select Copilot > Summarize. This action will trigger Copilot to summarize everything inside this text field. The summary will then be set inside the top of the text field.

Copilot summaries created via OneNote’s right-click menu appear at the top of the text field being summarized.

Howard Wen / IDG

Summarizing emails and threads in Outlook

Open the email or conversation that you want to summarize. Click Summarize or Summary by Copilot at the top of the email thread. Copilot will generate a summary of the email or thread.

A Copilot-generated summary of an email.

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A Copilot-generated summary of an email.

Howard Wen / IDG

A Copilot-generated summary of an email.

Howard Wen / IDG

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Howard Wen / IDG

This summary will be posted at the top of the email or thread. Thread summaries may include citations that Copilot used in generating the summary.  Clicking a citation (denoted by a number) will scroll down the thread to the cited email for you to view.

This Copilot-generated summary of an email thread includes citations you can click to go to the source email.

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This Copilot-generated summary of an email thread includes citations you can click to go to the source email.

Howard Wen / IDG

This Copilot-generated summary of an email thread includes citations you can click to go to the source email.

Howard Wen / IDG

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Howard Wen / IDG

Getting a summary when sharing a Word doc (business plans only)

If you have Copilot with a Microsoft 365 business plan, you can use Copilot to generate a summary of a Word document when you share it with your co-workers. This summary is inserted as a passage of text inside the message that your co-workers receive inviting them to collaborate on the document.

With the document open in Word, click the Share button toward the upper right. On the Share panel that opens, click the Copilot icon inside the lower right of the “Add a message” composition box. The AI will generate and insert the summary. You can edit the summary before you send out the invite.

Related:

• Copilot for Microsoft 365 deep dive: Productivity at a steep price
• Is Copilot for Microsoft 365 a lying liar?
• Microsoft cheat sheets: Dive into Windows and Office apps

A probe by the US Department of Justice (DOJ) into Nvidia’s selling practices will likely go nowhere, Scott Bickley, advisory practice lead at Info-Tech Research Group, predicted Friday.

On Thursday, Reuters first reported findings of an earlier published report that “DOJ investigators are looking at whether Nvidia pressured cloud providers to buy multiple products,” and in a follow-up article stated that 10 progressive groups, and Democratic Senator Elizabeth Warren, have also asked the DOJ to investigate the company, citing its “dominance of the market for the chips driving the artificial-intelligence boom.”

In a joint letter to Assistant Attorney General Jonathan Kanter, sent on Tuesday, the groups welcomed news of plans to open an antitrust investigation into Nvidia.

They stated that the company “has made it clear that it intends to ride the AI wave as long and as far as it can, and its astonishing dominance in GPU accelerator chips — it now holds an 80% overall global market share in GPU chips and a 98% share in the data center market — puts it in a position to crowd out competitors and set global pricing and the terms of trade. Given the integral part technology plays in contemporary life, this constitutes a dire danger to the open market, and well deserves DOJ scrutiny.”

Bickley said that the real reason for any investigation is the “battle of mega corporations currently going on. Basically, you have the hyperscalers who are the largest consumers of Nvidia’s GPUs. They’re also trying to develop their own version of GPUs. And no one in the world has been successful at displacing Nvidia in this marketplace. They have close to 90% market share. So Nvidia is pulling levers to drive their revenue and ancillary products and services like the CUDA platform, like their cabling, like their server racks.”

The company’s biggest customers, he said, “are fighting back and saying, ‘we want to do it our way, we need you to adapt, we want the number and quantity of chips we want.’ You have these battles going on.”

According to Bickley, anything related to an antitrust probe is “more hype than substance at this point, because, first, semiconductors are the most volatile sector in the stock market. [Nvidia CEO] Jensen Huang knows full well that this wave that they’re riding at the end of the day will crest, and it will crash, and it will happen violently when it does. They are squeezing everything they can out of the short runway and they are trying to elongate that runway as much as possible.”

As for the DOJ, he said, “if you have reputable names complaining, they are going to take a look at it, but under the Biden administration, the department has been extraordinarily unsuccessful in about every antitrust action they’ve decided to take on. Just because they’re looking at it doesn’t mean they’re going to do anything about it.”

“[By the time] they do something about it, and the time that it takes to resolve, this cycle will have already crested, in my opinion. The money will already be made, the damage will already be done … The reality is that we are talking about an anti-competition inquiry for a product that there is really no competition for.”

That is, he said, “the first thing that comes to my mind. The second is, is they (DOJ) may attack the CUDA platform, which only works for development on Nvidia GPUs. The EU has a practice of saying ‘you can’t do this; you have to make your platform open.’ I think that’s arguable. But why would a platform designed to support a specific piece of hardware have to support other people’s hardware?”

The DOJ could force them to do that, and what Nvidia then might do, said Bickley, is develop an alternative platform that will ultimately be less effective on non-Nvidia products in order to comply.

“And the reality is this, and I will use the Adobe example,” he said. “If I’m a graphic designer, and I go to school, and I’m trained on Photoshop, and it integrates with the other Adobe suite of products you can’t make me use Corel Painter to do what Photoshop does and think I’m not going to go find another job.”

It’s the same thing with developers in the GPU space, he said. “They only want to learn one platform; they don’t have the bandwidth to learn up on multiple platforms. The lock-in is real, and by the time these things [antitrust probes] come around to any sort of fruition, the ecosystem is going to be pretty much set in stone.”

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Hiring in the technology sector and the broader tech workforce took a step back in July with an overall slowdown in job growth, according to a US Bureau of Labor Statistics (BLS) report today and an analysis of that data.

The tech industry shed an estimated 9,162 jobs last month, according to CompTIA, the nonprofit association for the tech industry and workforce.

“Although disappointing, the slowdown in hiring is about in line with expectations,” said Tim Herbert, CompTIA’s chief research officer. “Employers continue to weigh a range of factors in shorter-term tech hiring while eyeing longer-term growth strategies.”

Active employer job postings for tech positions totaled more than 471,000, including 176,324 categorized as new postings added in July. Demand was strongest for software developers and engineers, IT project managers, data analysts and scientists, and tech support specialists, though totals in all occupation categories were down for the month.

That said, the unemployment rate for the tech industry actually dropped significantly — from 3.7% in June to 3.2% in July, according to CompTIA. That compares to the nation’s overall national unemployment rate, which rose to 4.3% in July, according to BLS data.

Only 114,000 jobs were added over all in the US last month; economists had expected around 175,000 new jobs and said the unemployment rate should have remained 4.1%.

CompTIA

Employment continued to trend up in healthcare,  construction, and in transportation and warehousing, though information fields lost jobs, according to the BLS.  Information employment declined by 20,000 in July, but has changed little over the year, according to the agency. (The Information sector includes workers who produce and distribute information and products; those who provide the means to transmit or distribute those products as well as data or communications; and those that process data.)

In June, the tech industry had more workers than any previous month this year, but overall job postings were down month-over-month, just as they were in July.

“Temperatures might be hot around the country, but there’s no summer heatwave for the job market. With across-the-board cooling, we have lost most of the gains we saw from the first quarter of the year,” said Becky Frankiewicz, president of workforce consultancy ManpowerGroup North America.

With the number of new jobs and overall open jobs contracting, the market continues to soften, meaning employers and employees should “sit tight,” according to Frankiewicz.

“We are seeing both sides play the Great Waiting Game — changing roles won’t offer workers the pay gains they saw post-pandemic, and employers are holding onto their talent,” she said. “The loosening in demand we have been waiting for is beginning to emerge — all job functions are showing declines, and we may have hit the peak of the post-pandemic IT hiring surge.”

Realtime data shows hiring remains concentrated in healthcare, logistics and IT, Frankiewicz said.

CompTIA

An analysis of employment data indicates organizations continue to focus on skills-based hiring, according to CompTIA.

In July, for example, 46% of active tech job postings did not specify a four-year degree requirement among candidates. Several key occupations recorded even higher percentages, the group said. Those occupations include network support specialists (87%), IT support specialists (72%), network and systems administrators (52%) and database administrators (50%).

Along with hard skills, soft skills are becoming a key focus of hiring managers in many cases. For example, the ability to get along with co-workers, adapt quickly, critically think and consider strategic vision are all skills highly prized by employers.

Tina Wang, division vice president of human resources at ADP, said there are a few ways for job seekers to bring attention to their behavioral skills. It goes beyond just listing “strong work ethic” or “problem solving” on a resume, “though it’s good to add it there too,” she said.

Job seekers can incorporate behavior skills in a track record of job experiences. “For example, what was an example of ‘ability to work on a team’ at your previous job? Did you manage or actively participate in a long-term project with multiple internal teams and bring together various ideas from these teams into one cohesive strategy,” Wang said.

June 2024

The technology industry added more workers in June than any previous month this year; however, overall job postings were down month-over-month.

New employer job postings for tech positions totaled nearly 200,000 in June, down slightly month-over-month. In total there were more than 444,600 active tech job postings for the month and 2.5 million for the year, according to CompTIA, a nonprofit trade group.

Other measurements, however, were down in June. IT occupations throughout the economy decline by 22,000 positions last month, and the unemployment rate for tech occupations rose to 3.7%, according to CompTIA’s estimates based on an analysis of the US Bureau of Labor Statistics (BLS) report released today.

“It’s another month of mixed signals in the labor data we look at. The tech industry added more workers in June (+ 7,540) than any month so far in 2024,” a CompTIA spokesperson said. “It’s also the first time this year that the industry added workers in consecutive months (+ 3,500 in May).

New employer job postings for open positions declined by about 8,600 from May to June, but there were still 446,000 active postings listed by employers.

The national unemployment rate ticked up a tenth of a percentage point from 4% in May to 4.1% in June, according to the US Bureau of Labor Statistics, which released its monthly jobs report today.

Nevertheless, the June BLS report slightly beat expectations and showed remarkable resiliency, even as inflation (at 3.3%) and interest rates remain higher than the Federal Reserve Board had hoped.

Technology services and software development occupations continue to lead new hiring, a positive sign for the small- and medium-size segment of the sector. The total base of US tech industry employment stands at approximately 5.6 million workers, according to CompTIA.

CompTIA

Overall, wages were up 0.3% from May and up 3.9% compared to the same time last year, further assuaging concerns that inflation could flare up again. Earlier this week, Fed Reserve Chair Jerome Powell said the labor market is “cooling off slowly.”

“What we’d like to see is more data like we’ve been seeing recently,” Powell said.

When it came to remote tech job postings in June, software developers saw the greatest uptick in numbers. Postings increased by more than 1,100, bringing the total number of job postings for software developers in June to 11,487, according to CompTIA.

Postings for other IT positions, such as project managers, data scientists, and support specialists were down slightly last month, but not significantly.

Over the past several years, organizations — including the US government — have been removing four-year college degree requirements from job postings. CompTIA’s report showed that 46% of all active tech job postings in June did not specify that candidates have a four-year degree. The percentage was higher for several key tech positions, including network support specialists (90%), IT support specialists (73%), network and systems administrators (54%), network architects (50%), and database administrators (50%).

As is traditional, the BLS revised its previous months’ employment figures; Employment for April was revised down by 57,000, from 165,000 to 108,000 additional jobs, and the May figure was revised down by 54,000, from 272,000 to 218,000 jobs. With those revisions, employment in April and May combined was 111,000 lower than previously reported.

The number of unemployed people, at 6.8 million, changed little in June, while they remained higher than a year earlier, when the jobless rate was 3.6% and the number of unemployed people was 6 million.

Ger Doyle, ManpowerGroup senior vice president and head of its recruiting subsidiary Experis North America, said that although last month’s numbers were revised down, this month’s unemployment numbers are “a solid uptick.”

“So, we continue to see stabilization and rebalancing,” Doyle said. “This is another proof point for a steady-as-she-goes labor market where demand is shifting in some key sectors and employers and employees are staying put.”

While BLS is a look back in the rear-view mirror, Doyle said, ManpowerGroup’s “real-time data” shows a more significant decline in June vs. May, but stabilization overall in Q2 2024 and this year compared to last year.

“The demand we’re seeing is driven by sectors including legal, sales, marketing, and creative and we’ve seen an uptick in demand for managers, demonstrating the need for leadership to help businesses and employees navigate the recovery,” he said.

May 2024

The hiring of technology professionals is at its highest levels since last year and the unemployment rate for IT workers dropped significantly last month, according to an analysis of data from the US Bureau of Labor Statistics (BLS) report today.

Employer tech job posting volumes have not been this high since last June, according to a report by industry group CompTIA. The unemployment rate for tech occupations dropped three-tenths of a percentage point from 2.8% in April to 2.5% in May, well below the national rate of 4%.

Overall, the US economy added more jobs than expected in May, demonstrating a resilient post-pandemic labor market, even as the economy recalibrates in the face of the growing adoption of artificial intelligence. Employers added 272,000 jobs, though the overall unemployment rate ticked up, ending a 27-month streak of unemployment below 4%, according to the BLS.

Tech hiring intent is at its highest point since last year, according to CompTIA, with technology companies adding staff in May — though at a slower pace than recent months. The tech sector added 2,181 jobs last month, increasing employment to nearly 5.6 million workers.

“The jump in tech job postings is an encouraging indicator more employers are coming off the sidelines,” said Tim Herbert, CompTIA’s chief research officer. “It may reflect pent up demand for the tech talent companies will need to support digital growth initiatives.”

Several tech occupation categories saw double-digit increases in job postings, including data scientists (+24%), database administrators (18%), software developers (+17%), web developers (15%), network architects (12%) and tech support specialists (+10%).

Janco Associates

“In real time, we’re seeing a ‘steady as they go’ job market, where demand remains strong but softening in some sectors,” said Becky Frankiewicz, president ManpowerGroup North America. “There are 8.1 million job openings, but job postings are down 8% month over month, according to our real-time data.”

Gains in pay also stabilized at 3.9%, down from almost 6% in 2022, approaching the pre-pandemic levels of 3.1%, according to ManpowerGroup’s data. “This post-pandemic rebalancing is likely to continue throughout the year,” Frankeiwicz said. “While tech hiring isn’t as robust as it used to be, demand remains strong. Software developers and IT generalists are the most in-demand roles in the US today, right behind registered nurses.” 

The IT Job market grew by 10,300 positions over the past three months and by 25,700 in the last 12 months, according to IT consultancy Janco Associates. That compares to 2023, when the IT job market shrank by over 48,600 jobs, according to Janco. (It now estimates there are 119,000 unemployed IT professionals.)

CompTIA

Inflation, which is running at 3.4% annually, actually drove up tech salaries. The median salary for IT professionals rose to more than $103,000, according a mid-year IT salary survey by Janco, with continuing high demand for workers with AI and machine learning skills.

Janco Associates CEO Victor Janulaitis, painted a less sunny picture of the job market for IT pros, with an unemployment rate at 4.5%. “The picture is poor at best and not likely to improve in the short term,” he said. “Companies are continuing to cut back on staff in order to improve productivity. With median compensation for IT Pros at $103K, IT Pros are the focus of many organizations and will continue to see a very soft job market for IT Pros.

Shifting job requirements

CompTIA’s latest report shows that 45% of all active tech job postings in May did not require candidates have a four-year degree, signaling that employers are widening their search for talent. Some essential tech positions had even higher percentages, such as network support specialists (86%), IT support specialists (72%), network and systems administrators (54%) and programmers (50%).

CompTIA’s analysis aligns with hiring trends in many organizations, including the federal government. Studies have shown that employers are ending college degree requirements for many openings, focusing instead on skills, experience, and personality traits. The sea change opens up tech jobs to a more diverse pool of candidates.

And companies (regardless of size) value soft skills over traditional, industry-specific traits for current and potential hires, according to a new MarketPulse survey by pay check company ADP.

The highest ranked skills or traits prioritized in new hires were factors like a strong work ethic, problem solving skills and being detail oriented:

Small Orgs (1 – 49 Employees)

• Strong Work Ethic: 53%
• Problem Solving: 40%
• Detail Oriented: 34%

Medium Orgs (50 – 999 Employees)

• Strong Work Ethic: 40%
• Problem Solving: 39%
• Detail Oriented: 27%

Large Orgs (1,000+ Employees)

• Strong Work Ethic: 42%
• Problem Solving: 37%
• Detail Oriented: 23%

In the workplace, employees are staying put, with quit rates holding steady at 2.2%, according to ManpowerGroup’s data. “As a result, employers are finding ways to incentivize and upskill their current workforce for new roles, as pay gains for job-changers have dipped for the second consecutive month,” Frankienwicz said.

April 2024

The unemployment rate for technology jobs in the US ticked down for the second month in a row in April, as the number of job listings for AI-related positions leaped to 11% of all postings, according to new employment data. And, 26% of all tech job postings in April were for positions in emerging tech or that require emerging tech skills, according to CompTIA, a nonprofit tech trade association. 

Emerging skills include AI, blockchain, IoT, augmented & virtual reality. “None of these individually are generating huge volumes of job openings today, but we feel it’s worth paying attention to,” a CompTIA spokesperson said.

Employers listed nearly 179,000 new postings for tech positions last month. In total, there were an estimated 415,000 active tech job postings.

The unemployment rate for tech jobs inched down from 4% in March to 3.8% in April. That compares to the February figure of 4.5%. according to CompTIA data, which is based on the US Bureau of Labor Statistics’ (BLS) latest jobs report.

The BLS on Friday reported that the overall US unemployment rate (3.9%) remained largely unchanged from March, when it was 3.8%. Overall unemployment has ranged between 3.7% and 3.9% since August 2023, according to the BLS. The agency said 175,000 jobs were added in April.

Ger Doyle, head of recruitment service Experis North America, said his organization is seeing “a cooling effect” in the job market. “Our real-time data paints a picture of a job market that is balancing out. We see increased demand in April in medical/health (16%), IT (11%) and executive management (7%), and all have shown growth from Q4 2023,” Doyle said.

Within tech, AI Safety and Compliance roles have seen a sizable increase (129%) since July 2023. “Employers are also raising expectations around IT skill sets for executives and legal functions, and AI/ML engineers are now expected to showcase a blend of technical and soft skills to remain competitive in the job market,” Doyle said.

CompTIA

 
For college graduates, the road is tougher, according to Doyle; they’re dealing with an unemployment rate of 6.2%. That trend coincides with employees holding onto their current positions for longer durations, which aligns with a dip in consumer confidence — now at its lowest since July 2022, according to Experis’ data.  

In April, skills-based hiring in the tech marketplace was up sharply. CompTIA reported that 46% of all active tech job postings in the last month did not specify that candidates have a four-year degree. More employers, including the federal government, are leaving behind college degree requirements and embracing a skills-based hiring approach that emphasizes strong work backgrounds, certifications, assessments, and endorsements. And soft skills are becoming a key focus of hiring managers, even over hard skills.

Goldman Sachs

The percentage of postings that did not require a college degree rose markedly for five tech jobs in particular: network support specialists (86%), IT support specialists (73%), network and systems administrators (55%), web and UI/UX designers (51%) and database administrators (48%).

Even though tech unemployment again dipped, the layoffs that began in 2022 have continued this year, indicating a shift in desirable job positions. This year is expected to be a year of recovery for the IT industry. 

“Employers and job seekers continue to navigate a shifting labor market,” said Tim Herbert, chief research officer at CompTIA. “Skills-first approaches to hiring and talent development are even more important against this backdrop.” 

Technology companies added an estimated 4,280 workers in April, CompTIA’s analysis of BLS data revealed. Growth was led by hiring in technology services and software development (+5,600) and cloud infrastructure (+900). Cloud infrastructure and data processing and hosting jobs have seen gains in nine of the past 12 months, while positions in tech and software services have risen in 10 of the past 12 months.

CompTIA

Technology occupations throughout the economy, however, fell by 20,000 in April, a decline of 0.3%, according to CompTIA.

Martha Heller, CEO of executive tech talent search firm Heller Search, said her data shows a softening in the IT job market.

“But the IT sector layoffs are mainly due to IT service providers, such as Microsoft and Salesforce, which are replacing those teams with AI developers and data scientists,” Heller said. “For IT sector business owners, this means they must re-platform all their products with AI integrations.  But for business leaders in every other sector, they have a very big pool of IT talent to choose from now.”

The real job growth story in technology hiring will continue to be AI, according to Heller, as companies race to implement the fast-evolving tech in support of digital transformation projects and to boost productivity and efficiency. Whether companies are ready to hire their own AI developers or need to modernize their legacy tech first, they will all need to continue to grow their technology teams or be left out of the AI boom, according to Heller.

Craig Crisler, CEO of IT talent outsourcing firm SupportNinja, agreed with Heller, adding that “generative AI is white hot and in demand” and so is the job market for it. “While many companies are on a hiring spree for AI, we’re also seeing a shortage in talent for folks with AI PhDs and data scientists, making them very expensive and difficult to find,” he said.

Companies, Crisler said, now have to walk a fine line between finding the talent they need and finding the revenue to pay for that new talent. “Some might get one or two really expensive hires and fill the rest of the team with cheaper talent, while some might fill out their entire team with mid-range salaries and go with a more balanced approach,” he said.

March 2024

After a lengthy spat of layoffs spiked unemployment rates in recent months, the tech industry is poised to return to growth, according to analyses of the US Bureau of Labor Statistics (BLS) report released today.

Employers accelerated their hiring of technology workers and expanded their search for new tech talent in March, according to CompTIA, a nonprofit association for the IT industry and workforce.

Tech companies added an estimated 6,000 workers last month, according to CompTIA’s analysis of BLS data. Job growth was led by new hiring in technology services, software development, cloud infrastructure and related positions.

Technology occupations throughout the economy rose by 203,000 for the month. That pushed the unemployment rate for tech occupations in March back down a full half a point from 3.5% in February to 3.0%, according to CompTIA.

CompTIA

Employers added 191,000 new job postings for tech positions, an increase of 8,000 from the previous month and the highest volume since August 2023. In total, there were an estimated 438,000 active tech job postings in March.

“With all four key tracking metrics in the positive for the month, it’s a welcome return to stability in the tech employment data,” said Tim Herbert, chief research officer at CompTIA.

By occupation category, software developers and IT support specialists saw the largest increases in openings from February to March. The job posting data also affirms that there are a variety of paths to a job in technology. CompTIA’s report shows that 46% of all tech jobs postings in March did not specify that candidates have a four-year degree.

Percentages were higher in certain job categories, such as IT support specialists (78%), network support specialists (66%) and web UI/UX designers (62%). Jobs in artificial intelligence (AI) or for occupations that require AI skills accounted for 41% of March postings in the emerging technologies sub-category.

Becky Frankiewicz, president of Manpower Group North America, took a more subdued view of the current tech market. “Our real-time data shows signs of a goldilocks labor market — hiring is slightly hotter than last year at this time, cooler than last month and warmer than pre-pandemic,” she said “This demonstrates remarkable resilience given the economic uncertainty we’re experiencing right now.”

Both the overall US unemployment rate, at 3.8%, and the number of unemployed people, at 6.4 million, changed little in March. The unemployment rate dropped one-tenth of a percent from February’s 3.9%.

Overall US unemployment has remained in a narrow range of 3.7% to 3.9% since August 2023, according to BLS data. While the unemployment rate changed little, the U.S. labor market added 303,000 jobs in March, which far exceeding the roughly 200,000 economists had predicted.

According to Janco Associates, a management consulting firm for the IT industry, the number of unfilled IT jobs fell from 202,000 in January to 117,000 in February — a drop of more than 42%.

CompTIA

Tech demand remains stronger than last year at this time and was stronger in Q1 2024 than during the final three months of 2023.

“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,” said Ger Doyle, senior vice president at ManpowerGroup and Head of Experis North America — a ManpowerGroup focused on recruitment of US tech talent.

“Humanizing tech roles is the key to continuing this growth, making the ladder for tech roles in reach and bringing attainable skills to employers and employees alike,” Doyle said.

In its “State of the Tech Workforce 2024,” CompTIA forecasts tech employment growth of 3.1% this year — a net gain of more than 300,000 new jobs. That compares to the 1.2% growth rate of 2023, which yielded about 117,000 net new hires.

Top projected occupations for this year, and their growth rates, include: data scientists and data analysts, up 5.5%; cybersecurity analysts and engineers, up 5.1%; software developers and engineers up 4.8%; software QA and testers, up 4.3%; computer and information research scientists, also up 4.3%; CIOs and IT Directors, up 3.6%; web developers, also up 3.6%; and web and digital interface designers, up 3.6%.

According to projections from the BLS statistics and job market analytics firm Lightcast, the tech workforce will grow twice as fast in the next 10 years as the overall US workforce. The replacement rate for tech occupations during the 2024-2034 period is expected to average about 6% annually, or approximately 350,000 workers each year, totaling several million through 2034.

Growth in so-called “driver occupations” will expand even faster. Positions in the data science and data analyst, cybersecurity, software development, UI/UX and emerging tech categories, including artificial intelligence, will grow at the fastest rates on a percentage basis, according to CompTIA. “On a volume basis, core infrastructure positions in networking and cloud engineering, along with tech support positions, will continue to serve as the on ramp for many starting a career in technology,” the report stated.

Projections from CompTIA’s report indicate that 20 states and 14 metropolitan areas will exceed the average growth rate this year. Twenty-six metro markets are expected to at least double last year’s job growth rate, reflecting the diversity of tech hub concentrations across the US.

February 2024

US unemployment in the technology sector increased by 0.2% to 3.5% last month, following an upward trend in joblessness in all sectors.

Technology occupations across the economy declined by an estimated 133,000 positions, according to a new report from IT industry group CompTIA.

Overall, the US unemployment rate among all job markets rose by 0.2% to 3.9% in February, and the number of unemployed people increased by 334,000 to 6.5 million. A year earlier, the jobless rate was 3.6%, and the number of unemployed people was 6 million. While unemployment did tick up, February’s rate continued the longest stretch of unemployment below 4% in decades.

There were 275,000 jobs added to the US market last month, according to the US Bureau of Labor Statistics (BLS) report today. The data shows a significant uptick over January’s 229,000 jobs added to the workforce, but lower than December’s numbers, when 290,000 jobs were added.

“New hiring of tech services and software development personnel is the lone bright spot in February’s lackluster technology employment data,” said Tim Herbert, chief research officer at IT industry group CompTIA.

Overall tech industry employment increased modestly, employer job postings for future tech hiring were flat, tech occupations throughout the economy declined, according to CompTIA’s latest jobs report.

“We continue to see the lag effect of market developments working their way into government employment data,” Hebert said. “While employers across every sector of the economy demand tech talent spanning the continuum of tech job roles, there are pockets of employers recalibrating their staffing levels.”

IT business consultancy Janco Associates had a similar take on the lackluster IT job market performance in February. It said in its report today that hiring of IT Pros is hindered by the lack of qualified individuals and a slowing economic picture, which “will have a dampening impact on the growth of the IT job market size.

According to Janco’s data, there are currently 4.18 million US workers employed as IT professionals. The rate of growth in the number of new IT jobs has slowed, the firm said.

“There now are just over 121,000 unemployed IT professionals. The IT job market shrank by over 48,600 jobs in calendar year 2023, Janco’s report stated. “Overall that is a flattening of the long term growth rate pattern of IT job market,” the firm said.

One of the more surprising results of the BLS report, however, was that the agency drastically revised its January job gains, which had previously been reported as a leap of 353,000 new jobs. The revised numbers dropped that by more 124,000 jobs.

Tech employers added 185,000 new job postings for positions in February, raising the total number of active tech job postings to more than 436,000, according to CompTIA’s data. California, Texas and Virginia had the largest volumes of tech job postings among the states. At the metro level, Washington, New York, Dallas, Chicago and Boston were the most active markets. 

Open positions in artificial intelligence or jobs requiring AI skills continue to hover near the 10% threshold, while positions offering hybrid, remote or work from home options account for about 20% of all tech job postings, CompTIA’s report showed.

Technology companies added an estimated 2,340 workers last month, CompTIA’s analysis of BLS data showed. The technology services and software development sub-sector saw employment increase by 4,200 positions, but those gains were offset by staffing reductions in telecommunications and manufacturing.

Net tech employment spanning tech industry and tech occupation employment totaled more than 9.6 million workers, according to CompTIA’s data.

Over the next quarter — from April through June — the US is expected to lead all other nations in IT hiring, according to IT staffing firm Experis, a subsidiary of ManpowerGroup.

Ger Doyle, head of IT staffing at Experis North America, said while hiring data shows worker demand will remain strong, it will be “more balanced and concentrated.”

Nurses, software developers and front-line retail workers are the three most sought after roles in the U.S. today, according to Doyle.

“In the tech space, AI and machine learning engineers are seeing good growth since last year, with finance and consulting companies as some of the top employers of this specialist tech talent,” Doyle said.

While tech sector layoffs have made headlines over the past year Experis’s data shows the same companies laying people off are also hiring, including top tech companies such as Google, META, Amazon and Apple. However, consuntancies and financial services companies are also hiring – firms such as KPMG, Booz Allen Hamilton, JPMorgan Chase & Co and Slalom Consulting, according to Doyle.

While artificial intelligence and machine learning engineer hiring decreased by 1% in February, the demand for the roles has been trending upward since May 2023, Doyle said.

Wages are following suit, and have remained steady overall, with month-over-month increases in some sectors where remote and hybrid roles have increased, such as IT and business operations.

Hybrid job roles are strongest in the IT (38%) and finance (40%) sectors, according to Experis data.

January 2024

The US added twice as many jobs in January as analysts had expected, though the unemployment rate remained unchanged at 3.7% and tech layoffs continued to plague the IT industry.

In January, the US added 353,000 jobs, according to data published today by the US Bureau of Labor Statistics (BLS). And for tech workers, the latest employment data suggests 2024 is off to a promising start, according to an analysis by IT trade association CompTIA.

Tech companies added nearly 18,000 workers last month, the second consecutive month of job growth. The unemployment rate for tech occupations remained at 3.3%, well below the overall national rate, according to CompTIA. Yet, overall, tech occupations, which span all industries, were down in January.

Tech companies added jobs in several primary sub-sectors:

• Technology services and software development (+14,500)
• Cloud infrastructure (+2,100)
• Tech manufacturing (most notably semiconductors) (+1,400)

Also, on the rise – job openings in artificial intelligence (AI) and positions that offer hybrid, remote, or work from home options. AI job postings or jobs requiring AI skills increased by about 2,000 positions from December to 17,479 last month, CompTIA said.

Tech occupations across all markets and the broader economy, however, declined by an estimated 117,000 positions. “This month’s data is a helpful reminder of the many moving parts in assessing tech workforce gains or losses,” said Tim Herbert, chief research officer at CompTIA. “The expansive tech workforce will simultaneously experience gains and losses reflecting employer short-term and longer-term staffing needs.”

Employers listed more than 392,000 active tech job postings, with nearly 178,000 added last month alone. January’s total of active postings was 33,727 more than the December 2023 figure, the largest month-to-month increase in a year.

There was significant employer interest in filling positions in software development, IT project management, data analysis and science, IT support and systems analysis and engineering. And after several months of decline, the number of job postings offering hybrid, remote or work-from-home options exceeded 30,000 in January, up about 5,000 from December.

“Looking at the bigger picture, we continue to see a post-pandemic rebalancing,” said Becky Frankiewicz, president of staffing firm ManpowerGroup NA. “While hiring isn’t as strong as a year ago, it is better than pre-pandemic and has improved month-over-month.

“We’re also seeing an expected post-holiday hangover in retail and logistics, balanced by increases in IT, finance, accounting and engineering,” she continued. “Overall, more jobs are available now for each unemployed worker than there were before the pandemic, creating a stable environment for employers and employees.” 

Layoffs in the tech sector have been a thorn in the side of an otherwise healthy industry. Amazon, Google, and Microsoft collectively laid off tens of thousands of workers last year and were among a number of companies that announced planned layoffs for this year. Meta and Google and AWS are cutting back on more ambitious “moonshot” projects, as enterprises are still hesitant to spend big on large software buildouts, etc.

This week, iRobot announced it would lay off about 31% of its 1,250 employees after a deal to be acquired by Amazon fell through.

The number of employees laid off at tech companies more than tripled between December and January, according to industry tracker Layoff.fyi. So far this year, 115 tech firms have laid off 30,375 employees, according to the site.

Though layoffs remain below pre-pandemic levels, the number of US employees filing for jobless benefits last week reached an 11-week high. And while the stock market continues to soar, tech companies appear worried.

Many segments of the market remain soft, according to Jack Gold, principal analyst with business consultancy J. Gold Associates. That is likely to continue for at least the next two quarters, he said.

“Tech layoffs might make the headlines, but our real-time data shows a more nuanced story. In many cases, the same companies that are laying people off are also still hiring — they’re just laser focused on hiring to meet demand,” said Ger Doyle, senior vice president of tech employment service Experis.

As an example, Microsoft and Amazon, which recently cut jobs in gaming and streaming, respectively, are simultaneously planning huge investments in AI, according to Doyle. 

Experis’s data shows tech demand rebounded in January (up 26% compared to  December), with demand for AI/ML engineers growing 19% last month.

“AI hiring is through the roof due to betting on the future next big thing,” Gold said. “But that leaves many more mature industries vulnerable to scaling back. The thinking in many companies is, let’s cut back on ‘fringe’ stuff until we can determine if we’re going to be OK.”

Doyle said it’s important for employess to keep a focus on internal mobility. “We’re also seeing small and mid-size companies have their moment, scooping up tech talent that may have let go by the big hitters. It’s also important to remember that today every company is a tech company — Capital One, Doordash and Reddit are among the top hirers of AI and machine learning talent in the country today.

“Those with tech skills will still find themselves in high demand and able to call the shots on remote working, too…,” Doyle said.

December 2023

Unemployment in the IT industry ticked up from 2% in November to 2.3% in December, according to an analysis of the latest jobs data from the US Bureau of Labor Statistics (BLS).

Tech occupations throughout the US economy declined by 79,000 positions last month, though the unemployment rate for tech occupations was still well below the overall national unemployment rate of 3.7%.

The up-and-down pattern in tech employment seen over the past few months continued in December, according to CompTIA, an IT trade association.

Tech companies added the largest number of workers since April, but tech occupations throughout the economy declined, according to CompTIA’s analysis of data from the BLS.

Job postings for tech occupations also fell. Active postings totaled nearly 364,000, including 142,295 newly added by employers in December, according to CompTIA.

There’s still strong demand for tech workers; US employers advertised 3.13 million IT job postings during 2023 for a wide range of positions including support, infrastructure, software, data, cybersecurity, and technology enablement.

In December, the top tech job postings by job openings in the US were:

• Software Developers and Engineers — 40,490;
• IT Project Management, Data Analysts, Emerging, Other — 27,853;
• IT Support Specialists — 16,526;
• Systems Analysts and Engineers — 12,513;
• Data Scientists — 10,293.

(Not every “help wanted” ad results in a new hire; generally, the ratio is one new hire for every eight job postings, according to CompTIA.)

One area that saw marked hiring involved artificial intelligence (AI) roles. Employer hiring for AI and other specialized skills continued to exceed 10% of all tech job postings, CompTIA said.

The push for AI and generative AI hires might be having an adverse effect on entry-level IT positions, especially in customer service, telecommunications, and hosting automation, according to Victor Janulaitis, CEO of IT consultancy Janco Associates, Inc.

“CIOs and CFOs are looking to improve the productivity of IT by automating processes and reporting where possible,” Janulaitis said. “They are focusing on eliminating ‘non-essential’ managers, staff, and services. Experienced coders and developers still have opportunities.”

The highest demand continues to be for AI specialists, security professionals, programmers, and blockchain processing experts, according to Janulaitis.

Ger Doyle, senior vice president of IT staffing firm Experis, said he still sees “very strong demand” for full stack developers, data scientists, and AI experts. “Seventy-six percent of IT employers say they are facing difficulty finding the talent they need,” Doyle said.

“Supporting people to gain experience and develop new skills will be key to alleviating talent shortages and helping people build employability for the long term,” IT staffing firm ManpowerGroup said in a statement.

Overall, US employers anticipate measured hiring in the first quarter of 2024, while persistent talent shortages continue to impede hiring, according to the latest Employment Outlook Survey from staffing firm ManpowerGroup. With seasonal variations removed from the data, the Net Employment Outlook (NEO) for the U.S. is +35%. 

(The NEO is derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting the percentage of employers who expect a decrease in employment at their location in the next quarter.)

Globally, the US ties for second place in the world (+35%), outpaced by first-place ties, India and The Netherlands (+37%).

“Tech employment remains on solid footing,” Tim Herbert, chief research officer at CompTIA, said in a statement. “Despite the ongoing pattern of mixed signals in the labor market tracking data, the optimistic outlook continues to hold.”

Janulaitis saw it differently, however: “Layoffs at big tech companies continued to hurt overall IT hiring in 2023. CIOs are looking at a troubling economic climate and are evaluating the need for increased headcounts based on the technological requirements of their specific business operations. At the same time, with a mean total compensation of $100,000 for ITpPros, IT will continue to be a target for budget cutting.”

Talent mobility is set to be the key trend of the new year — employers need to look for potential vs past performance and help people make lateral moves within their organization, according to ManpowerGroup.

In December, overall US employment rose by 216,000 people, according to the BLS . The overall unemployment rate remained unchanged from the previous month, with the number of unemployed workers was essentially unchanged at 6.3 million.

Employment in professional, scientific, and technical services continued to trend up, adding 25,000 jobs; the industry added an average of 22,000 jobs per month in 2023, about half the average monthly gain of 41,000 in 2022, according to the BLS report.

For all of 2023, the US added 2.7 million jobs. While the overall unemployment rate has remained under 4% over the past two years, last year ended with a higher unemployment rate (3.7%) than in 2022 (3.5%). Employment continued to trend up in government, healthcare, social assistance, and construction, while transportation and warehousing lost jobs.

“The 2024 labor market is all about balance and moderation — restoring equilibrium after four years of pandemic related swings,” said Becky Frankiewicz, president of the North America Region for staffing firm ManpowerGroup. “Today’s report…shows continued stabilization and an optimistic start to the New Year for employers and workers. Employers are holding onto their people and hiring where the demand exists.”  

Average hourly wage growth accelerated slightly in December, rising by 4.1% over the previous 12 months to $34.27 an hour and continued to beat inflation, boosting workers’ spending power, according to BLS data.

November 2023

The number of new IT jobs being added to the US economy has continued to shrink over the past three months, even as the unemployment rate for tech workers has remained near historical lows.

The unemployment rate for tech workers dropped from 2.2% in October to about 2% in November, according to new data based on US Bureau of Labor Statistics.

Overall, US employment increased by 199,000 in November, and the national unemployment rate edged down to 3.7%, according to the US Bureau of Labor Statistics. That tracks with October, when employment increased by about 150,000 jobs and the unemployment rate was 3.9%.

While there have been a plethora of big employers announcing tech layoffs, there has also been a redistribution of tech talent to midsize and small companies that “finally got their shot at hiring talent post-pandemic,” according to Becky Frankiewicz, president of ManpowerGroup, North America.

“This talent was scooped up almost in real time by smaller size businesses, so it remains quite difficult to fill tech roles in the country,” Frankiewicz said. “Now that every company is a tech company, we also saw tech talent absorbed into other sectors outside of tech — like retail and hospitality.

“We continue to see strong demand in business analyst roles and software developers as companies continue to work on readying projects for the new year and building out their apps for more clicks this season,” she added.

According to a report from business consultancy Janco Associates, the IT job market shrank by 12,000 open positions in the last three months, leaving 101,000 unemployed IT professionals. At the same time, close to the same number of tech positions remain unfilled.

“CIOs have started to halt hiring IT pros. Demand for contractors and consultants is slow due to economic uncertainty,” Janco CEO Victor Janulaitis said in the report. “On a bright side, there are still over 120K unfilled jobs for IT professionals.”

Year to date, the IT job market has shrunk by 24,900 positions, according to Janco’s report. Currently, about 4.18 million people are employed as IT professionals in the US, according to Janco.

Janco’s figures show a year-to-date loss of nearly 25,000 IT jobs.

In the past 18 months, the number of IT pros hired each month has moved from 105,00 to 57,000 in October 2023.

“2023 was not a good year for the size of the IT job market,” Janulaitis said. “We currently do not see any change in that trend. In our professional opinion, in 2024 the size of the IT job market will remain at about the same levels as the fourth quarter of 2023, with growth in size limited to minimal levels.”

The number of unfilled positions for IT pros has fallen from 148,000 to 101,000 in the past 18 months. “There still is demand; however, not at the peak of the post-pandemic hiring frenzy,” Janulaitis said.

Not all IT job reports were doom and gloom, however. CompTIA, a nonprofit association for the IT industry and its workers, echoed ManpowerGroup’s findings, saying that hiring among SMBs is up — way up. And employer demand for AI talent boosted the share of job postings to 12%, the company stated.

Meanwhile, CompTIA’s numbers showed tech unemployment to be at 1.7%, well below ManpowerGroup’s figures, even as it estimated that tech occupations throughout the economy declined by 210,000 last month.

Tech occupations across the economy increased by an estimated 483,000 jobs, according to CompTIA. Tech firms added an estimated 2,159 workers, mainly in IT services and custom software development, CompTIA’s Tech Jobs Report showed.

“With the gains in employer hiring intent for AI talent, the job posting data is finally catching up to the hype,” said Tim Herbert, CompTIA’s chief research officer. “As an enabling technology, companies hiring for AI skills inevitably need to boost adjacencies in areas such as data infrastructure, cybersecurity, and business process automation.” 

Employer hiring activity as measured by job postings for tech positions totaled 155,621 for November. Jobs associated with artificial intelligence (AI) made up 12% of the total, more than 18,000 postings. It’s the first time AI positions have surpassed the 10% threshold. Positions in emerging technologies or jobs that require emerging tech skills accounted for 26% of tech job postings last month.

Tech job postings continue to fall. (Click image to enlarge it.)

ManpowerGroup’s Frankiewicz said her company’s analysts anticipated a stabilization of the IT job market with real-time data showing impacts to all sectors, including “always-hot healthcare” and retail.

“In real time, we’re seeing double-digit declines in job postings month over month and year over year that we haven’t seen since 2020. This moderation is welcome for many employers — who are finding it easier to fill vacancies,” Frankiewicz said.

“Time to fill roles has dropped to 49 days in November, from an average of 122 days in 2023 to date. For highly skilled roles like software developer, the time to fill has dropped by more than half, from 106 days to 29,” she added.

“We’re also seeing signs of the heavy hitter big companies taking a back seat and midsize employers with 50-249 employees having their moment — a trend that began with tech talent and is now impacting across the board,” Frankiewicz said.

October 2023

The national job rate for technology workers remained little changed in October, according to an analysis of data from the US Bureau of Labor Statistics (BLS).

The unemployment rate for tech workers in October dropped from 2.2% in September to 2.1% last month, even as there has been a cooling in the broader US job market. Technology companies and employers throughout the economy added workers to their payrolls in October, according to CompTIA, a nonprofit association for the IT industry and its workers.

Tech occupations across the economy increased by an estimated 483,000 jobs, according to CompTIA. Tech firms added an estimated 2,159 workers, mainly in IT services and custom software development, CompTIA’s Tech Jobs Report showed.

It was the second consecutive month of job growth in the sector — albeit at a modest pace.

“It’s fair to say tech employment gains for the month exceeded expectations, given the recent labor market swings,” Tim Herbert, chief research officer at CompTIA, said in a statement. “Companies continue to focus on the technologies and skills that deliver meaningful business value.”

California, Texas, Virginia, Florida and New York had the highest volumes of tech job postings among the states, CompTIA indicated. The Charlotte, Boston, San Diego, Cleveland and Phoenix markets were also active in October, with month-over-month increases in employer postings for tech jobs.

While the US market added 150,000 jobs in October, the overall unemployment rate rose from 3.8% to 3.9%, according to the US Bureau of Labor Statistics. The number of unemployed persons — 6.5 million — changed little in October. However, since their recent lows in April, those numbers are up by 0.5% and 849,000, respectively.

The uptick in unemployment and the slower pace of hiring pointed to a cooling of the employment market. In September, for example, 279,000 jobs were added to the US economy.

Becky Frankiewicz, president of staffing firm ManpowerGroup’s North America region, credited the slowdown for employees being less likely to leave for new roles than they were at the height of the pandemic. Hiring, she said, is solid but settling down.

“Our real-time data shows that in many sectors, especially blue-collar and tech, the market is finding balance,” she said. “The post-pandemic hiring frenzy and summer hiring warmth has cooled and companies are now holding onto employees.”

The tech sector is also cooling from its torrid growth over the past two or more years, but there’s still demand for highly skilled positions including app developers, cyber security experts and data analysts, Frankiewicz said.

“The most in-demand functions remain steady — with most new roles posted in medical and healthcare, sales and IT,” she said.

After a spike in the number of openings for IT professionals in the early summer, the number of unfilled openings for IT professionals fell from 201,000 in August to 160,000 in September. That reflects a pullback from the peak of 254,000 opening in July, according to Frankiewicz.

About 20% of job postings offered work from home or remote work as an option, according to CompTIA. One-quarter were for positions in emerging technologies or jobs that require emerging tech skills, including 16,000 associated with artificial intelligence (AI) jobs and skills. Employer hiring for AI positions and skills continues to trend upward, although it’s still a relatively small share of overall tech hiring activity.

Along with AI-skilled workers, software developers, IT support specialists, systems analysts, and data scientists are among the job roles in greatest demand, according to CompTIA.

Victor Janulaitis, CEO of Utah-based research firm Janco Associates, agreed AI and machine learning skills are in demand, though the number of coder openings is falling. At the same time, hiring of IT professionals is hindered by the lack of qualified individuals and a slowing economic picture.

“This will have a dampening impact on the growth of the IT Job Market size,” Janco stated in its latest tech market jobs report.

September 2023

The US unemployment rate remained at 3.8% in September, but the market added 336,000 jobs, far surpassing analyst expectations, according to today’s Bureau of Labor Statistics numbers.

Tech employment, however, was a laggard in the generally upbeat US employment report released today, according to analysis by the nonprofit trade association CompTIA. Key metrics of tech hiring activity all slipped in September, its report showed.

Tech jobs among all sectors across the economy fell by an estimated 20,000. The technology sector unemployment rate ticked up from 2.1% in August to 2.2% in September, but it remains well below the national rate of 3.8%, according to CompTIA.

Tech salaries also appeared to be on a downslope, according to an analysis by job matching site Hired, which notes that US inflation-adjusted salaries have plummeted to a five-year low.

Meanwhile, tech sector companies reduced staffing by a net 2,632 positions last month, according to CompTIA’s analysis of BLS data.

Employer job postings for future tech hiring also fell to 184,077 in September, down from nearly 208,000 in August. (Future tech hiring is defined by CompTIA as expected open requisitions.)

“Demand for software positions continues to drive the largest volume of hiring activity. In the aggregate, volumes are equally large in positions spanning IT project management, IT support, data analytics, and systems/cloud infrastructure,” CompTIA’s report stated.

Positions in emerging technologies or jobs requiring emerging tech skills accounted for 26.5% of all tech jobs postings last month, up from 22% in August. Within emerging tech job postings, 36% were associated with artificial intelligence (AI).

“There is no sugar-coating the off month of tech employment data,” Tim Herbert, CompTIA’s chief research officer, said in a statement. “Despite the persistently high demand for tech skills on many fronts and positive forward-looking projections, there is a lag in hiring at the moment.”

Jim McCoy, senior vice president of staffing firm ManpowerGroup, echoed Hebert’s sentiments on tech employment, but he said one bright sector has been smaller firms that are still dealing with a skills gap.

“To be sure, large companies have pulled back hiring and even cut workers, especially in technology, as borrowing costs have spiraled higher,” McCoy said. “But many small and midsized businesses that struggled to attract workers are snapping up those laid off and drawing from a more plentiful labor supply as Americans sidelined by COVID return to the workforce.”

The BLS jobs report showed the average hourly earnings for all employees rose by 7 cents, or 0.2%, to $33.88. Over the past 12 months, average hourly earnings  have increased by 4.2%, the report stated. In September, average hourly earnings of private-sector production and nonsupervisory employees rose by 6 cents, or 0.2%, to $29.06.

While hiring may be up overall, real wages in the technology sector appeared to be declining, according to a recent report from job matching site Hired.

In its annual State of Tech Salaries Report, released in late September, Hired said the tech talent market has seen dramatic shifts from 2022 to the first half of 2023, fueling tension and misalignment between recruiter and job candidate expectations.

Following a year of record-breaking inflation and market turbulence, local salaries in the US, including those for fully in-person or hybrid roles, have experienced their most significant year-over-year decline, dropping by 3% from $161,000 to $156,000. In contrast, salaries in the UK have seen a 4% increase, rising from £82,000 to £86,000, according to Hired.

When adjusted for inflation, local salaries decreased 9% from $141K in 2022 to $129K by mid-2023, while remote salaries decreased 6% from $143K in 2022 to $134K by mid-2023.

Amid the rise of generative AI and a tightening of corporate budgets, junior talent (workers with less than four years of experience) have experienced the most significant decrease in salaries — nearly 5% year-over-year — and demand, with posted roles on the platform lowering from 45% in 2019 to 25% in the first half of 2023, according to Hired’s report.

“Compared to last year, we are witnessing a seismic shift in tech employee and employer preferences. The surging demand for experienced tech talent on our platform and employers’ increasing reliance on AI tools point to an ever-growing skills gap. This challenge will only heighten as companies reduce their hiring locations amid their return to the office and limit their access to qualified talent,” said Josh Brenner, CEO at Hired.

“With the future talent pipeline at risk of a deficit, companies cannot afford to disregard high-quality talent at any level. Instead, they must embrace diverse candidates with transferable skills who can adeptly address industry challenges, especially amid rapid advancements driven by emerging technologies like AI,” Brenner added.

The highest paid tech workers were engineering managers, particularly with the introduction of AI tools and increased cybersecurity challenges. Engineering managers earn on average $202,000 in the US and £118,000 in the UK — a notable 10% increase from £107,000 at the end of 2022. 

Specialized engineers are the most in demand in 2023: Employers on Hired’s marketplace have a higher demand for specialized engineers, especially for AI applications such as ML, as well as cybersecurity, data, and back-end engineers.

AI isn’t an immediate threat to job security, but it could present challenges for job seekers in the coming years: While the majority of surveyed candidates (87%) currently do not view AI as the primary threat to their roles, a significant portion of employers (47%) project they will leverage AI to reduce headcounts by 2029.

Overall, there were job gains in leisure and hospitality, government, healthcare, professional services, scientific and technical services, and social assistance.

Employment in professional, scientific, and technical services increased by 29,000 jobs in September, in line with the average monthly gain of 27,000 over the prior 12 months, BLS data showed.

Victor Janulaitis, CEO of Janco Associates, identified the 10 AI skills listed most often on client open job requisitions for IT professionals. The one AI skill that was included in more than 60% of those requisitions: ChatGPT.

“Since its launch in November of 2022, ChatGPT has been implemented by the greatest number of organizations,” Janulaitis said in a blog post. “As a result, companies are recruiting IT professionals who have the skills to help them with using ChatGPT for content generation, task automation and scripting… and more.”

Other skills listed in open IT job requisitions: Natural Language Processing, TensorFlow, Image Processing, PyTorch, Generative AI content creation, Midjourney, AI Chatbot, Model Tuning, and Stable Diffusion.

PricewaterhouseCooper’s Global Workforce Hopes and Fears Survey found sizeable pockets of the global workforce eager to learn new skills, embrace artificial intelligence (AI), and tackle new challenges — even as many companies fail to tolerate debate and dissenting ideas, or even small-scale failures. Meanwhile, many workers are restless: fully 26% say they plan to quit their job in the next 12 months, up from 19% last year.

August 2023

Though they remain low, unemployment figures have seesawed over the past six months, a phenomenon that has some tech industry experts scratching their heads trying to make sense of what may be the new norm.

Last month, unemployment in technology fields increased along with the overall US unemployment rate, which rose from 3.5% in July to 3.8% in August, according to new data from the US Bureau of Labor Statistics (BLS). At the same time, total nonfarm employment across all markets increased by 187,000 jobs in August.

The mixed messages in last Friday’s employment report carried over to the tech industry and workforce, according an analysis by industry group CompTIA.

Tech unemployment had dropped from 2.3% in June to 1.8% in July, as tech firms and employers in other industries added workers after a spate of high-profile layoffs in the tech industry.

The latest BLS report, however, found that employers across the US economy reduced tech occupations by an estimated 189,000 positions, pushing the unemployment rate for tech jobs up to 2.1% — almost where it was in June, CompTIA said.

“The usual caveats of monthly fluctuations in labor market data apply,” said Tim Herbert, chief research officer at CompTIA. “The seesawing between strong and lagging tech jobs reports is undoubtedly confusing, but the overall macro trend of growth in the depth and breadth of the tech workforce remains steady.”

Employer job postings for future tech hiring (a separate category tracked by CompTIA) totaled nearly 208,000 in August, a slight decline of 1.4% from the previous month. But job postings for information security analysts increased 19% from July to August to more than 12,000 postings. Other in-demand occupations include software developers, tech support specialists, computer systems analysts, and data scientists.

“With ‘pandemic paranoia’ about hiring lingering, companies are continuing to hold onto their workers, remembering how hard it was to rehire,” said Becky Frankiewicz, president of global staffing firm ManpowerGroup’s North America Region. “Essential workers we valued through the pandemic may not be feeling so essential, as real-time job postings for blue collar roles like operations and logistics/maintenance and repair are down 43% month over month” based on ManpowerGroup’s real-time data.

“This Labor Day is a great occasion to celebrate the resilience of the American worker,” she said. “Although we are seeing a slowdown, the labor market remains healthy, and we are optimistic about the future.”

Positions in emerging technologies or jobs requiring emerging tech skills, such as artificial intelligence (AI) and data science, accounted for 23% of all tech jobs postings in August. Among emerging tech job postings, 37% were associated with AI, with California, Texas, New York, Massachusetts, and Virginia showing the highest numbers of AI-related job postings.

New data from IT staffing firm Experis found that an increasing number of companies surveyed are either adopting or planning to adopt emerging technologies in their recruiting processes. That comes as more than three quarters (78%) of IT organizations report difficulty finding talent with the right skills — a 17-year high.

According to Experis, 58% of employers believe AI and virtual reality will create jobs, not kill them. Additionally, cybersecurity, technical support, and customer experience remain high-priority IT staffing areas. Half of employers say they are training and upskilling their current workforce to address staffing challenges.

“The integration of AI, machine learning, VR/AR, and other emerging technologies is rapidly transforming industries and driving the need for an adaptable workforce,” said Experis Senior Vice President Ger Doyle. “We are seeing companies embrace these new technologies with many seeking to hire or upskill existing talent to take advantage of potential productivity gains. Smart employers know that embracing digitization and nurturing human talent will enhance their readiness to succeed in this era of rapid technological advancement.”

July 2023

The unemployment rate for tech jobs dropped from 2.3% to 1.8% in July, as technology companies and employers in other industry sectors added workers, according to analysis of US Bureau of Labor Statistics (BLS) data.

It was the lowest tech-sector unemployment rate since January, according to CompTIA, a nonprofit association for the IT industry and workforce.

The overall US unemployment rate also dropped slightly last month from 3.6% in June to 3.5%, according to BLS data. About 187,000 non-farm jobs were added, less than the average monthly gain of 312,000 over the prior 12 months. In July, jobs grew in healthcare, social assistance, financial activities, and wholesale trade, according to the BLS.

The overall unemployment rate has ranged from 3.4% to 3.7% since March 2022.

According to BLS data, employment in professional, scientific, and technical services continued to trend up in July with 24,000 positions filled.

Tech sector companies increased their staffing by 5,432 employees, according to CompTIA’s analysis of BLS data. Leading the way in new IT hires were custom software services and systems design;and PC, semiconductor and components manufacturing.

IT salaries were on the rise, too, according to a mid-year analysis by business consultancy Janco Associates, as more companies invested in IT. The emphasis in recent years has been on both e-commerce and mobile computing. And with growing numbers of cyberattacks and data breaches, CIOs are looking to harden their sites and lock down data access to protect all of their electronic assets, according to Janco Associates.

The lone drag on the July data was in employer job postings for tech occupations, which slipped to from 236,000 in June to 204,400 for the month of July.

“Given the pace of tech hiring, it remains a fairly tight market for tech talent,” Tim Herbert, chief research officer for CompTIA, said in a statement. “It continues to be an environment where employers must supplement recruiting efforts with proactive talent development strategies.”

While the drop in tech sector unemployment is notable, it’s not uncommon for rates to fluctuate, according to Herbert. Over the past 5.5 years dating back t0 January 2018, the tech unemployment rate saw a 1/2-point or higher rise or fall from the previous month 27 times, which translates to 40% of the time, he said in an email to Computerworld.

In comparison, the national unemployment saw the same kind of variation 22 times, or 33% of the time. Herbert said.

“Unfortunately, the Bureau of Labor Statistics does not provide data at a granular enough level to pinpoint the exact tech occupation categories driving changes in the unemployment rate,” Herbert said. “The employer job posting data indicates hiring activity is broad-based spanning all the major job families within tech.”

The way the BLS tracks job seekers also matters; it only keeps tabs on people actively looking for employment, Herbert noted.

“There could be scenarios whereby certain segments of workers go uncounted in the unemployment rate because they put their job search on pause — perhaps to re-evaluate their job search strategy, to pursue additional training, to recharge their batteries, etc.,” he said. “This could have the effect of artificially lowering the unemployment rate.”

There is a difference, however, between the long-term unemployed who might lack skills demanded in the labor market and those who voluntarily put a job search on hold. “My sense is tech workers in this position tend to fall in the latter category given most have in demand skills,” Herbert added.

Janco Associates painted a somewhat gloomier picture of the IT jobs landscape: it said that year to date, IT jobs shrank by 5,500 positions. That’s in contrast to 125,900 jobs created during the same period of 2022.

The number of unfilled jobs for IT pros shrank from more than 200,000 in December to just over 120,000 at the end of July, Janco’s latest report showed. It argued that the growth of the IT job market stopped in January, with a loss of 2,600 positions, with other losses piling up in succeeding months.

“Based on our analysis, the IT job market and opportunities for IT professionals are poor at best,” Janco CEO M. Victor Janulaitis said in a statement.

In the second quarter of 2023, the “big losers” were computer system design jobs (down 10,500); telecommunications (down 5,500);  content providers (down 4,700); and other information service providers (down 6,600). Janulaitis said.

Many roles, especially in telecommunications and cloud providers are being automated and eliminated, he said. CIOs and CFOs are looking to improve the productivity of IT by automating processes and reporting where possible and focusing on eliminating “non-essential” managers, staff, and services.

“Experienced coders and developers still have opportunities. The highest demand continues to be for security professionals, programmers, and blockchain processing IT Pros,” Janulaitis said.

As part of an effort to boost return on investment, CIOs are looking to consolidate the cloud service providers they support.

“This will impact the job prospects at those providers,” Janulaitis said. “There continues to be a general belief there will be an economic downturn by many CIOs and CFOs. This is impacting all decisions around hiring new IT pros and increasing technology-related expenditures. This has impacted the salaries of IT pros with a major impact on the compensation of IT executives.”

Meanwhile, according to CompTIA, the strongest demand was for software developers and engineers, IT project managers, data analysts, IT support specialists and emerging technologies. Positions in emerging technologies or jobs that require emerging tech skills accounted for about 23% of all tech job postings in July.

Within the emerging tech category, 35% of job postings referenced artificial intelligence (AI) work and skills, CompTIA said. 

June 2023

IT workers are well positioned to not only keep their jobs but to get big bumps in pay when looking for new opportunities, according to analysis of jobs data released today by the US Bureau of Labor Statistics (BLS).

Overall, the US unemployment rate dropped slightly from 3.7% in May to 3.6% in June, with about 206,000 jobs added, according to the BLS. The number of jobs added last month was down 100,000 from May.

Wages also increased as employers continued to struggle to find workers. Average hourly earnings of private-sector production and nonsupervisory employees grew 4.4% in June over the same period last year to $28.83, according to the BLS.

Tech sector companies increased headcount by 5,348 jobs last month, according to an analysis of BLS data by industry group CompTIA. Among the six top tech occupation categories, three have shown positive gains through the first half of 2023: IT and custom software services and systems design; PC, semiconductor and components manufacturing; and cloud infrastructure, data processing and hosting.

Overall, however, tech occupations throughout the economy declined by an estimated 171,000, according to CompTIA. The unemployment rate for tech jobs edged up from 2% to 2.3%, still well below the national unemployment figure.

Software developers were in particularly in high demand, according to CompTIA. Job openings had dropped by more than 2,700 positions in May, but in June software development positions rose by more than 15,700 openings. Job openings for IT project managers and data scientists also lept in June, up by 8,633 and 3,929, respectively.

Other IT positions that saw marked increases included system analysts, IT support specialists, web developers, cybersecurity analysts and engineers, and database adminitrators, according to CompTIA.

Overall, tech-related employment mirrored June’s overall easing of the labor market nationally, CompTIA said. Tech occupations throughout the economy fell back and job postings for future hiring were down modestly, with jobs offering remote/hybrid work arrangements falling off even as opportunities to work with artificial intelligence rose in the emerging job market.

“The latest tech employment figures do lag some, but the underlying fundamentals remain unchanged. All signs point to a continuation of the growth trajectory for the tech workforce,” Tim Herbert, chief research officer, CompTIA, said in a statement.

Ahead of the BLS jobs report, HR software provider ADP released its own jobs report Thursday saying private sector jobs surged by 497,000 in June, well ahead of the 267,000 gain in May and much higher than the 220,000 analysts had estimated.

“According to the Department of Labor, [ADP’s] numbers were way off,” said Jamie Kohn, senior director of human resources research at Gartner. “I do think we’re seeing a slight slowdown in jobs at the moment, but there’s such a shortage of talent, companies are trying to keep up.”

Employment rates for prime age workers — 18- to 54-year-olds — is back to pre-Covid numbers and companies are reticent to make further cuts even as economists continue to chirp about a possible recession.

“We have data that shows on median, people are getting a 15% increase when they move from one job to another,” Kohn said. “They’re actually getting higher pay bumps than they thought they would.” On average, most job seekers expect an 8% increase in pay in a new job, according to a new Gartner survey.

Another trend putting pressure on the job market is an increasing number of Baby Boomer retirements, leaving management positions and other senior jobs unfilled.

“We’re about half way through Baby Boomer [generation] retirement. The market is likely to get tighter as the latter half of the Baby Boomer generation retires over the next decade or so. Some people also retired early during and coming out of the pandemic,” Kohn said. “I’m hearing from a lot of HR leaders who are trying to figure out how to convince people to delay retirement because they’re finding it hard to find people.”

IT workers in particular are in demand, Kohn said. The Gartner survey showed 78% of job market candidates have multiple offers on the table. That compares to overall job seekers, 72% of whom had multiple job offers.

While organizations across all US industries are expected to boost hiring in the third quarter, employers in the IT market have the most aggressive hiring plans, according to global staffing firm ManpowerGroup.

Unmet demand for talent is highest in IT-related fields, with 78% of employers in IT reporting challenges in hiring, according to an earlier report from ManpowerGroup. This suggests that tech workers who find themselves laid off will soon be reabsorbed into the market.

ManpowerGroup’s real-time data is showing plentiful opportunities in logistics, job openings grew 25% this quarter, sales and business development were up 10%, medical (up 9%) and finance (up 8%).

“We’re seeing the relationship between employers and workers continue to evolve, particularly for workers with in-demand skills,” Becky Frankiewicz, ManpowerGroup’s regional president and chief commercial officer, said. “As ‘pandemic paranoia’ about hiring lingers, companies are holding on to their workers as layoffs calm and permanent roles are more in demand than temporary.”

Hybrid work is also on the uptick, with all industries offering more remote/hybrid roles month-over-month and tech remote work up 34%-40% in June, according to ManpowerGroup. And as the relentless advance of AI continues, employers are betting on people. Companies are investing in the talent and skills they have in house, with organizations re-skilling and up-skilling more than ever.

After some high-profile layoffs by tech companies this year and last, many IT workers are seeking employment in industries they consider more stable, such as financial services, according to Kohn.

Workforce participation by women remains lower than for men. A key reason for that is US employers are not as generous with flexible work, paid maternal leave and childcare assistance as their European counterparts.

“If you have to spend half or more of your income for childcare, no reason to go back to work,” Kohn said, adding that what’s needed is an overhaul of worker benefits rights by the federal government. Another wrinkle: US immigration has seen steep declines — even before the pandemic — further reducing the chance for a glut in job openings.

May 2023

Like April before it, the month of May showed mixed results for tech employment in the US.

Technology companies shed an estimated 4,725 jobs — a figure that includes nontechnical workers — in May, according to an analysis of the latest US Bureau of Labor Statistics (BLS) figures by IT industry group CompTIA. Job postings for open technology positions also eased off, down to about 234,000 from April’s 300,000, according to a new report from CompTIA.

At the same time, however, the number of technology jobs throughout the economy rose by 45,000, according to the report.

Those mixed results for the tech workforce reflect the unpredictability of the overall labor market. US employers added a stronger-than-expected 339,000 jobs in May, but the overall US unemployment rate rose by 0.3 percentage points to hit 3.7%, while the number of unemployed people rose by 440,000 to reach 6.1 million, according to BLS data released today.

Responding to the BLS data, global staffing firm ManpowerGroup also commented on the mixed results for tech pros: “Our data shows cooling in IT, with posted roles down 12% compared to last month. Yet those let go are being quickly reabsorbed, often into midsize companies.”

Indeed, while the national unemployment rate has ranged between 3.4% and 3.7% since March 2022, the unemployment rate for tech occupations has hovered near 2% throughout that time frame. In fact, tech unemployment decreased slightly in May, from 2.1% to 2.0%, according to CompTIA’s analysis of the BLS data.

“Reassuringly, the positives for the month outweigh the negatives, confirming the tech workforce remains on solid footing,” said Tim Herbert, chief research officer at CompTIA.

The most in-demand roles among tech job postings include software developers and engineers; IT project managers, data analysts, and other emerging tech roles; IT support specialists; systems analysts and engineers; and data scientists. Approximately 20% of job postings are in emerging tech fields or require emerging tech skills, including nearly 15,000 postings that mention AI skills, according to CompTIA.

April 2023

Technology companies added 18,795 workers in April, the largest number since August 2022, according to the latest US Bureau of Labor Statistics (BLS) figures and an industry analysis of that information.

The data revealed a mixed bag of results for tech workers last month. Technology jobs throughout the economy declined by 99,000 positions even as employer job postingspassed 300,000 — a level last reached in October, according to a report from CompTIA, a nonprofit association for the IT industry and workforce.

Both the overall US unemployment rate, at 3.4%, and the number of unemployed, at 5.7 million, changed little in April, according to BLS data released today. The national unemployment rate has ranged between 3.4% and 3.7% since March 2022.

The unemployment rate for tech occupations inched up to 2.3% in April from 2.2% in March, still well below the national unemployment rate, according to CompTIA’s evaluation.

“It was another all-too-familiar month of mixed labor market signals,” said Tim Herbert, chief research officer at CompTIA. “The surprisingly strong tech sector employment gains were offset by the pause in tech hiring across the economy.”

Still, IT executives and managers are among the most highly paid workers in US corporations, according to a new report based on the latest data from the US Bureau of Labor Statistics (BLS).

A BLS report published last last month — the Occupational Employment and Wages Summary for 2022 — showed computer and information research scientists earn on average about $155,880 a year. Database architects are the second-highest earners with just over $136,540 in annual compensation. Software developers followed at $132,000 a year.

Putting upward pressure on wages has been a combination of scarce tech talent and low unemployement rates.

Computer and IT managers are among the most highly paid positions in the US, earning an average $173,670 across all industries and occupations; that’s even more than the top executives in all industries and occupations ($129,050), according to business consultancy Janco Associate.

In terms of employment in the tech industry, software developers held just over 1.5 million positions in the US, more than double the 700,000 positions held by computer user support specialists. Computer systems analysts, with 500,000 jobs, were in third place, according to Janco’s report.

Late last month, job search website Lensa published a research study showing “computer occupations” are among the most in-demand jobs in the US, second only to “health diagnostic and treatment practitioners.” More than 3.1 million potential applicants clicked on open job positions in the IT arena, according to Lensa.

Overall, the number of workers not in the labor force who currently want a job increased by 346,000 over the month to 5.3 million, according to the BLS. “These individuals were not counted as unemployed because they were not actively looking for work during the four weeks preceding the survey or were unavailable to take a job,” the BLS said.

Both the labor force participation rate, at 62.6%, and the employment-population ratio, at 60.4%, were unchanged in April. These measures remain below their pre-pandemic February 2020 levels, 63.3%and 61.1%, respectively.

Global Staffing firm ManpowerGroup viewed the BLS data from April as a “promise of spring” for the job market, with a higher-than-expected 253,000 jobs added.

Employers continue to hire for in-demand skills while pulling back on non-essential headcount, the company said in a statement to Computerworld. The company also noted some negative trends that emerged with the BLS’s revisions to its March data showing 100,000 fewer jobs, “and the three-month average is tracking down.”

“Today, we’re seeing very concentrated demand with medical, IT, and sales representing 44% of all open positions,” Becky Frankiewicz. president of ManpowerGroup North America said. “That data includes all real-time available jobs across the country. [Job] openings are the lowest they’ve been in two years.”

Employers listed more than 300,000 job postings for tech positions in April, signaling demand for tech talent continues to hold up, according to CompTIA. In March, there were 316,000 tech job openings.

Within the tech sector, three occupation categories paced April hiring, led by IT services and custom software development (+12,700 additional jobs). Job gains were also reported in cloud infrastructure, data processing and hosting (+7,300 additional jobs) and PC, semiconductor and components manufacturing (+3,200 additional jobs).

Employer job postings for tech positions were widely dispersed geographically and by industry. Employers in administrative and support (32,861), finance and insurance (32,820) and manufacturing (31,959) were among the most active last month.

The number of tech job postings that specify remote work or hybrid work arrangements as an option continued to trend upward in April, with more than 65,000 positions across the country; software developers, IT project managers, data analysts and jobs in emerging technologies topped the list

Among metropolitan markets, Washington, DC, New York City, Dallas, Los Angeles, and Chicago had the highest volumes of tech job postings. And Dallas, Houston, Philadelphia, Boston and Seattle saw the largest month-over-month increases in postings, according to CompTIA.

March 2023

Tech sector employment, which includes all workers on the payrolls of tech companies, declined in March by an estimated 839 jobs, according to the US Bureau of Labor Statistics (BLS) and IT industry group CompTIA.

Employer job postings for tech positions for March, however, increased by 76,546 month-over-month, for a total of 316,000 openings; the tech unemployment rate remained unchanged from February at 2.2%.

Technology employment across all industry sectors increased by an estimated 197,000 positions for the month, according to CompTIA’s analysis of BLS data. “This represents the highest level of employer hiring activity as measured by job postings in seven months,” CompTIA said in its Tech Jobs Report.

More than 4.18 million people are now employed as IT professionals in the US, according to industry research firm Janco Associates.

“As a forward-looking indicator, the rebound in employer tech job postings is a notable positive,” said Tim Herbert, CompTIA’s chief research officer. “While caution is in order given the state of uncertainty, the data suggests segments of employers may be stepping back into the tech talent market.”

Overall, the US economy added 236,000 jobs in March, according to the BLS, a slight slowdown compared to recent months; that could mean the jobs market may be responding to recent interest rate hikes by the US Federal Reserve.

At the same time the number of jobs being added to the economy dropped slightly, the overall unemployment rate dipped a tenth of a point to 3.5%, remaining near 50-year historic lows.

IT industry advocacy group CompTIA’s March Tech Jobs Report.

The total number of unemployed US workers, at 5.8 million, changed little in March; that measure has shown little net movement since early 2022, according to BLS data.

“The labor market posted solid if not spectacular gains,” Diane Swonk, chief economist and managing director at KPMG LLP, wrote in a blog post. “Hiring in both the public and the private sectors slowed. Hiring by firms with less than 250 workers continues to drive gains in the private sector. Those firms are the most vulnerable to the recent tightening of credit conditions,”

Even as unemployment remains low, there have been a number of high-profile layoffs in the technology industry and elsewhere during the past six or so months; industry experts have said many organizations over-hired during the COVID-19 pandemic and are now having to trim their workforces, a so-called “course correction.”

This year, more than 168,000 workers have been laid off at tech firms, according to industry tracker Layoffs.fyi.

Last month, job search site Indeed fired 15% of its workforce, or about 2,200 employees. The layoffs came from nearly every team and function within the company, CEO Chris Hyams said, and were in response to a job market that has cooled “after the recent post-COVID boom,” he said.

“US total job openings were down 3.5% year-over-year, while sponsored job volumes were down 33%,” Hyams said. “In the US, we are expecting job openings will likely decrease to pre-pandemic levels of about 7.5 million, or even lower over the next two to three years.”

While big tech firms such as Google and Microsoft may be letting workers go, the layoffs aren’t dominated by IT talent. Most of the layoffs are occurring on the business side of the corporate world. In fact, there are fewer IT workers than job openings — a lot fewer.

Positions for software developers and engineers accounted for the largest share of job postings in March, according to CompTIA. Employers are also in the market for IT support specialists, systems engineers and analysts, IT project managers, cybersecurity analysts, and engineers. About one in five tech job postings offer remote or hybrid work arrangements as an option.

A new report from global staffing firm ManpowerGroup found that 77% of employers report difficultly filling job roles, representing a 17-year talent shortage high.

James Neave, head of data science at job search site Adzuna, said despite the latest spate of layoffs, which include Apple and Walmart, job growth has exceeded expectations for 12 consecutive months, “the longest streak since 1998.

“Today’s closely watched jobs report gives another healthy reading on the job market and the strength of hiring,” he said invia email to Computerworld.

On Adzuna, advertised job vacancies in the U.S. totalled 8.3 million in March. As a result, organizations need to continue working to attract and retain highly qualified talent amid shortages and skills gaps, Neave said.

“To win workers, organizations are improving their benefits and providing care for the whole person in such a stressful economic time,” he said. “Boosting benefit offerings also helps to slow staff turnover and reduce the risk of burnout, improving morale as well as the bottom line.” 

February 2023

Tech sector employment fell by 11,184 positions in February, a modest reduction of 0.2% of the total tech industry workforce of more than 5.5 million.

Unemployment in the tech sector also jumped from 1.5% in January to 2.2%, in February, according to data released today by the Bureau of Labor Statistics (BLS) and CompTIA, a nonprofit association for the IT industry and workforce.

The unemployment rate for tech occupations is still below the national rate of 3.6%, which saw a .1% increase from January.

The number of technology occupations in all industries declined by .6% or 38,000 positions, according to CompTIA’s report. Tech occupations in the US economy still total more than 6.4 million workers. Among all tech industries, tech manufacturing added a net new 2,800 jobs, the fifth consecutive month of positive gains.

Employer job postings for tech positions also declined by about 40,000, to just over 229,000 in February. Most metropolitan markets experienced fallbacks from January to February, with a few exceptions, according to CompTIA.

“As expected, the lag in labor market data means prior layoffs announcements are now appearing in BLS reporting,” said Tim Herbert, chief research officer for  CompTIA. “Context is critical. The recent pullback represents a relatively small fraction of the massive tech workforce. The long-term outlook remains unchanged with demand for tech talent powering employment gains across the economy.”

While there have been hundreds of highly publicized layoffs among tech companies, the vast majority of employees being fired are not in IT positions, according to industry analysts. In fact, there remains a dearth in tech talent to fill more than 145,000 IT job openings. 

IT consultancy Janco Associates offered a somewhat more pessimistic view of the IT job market.

“Layoffs, for the most part, did not hit developers. Rather they were focused on data center operations, administrative and HR roles related to recruiting, and DEI (diversity, equity, and inclusion). Some roles, especially in telecommunications and data center operations are being automated and eliminated,” Janco CEO Victor Janulaitis said in a statement. “Driving this is CIOs and CFOs who are looking to improve the productivity of IT by automating processes and reporting where possible. They are focusing on eliminating non-essential managers and staff. They will continue to hire coders and developers.”

The highest demand, Janulaitis said, continues to be for security professionals, programmers, and blockchain processing IT professionals. Other industry research shows data analysts and AI professionals are also in high demand. 

“The general belief there will be an economic downturn is high for many CIOs and CFOs. This is impacting all decisions around hiring new IP pros and increasing technology-related expenditures,” Janulaitis said.

In 2022, 267,000 new jobs were added to the IT market. Those new jobs were in addition to the 213,000 jobs created in 2021.

In 2023, while there are more jobs being added, that number is declining. In January, for example, for the first time in 25 months, there was a net loss in the number of jobs in the IT Job Market. That trend is continuing, Janco said. In the first two months of 2023, the IT job market shrank by 44,900 jobs.

“CIOs and CFOs have started to slow the rate of creating new IT jobs and hiring IT professionals,” Janco said in its report. “The three month moving average for IT job market growth trend for IT professionals shows a significant downward trend. Inflation and recessionary trends are driving this.”

Layoffs and economic uncertainty drove CIOs and CFOs to slow IT hiring in February, according to Janulaitis.

“Layoffs at big tech companies are having an adverse on overall IT hiring. More CIOs are looking at a troubling economic climate and are evaluating the need for increased headcounts based on the technological requirements of their specific business operations,”Janulaitis said.

The growth of the IT job market stopped with a decline of 10,000 jobs in January and 13,400 jobs in February, according to Janco. That was the first loss in the number of IT Pros employed in over 27 months. The three-month moving average of IT job market growth went negative with a trend line that shows a further decay in IT job market growth.”

Overall US employment rose by 311,000 jobs in February, the Bureau of Labor Statistics (BLS) said. That was vastly higher than the 225,000 jobs predicted by economists polled by the Wall Street Journal. In January, about half a million jobs were added, according to BLS data.

The number of people quitting jobs (3.9 million) decreased, in February, while layoffs and other firings (1.7 million) increased. Even with the unemployment rate ticking up slightly, are still nearly two jobs (10.8 million) for every unemployed worker (5.9 million), according to a BLS data. In 2022, the annual average number of job openings was 11.2 million.

Last month, U.S. consumer spending also rose to its highest level in over nearly two years.

Across all industries, the number of people who were without jobs for a short period of time (less than 5 weeks) increased by 343,000 to 2.3 million in February, offsetting a decrease in the prior month. The number of long-term unemployed (those jobless for 27 weeks or more), changed little in February and accounted for 17.6% of the total unemployed or 1.1 million people.

Job postings for technology positions rose the most in scientific and tech services industry sector (35,257), finance and insurance (24,735) and manufacturing (20,246).

Overall, in the US job market, the average hourly earnings grew 4.6% year-over-year, which was down from last year but above the pre-pandemic pace, BLS data showed.

The ongoing tech talent shortage also lifted IT salaries, but future pay increases will be less than expected, according to Janco Associates.

On average, IT salaries rose by 5.61% in 2022 and were expected to increase by as much as 8% this year, according to earlier reports by Janco. 

“Many CIOs’ 2023 IT budgets planned to increase salaries for IT pros to address the inflationary pressures faced by employees are now being reviewed,” Janulaitis said. “Given these facts, we believe that median salaries for IT pros in 2023 will be 3% to 4% salary above 2022 levels, not the 7% to 8% that was budgeted.” 

The mean compensation for all IT pros in 2023 is now $101,323; for IT pros in large enterprises it tops $102,000; and for executives it averages $180,000.

“Companies that do not live up to employees’ expectations may find that even if they are able to get candidates in the door, those candidates leave as soon as a better offer comes along,” Gartner Research analyst Mbula Schoen wrote in a Q&A post this week.. “Additionally, there are increasingly opportunities for IT jobs outside traditional tech companies, so it’s important to look beyond just the tech provider community to truly grasp the state of the tech talent crunch.”

January 2023

The unemployment rate in the technology job market decreased for the second month in a row, dropping to 1.5% in January from 1.8% in December.

Even with the marked drop in unemployment, it was a mixed bag for the technology marketplace, after the U.S. Bureau of Labor Statistics (BLS) issued its January jobs report on Friday. There was a decline in current employment and an increase in employer job postings for potential future hiring, according to CompTIA, a nonprofit association for the IT industry and workforce.

While the overall US unemployment rate dropped to a figure not seen since 1969 (to 3.4%, from 3.5% a month earlier), the number of technology workers hired in January fell into negative territory for the first time in more than two years. Technology occupations throughout the economy declined by 32,000 for the month, representing a reduction of -0.5%, according to CompTIA. Technology companies also shed 2,489 positions in January, according to CompTIA.

Overall, however, the US added 517,000 jobs in January, according to BLS numbers.

The BLS also said on Friday it had significantly revised its November data, describing it as a “major revision reflecting content and coding changes.”

In November 2022, the BLS indicated U.S. technology companies added approximately 2,500 net new jobs versus the mistakenly reported decrease of 151,900 jobs in earlier reporting.

“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,” CompTIA said.

ComTIA also uses employer online job posting data to predict the number of job postings for future tech hiring, and that number reversed last month’s dip and increased by 22,408 to 268,898 for 2023.

The fact that the unemployment rate in the tech market still dropped in January indicates many laid off workers were re-hired and absorbed back into the labor market, according to CompTIA. The tech unemployment rate is also an indication that many of the layoffs occurring within technology organizations are non-technical workers, such as sales, marketing or related business support positions.

Among industries, the highest volumes of job postings for tech positions were reported in the professional, scientific and technical services (40,712), finance and insurance (30,576) and manufacturing (24,269) sectors.

“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,” Tim Herbert, chief research officer at CompTIA said in a statement. “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.”

While tech companies shed employees over the past few months in highly publicized reports, overall, 2022 saw an increase of about 264,500 new jobs to the IT job Market, according to IT industry consultancy Janco Associates.  Those new jobs were in addition to the 213,000 jobs created in 2021. 

In January, the growth of the IT job market stopped with a decline of 4,700 jobs.  That was the first loss in over 27 months, according to Janco. The three-month moving average of IT job market growth went negative with a trend line that shows a further decay in IT job market growth. At the same time, there is an excess of 109,000 unfilled jobs for IT Pros due to a lack of qualified candidates.

A lack of qualified candidates has lead to increased demand for tech workers raising overall salaries for all IT positions by 5.6%, with small-and-medium-sized businesses seeing an average increase of 7.74% increase, with their median compensation increasing to $100,434 as reported in Janco’s 2023 IT Salary Survey.

U.S.-based employers announced 102,943 cuts in January, a 136% increase from the 43,651 cuts announced in December, according to global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc. That’s 440% higher than the 19,064 cuts announced in the same month in 2022, according to Challenger, Gray & Christmas’s report. Forty-one percent of January’s job cuts were in tech.

Yet demand for those to fill jobs requiring tech skills is rising.

“That’s a ton of expertise missing from an industry that needs the brightest to get brighter,” said Vince Padua, CTO at Axway, a tech company that sells an API management platform.

And it’s going to get worse, he added, as 86% IT leaders expect an expertise gap increase in coming years.

“As cloud computing, AI and microservices are developed and adopted, the skills required to support them constantly evolve,” Padua said. “Companies need more employees with the right skills and experience – plus IT infrastructure and enterprise software experts with specialized skills in cybersecurity, data analytics and cloud architecture.”

IT jobs took the top spot in a list of the 25 best jobs in the US, according to online job site Indeed. The top job slot went to full stack developer, which offers a median annual salary of $130,000 and allows for a mostly remote or hybrid workplace..

Eight tech jobs were among the top 10 positions on Indeed’s list this year; that compares with just two tech jobs in the top 10 on last year’s list. In 2022, tech jobs were moving down the top jobs list; now, a year later, tech jobs are surging upward. This year, 11 of the top 25 jobs, or 44%, were tech positions. By comparison, in 2022, just 25% of the top 25 jobs were tech-related.

“Based on our analysis, the IT job market and opportunities for IT professionals are there but not in as broad in scope as in 2022. Layoffs, for the most part, did not hit developers.  Rather they were focused on data center operations, administrative and HR roles related to recruiting, and DEI (diversity, equity, and inclusion),” said Janco CEO Victor Janulaitis.

Some roles, especially in telecommunications and data center operations are being automated and eliminated, Janulaitis noted, but those operations will continue to hire coders and developers.

The highest demand continues to be for security professionals, programmers, and blockchain processing IT professionals, according to Janco. Currently, there are over 109,000 unfilled jobs in the IT job market — a drop from 216,000 in November.

Janulaitis blamed continued concern over a possible recession as one reason organizations are eliminating jobs.

“More CIOs are looking at a troubling economic climate and are evaluating the need for increased headcounts based on the technological requirements of their specific business operations,” Janulaitis said.

According to the latest BLS data analyzed by Janco, there are now just over 4.2 million jobs for IT Professionals in the US., and layoffs at big tech companies are having an adverse on overall IT hiring.

“The possibility of the economic downturn is very likely and is impacting all decisions that increase technology-related expenditures. Work from home is being minimized as companies are requiring employees to be in the office at least 3 to 4 days a week,” Janulaitis said. “Mid-level managers are now having to justify most positions where the IT Pro is not working in the office.  Companies that are forced to hire replacements, do so with the caveat that payroll costs remain flat. “

The 2023 IT budgets increased salaries for IT pros to address inflationary pressures faced by employees.  Those are now being reviewed. Given those facts, Janco believes that median salaries for IT Pros in 2023 will be 3-4% salary above 2022 levels, not the 7% to 8% that was budgeted at the end of 2022.

“With this as a background, Janco has just revised downward its forecast for the growth of the IT Job Market in 2023 to just over 160,000 from 174,000 new jobs,” Janulaitis said. “That will be less growth than in 2021 and 2022 but still at high levels.”

December 2022

Even as some high-profile layoffs have lead the news over the past few months, the US added 223,000 jobs in December, including 17,600 positions at tech companies, according to the US Bureau of Labor Statistics (BLS) and other research.

Technology job gains were recorded in four of five sector categories. It’s the 25th straight month of net employment growth in the tech industry, according to a report by CompTIA, a nonprofit association for the IT industry and workforce.

The overall US unemployment rate dropped from 3.7% in November 2022 to 3.5% in December, according to BLS data. In the technology sector, the unemployment rate dropped from 2% in November to 1.8% in December, according to CompTIA.

“Another wave of positive tech employment data speaks to the many moving parts of a complex labor market,” Tim Herbert, chief research officer at CompTIA, said in a statement. “Despite the layoffs there continues to be more employers hiring tech talent than shedding it.”

CompTIA’s analysis also showed that 30% of all tech jobs postings are for positions in emerging technologies, such as artificial intelligence, or in roles requiring emerging tech skills.

Within the tech sector, three occupation categories lead December hiring: IT services and custom software development (+7,200 jobs), other information services, including search engines (+6,600 jobs) and data processing, hosting and related services (+5,600 jobs).

CompTIA

The positive news was countered by a second consecutive month of lower employer job postings for future tech hiring. Future tech hiring is one metric CompTIA uses to predict how many job openings will be available over the next year. Future tech hiring declined for the second consecutive month, but still totaled more than 246,000 in December, down from 270,000 in November, 2022.

Also, the organization cautioned, recent layoff announcements by technology companies may not show up immediately in government reports, such as today’s BLS “employment situation” report, a CompTIA spokesperson said.

In spite of that, in the first quarter of 2023, the IT industry will lead all others in hirings, according to a new report from global staffing firm ManpowerGroup.

While companies are expected to hire fewer technology workers this quarter than the previous one (6% less) or even Q1, 2022 (14% less), ManpowerGroup’s survey of just under 39,000 employers in 41 countries revealed overall there will be a 23% increase in hiring.

ManpowerGroup

When considering how staffing levels will change during the first quarter, employers in 39 of 41 countries and territories surveyed anticipate a net positive hiring outlook, the report stated.

Organizations in the IT industry reported the most optimistic outlook for Q1, 2023 with an expected 35% increase in hiring; that was followed by Financials & Real Estate (28%), and Energy & Utilities (+26%).​

Geographically, North American organizations expect to increase hiring by 31%; US organizations expect a 29% increase in hiring and Canadian organizations expect at 34% increase. Large organizations with more than 250 are more than twice as optimistic as small businesses (with less than 10 employees) to hire in the coming quarter with outlooks of 29% and 13%, respectively.

Wanting to hire is one thing and actually being able to find tech talent is another. Currently, there is a dearth of tech talent available.

Despite strong optimism to hire, the industry faces a talent shortage where 76% of IT industry employers report difficulty finding the hard and soft skills needed, according to ManpowerGroup’s survey.

“This recovery is unlike any we have ever seen [and] demand for skills is at record highs in many markets, and unemployment levels remain high while workforce participation stagnates,” the report said.

ManpowerGroup

Because of the lack of available talent, the lead time for filling an open IT position is now several months, according to a new report by business consultancy Janco Associates.

“If the position to be filled is a replacement for some who has left the enterprise, training time has to be factored in. This is just one of the issues faced by CIOs,” Janco stated in its 2023 IT Salary Survey, which included interviews more than 142 CIOs, CFOs, and HR professionals to identify key CIO staffing Issues

Organizations have addressed hiring challenges by removing college degree requirements from job postings and by creating apprenticeship programs to train new candidates.

“With the limited labor supply of IT professionals, every hiring mistake is magnified,” Janco’s report stated.

Janco Associates

In Janco’s review of hiring failures based on survey responses, it found two factors that stood out over others. Interpersonal issues associated with these failures (29%) and poor corporate culture fit (28%) with the others. Those issues, Janco argued, can mostly be filtered out during the recruiting and interviewing process.

November 2022

For two straight years, the technology sector has added jobs every month.

In November, US tech companies added 14,400 workers, and tech jobs in all industry sectors grew by 137,000 positions, according to a new report from CompTIA

While the needle on overall US unemployment remained unchanged in November at 3.7%, for the technology sector it dropped to 2% from 2.2% in October, according to Bureau of Labor Statistics figures compiled by CompTIA, a nonprofit association for the IT industry and workforce.

CompTIA

So far this year, tech industry jobs grew by 207,000 positions, according to BLS data.

“The hotter-than-anticipated tech jobs report confirms there are still many more employers hiring tech talent than shedding it,” said Tim Herbert, CompTIA’s chief research officer. “It’s certainly premature to dismiss concerns over the health of the economy, but this should be a reassuring sign for the tech workforce.”

The growth in the tech sector belies an economy beset by high inflation and what many still believe is an impending recession. And although inflation slowed to 7.7%, it is still well over the 2% target set by policymakers at the Federal Reserve Bank.

In November, nearly a dozen big name companies announced layoffs — some in the thousands, including Amazon, Cisco and HP. But experts believe the targeted layoffs, which have been ongoing over the past three months, are mostly a result of poor hiring strategies.

Due to a dearth of tech talent over the past two years, companies rushed to hire, bringing in a raft of tech workers with seven to 10 years’ experience and highly specialized skills.

On top of that, the companies tended to pay two to three times more than what they would have for someone with less experience but with the right education, aptitude, and attitude to be part of a sustainable workforce, according to Tony Lysak, CEO of The Software Institute, which offers IT consulting and education services.

“We need them, and can’t get them, so let’s pay more,” said Lysak, summing up how many companies have approached hiring during the past two years.

According to IT employment consultancy Janco Associates, the latest BLS data shows there are now just shy of four million jobs for IT professionals in the US. Janco sees this trend of IT jobs increases continuing but at a slower pace in the future. Layoffs will continue as companies seek to improve productivity levels.

“Based on our analysis, the IT job market and opportunities for IT professionals will continue to be positive but not as broad in scope as in the first three quarters of this calendar year,” Janco CEO Victor Janulaitis said in a statement. “CIOs and CFOs are looking to improve the productivity of IT. They are focusing on eliminating ‘non-essential’ managers and staff. They will continue to hire coders and developers. The highest demand continues to be for programmers, blockchain processing, and security professionals. There still are over 200K unfilled jobs in the IT job market.”

IT salaries for existing IT staff and middle managers increased by just under 3% while new hires were paid 5% to 6% more than existing staff, according to Janco’s Mid Year 2022 IT Salary Survey. “In conversation with several CIOs, we observed that starting pay rates for new hires were in the 8% to 10% range a few months back, but this is not the case currently,” Janulaitis said.

November hiring by technology companies was broad-based across occupation categories, led by IT services and custom software development (+8,100). Employment growth also occurred in data processing, hosting and related services (+4,100), other information services, including search engines (+2,100), and computer and electronic products manufacturing (+1,900).

CompTIA

Employer job postings for future tech hiring fell back in November, but still totaled nearly 270,000. Openings for software developers and engineers accounted for about 28% of all tech jobs postings. Demand for IT support specialists, systems engineers, IT project managers, and network engineers was also solid.

While major tech hubs recorded the largest numbers of job postings for tech positions, ‘under the radar’ markets showed notable increases in employment opportunities, including Topeka, Kan.; Virginia Beach, Va.; Worcester, Mass.; and Riverside, Calif. Among industries, the professional, scientific, and technical services sector had the most tech job postings (41,188), followed by finance and insurance (35,132) and manufacturing (31,036).

CompTIA

CompTIA’s analysis also showed 30% of all tech jobs postings are for positions in emerging technologies, such as artificial intelligence, or in roles that require emerging tech skills.

Janco’s report also shows corporate executives are challenged by inflation and the economic downturn. Those executives are reluctant to hire replacement employees at salaries that are significantly higher than those who left as part of the Great Resignation. In their 2023 salary budgets for IT pros, “CIOs are trying to address the inflationary pressures faced by employees. We believe that starting salaries for IT Pros in 2023 will be 6% to 7% salary above existing levels,” Janulaitis said.

October 2022

Tech firms in October hired between 15,300 and 20,700 workers (depending on who’s doing the counting), marking roughly two straight years of hiring growth in the industry, according to two new employment reports.

So far this year, tech industry employment has increased by 193,900 jobs, 28% higher than the same period in 2021, according to a jobs report from CompTIA, a nonprofit association for the IT industry and workforce. 

In contrast, technology job postings by tech and non-tech companies had been on a five-month downward slide until last month. Tech workers employed throughout the economy, regardless of industry, declined by 116,000 last month, according to CompTIA. CompTIA’s report is based on the latest US Bureau of Labor Statistics (BLS) data.

“The data is roughly in line with expectations,” Tim Herbert, chief research officer at CompTIA, said in a statement. “Tech hiring activity remains steady, but there are undoubtedly concerns of a slowing economy.”

CompTIA

In October, the number of tech workers employed throughout all industries grew by 10,000 over the previous month, according to CompTIA.

Most of the issues affecting the economy are due to supply chain problems, according to Victor Janulaitis, CEO of Janco Associates, which also released its IT jobs report on Friday.

“If China opens up and supply chains will improve, that should lessen the recessionary pressures that are driving the tech giants to reduce staff,” Janulaitis said in a statement. “Also, the results of the election in the US will provide an opportunity to improve the economic climate.”

Tech job postings reflect the total of “help wanted” ads companies listed last month. There were 317,000 such postings in October, according to CompTIA. It was the first time since April 2022 that the number of job postings increased over the prior month.

CompTIA also noted that tech manufacturing employment is up 43% compared to the same period last year.

CompTIA

While the tech industry unemployment rate ticked up slightly to 2.2% in October from 2.1% in September, it remained well below the overall US unemployment rate, according to CompTIA’s report. The overall US unemployment rate also ticked up to 3.7% in October.

CompTIA’s jobs report differs somewhat from Janco Associates’s figures. Janco reported 15,300 new hires by tech companies in October; that compares to 13,700 job listings added by the tech industry the previous month.

There are now a total of 3.98 million jobs for IT professionals in the US, according to the BLS data analyzed by Janco.

“Based on our analysis, the IT job market and opportunities for IT professionals will continue to be positive, but not as broad in scope as in the first three quarters of 2022,” Janulaitis said in a statement. “CIOs and CFOs are looking to improve the productivity of IT.  That means they are focusing on eliminating “non-essential” managers and staff. They will continue to hire coders and developers.”

CompTIA

The highest demand in IT will be for programmers, blockchain processing, and security professionals, according to Janulaitis. Much of the hiring will be limited to filling positions that have been approved and are unfilled — not staff expansion.

Within the tech industry, the bulk of new hiring occurred in three sector categories, according to CompTIA:

• IT services and custom software development (+8,800)
• Other information services, including search engines (+6,800)
• Computer and electronic products manufacturing (+5,400)

In Janco’s mid-year 2022 IT Salary Survey, it found IT salaries for existing IT staff and middle managers increased by just under 3%, while new hires were paid 5% to 6% more than existing staff.  “In conversation with several CIOs, we observed that starting pay rates for new hires were in the 8%-10% range a few months back, but this is not the case currently,” Janulaitis said.

The disparity in pay between veteran IT workers and new hires is a point of contention and has likely led to some problems in worker motivation, according to Sinem Buber, lead economist with ZipRecruiter. When new employees are hired, they often come in with pay and benefits equal to or better than veteran employees. Even as companies have raised wages, it’s often across the board, ignoring seniority.

“So, the link between hard work and raises is broken,” Buber said.

CompTIA Remote work hiring trends on the upswing

Remote work shows no signs of slowing down, according to CompTIA. Employer job postings for tech positions that specify remote work or work-from-home options continue to increase, with a year-to-date rate of 34% compared to 27% in 2021, and 22% in 2020.

Major tech hubs saw significant month-over-month increases in tech jobs postings, including Boston (+2,732), New York City (+1,459), San Francisco (+884) and San Jose (+864). The top industries for tech job postings were professional, scientific, and technical services (50,688); finance and insurance (35,500); and manufacturing (34,488), according to CompTIA.

Positions for software developers and engineers led the October job postings (85,796). “There is also strong demand for IT support specialists, IT project managers, systems engineers and network engineers,” CompTIA said.

September 2022: Janco analysis

IT job growth has continued each month for over a year, and in the last 12 months 202,800 jobs have been added, according to the latest US Bureau of Labor data, which was analyzed by IT consultancy Janco Associates.

At the same time, CIOs and CFOs have started to slow the rate at which they’re creating new IT jobs and hiring due to inflation and recession fears, according to Janco’s latest report.

“Based on our analysis, the IT job market and opportunities for IT professionals will continue to be positive, but not as broad in scope as in the first nine months of 2022,” said M. Victor Janulaitis, CEO of Janco Associates. “CIOs are still posturing to hire staff and expand technologies to address blockchain processing and security applications based on market conditions. However, most hiring will be limited to filling positions open due to attrition, not staff expansion.”

U.S. tech firms added workers for the 22nd consecutive month, and companies across the economy hired an estimated 84,000 new tech workers in September, according to the latest Tech Jobs Report from CompTIA.

Job postings for new hiring were down 12% from August, but still totaled just over 300,000. Positions in software development and engineering, tech support, tech project management, systems engineering, and network engineering were in highest demand, according to CompTIA.

CompTIA

About 30% of all postings were for positions in emerging technologies or in jobs that require emerging tech skills. Positions that offer remote work or work from home as an option surpassed 109,000.

Another new report by UK-based job search engine Hired showed that, unlike 2021, when companies were hiring faster than in years prior, the overall time to hire job seekers in 2022 slowed across the US, UK, and Canada. UK companies are now taking 68 days on average to fill open positions. US companies aren’t moving much faster, taking 60 days (up from 52 days in 2021). In Canada, it’s now 54 days. (Remote roles took 40 days to fill – that’s slower than in 2021, but the shortest time to hire overall, Hired said.

“Why? It’s not clear yet,” Hired said in its report. “Are jobseekers taking longer to evaluate opportunities? Or are employers moving candidates through the funnel more carefully? While this indicates an increase in the time to fill roles, it doesn’t equal an overall slowdown in tech hiring.”

Data from Hired indicates employers offering remote roles have a hiring edge over those requiring hybrid or on-site jobs. Since June 2021, candidates showed a preference for remote-only roles.

In January, 18% of active jobseekers indicated they only wanted remote roles. By May, preference for “only remote” roles climbed to 31% of all active jobseekers on Hired’s platform, and rose another percentage point to 32% in June. By June, 93% of candidates showed a preference for remote or hybrid jobs.

Janco Associates

Throughout the year, IT salaries in the US and Canada (except for junior candidates with less than two years of experience) saw significant growth. Mid-level US candidates with four to six years of experience saw the biggest jump from $146,000 to $154,000 between 2021 and 2022. Remote salaries for all candidates, except the most junior, also saw significant growth; on average they jumped by $7,000 to $8,000 from 2021 to 2022.

CompTIA September 2022: CompTIA analysis

Tech companies added 25,500 workers last month, one of the strongest hiring months so far this year, according to new data from the US Bureau of Labor Statistics (BLS) and industry analysts.

So far this year, employment in the tech industry has increased by 175,700 jobs, 46% ahead of 2021 — and 92% ahead of 2019, according to CompTIA, a nonprofit association for the IT industry and workforce. (The total includes all employees —technical and non-technical — on the payrolls of tech companies.)

“Stability in tech hiring continues to be an over-arching theme this year,” said Tim Herbert, chief research officer at CompTIA. “Despite all the economic noise and pockets of layoffs, aggregate tech hiring remains consistently positive.”

According to the latest BLS data, analyzed by IT consultancy Janco Associates, there are now 3.97 million jobs for IT Professionals in the US. For 24 months in a row, there has been an increase in the number of jobs added to the IT job market. Janco sees this trend continuing, according to its latest report released Friday.

CompTIA

The unemployment rate for tech occupations rose to 2.3% in August from 1.7% in July, according to CompTIA. There are likely two reasons for it jump: the overall US unemployment rate increased, as well, and some large tech firms announced layoffs, Herbert noted.

“The other component is we’ve seen a rebound in consumer confidence and worker confidence,” Herbert said. “So, it can also be attributed to tech workers feeling a renewed sense of confidence, and so they’ve quit their job and they’re looking for new opportunities. That was far more prominent earlier this year and last year with the ‘Great Resignation.’”

The number of workers quitting their jobs remained above 4 million in August, according to BLS data. Since June 2021, more than 4 million people have quit every month, according to BLS data, giving rise to the trend known as the Great Resignation. The trend reflects a deep dissatisfaction by many workers with their employment situations. The ongoing global pandemic pushed workers to rethink their careers, work/life balance, long-term goals, and working conditions.

Overall employer job postings for tech positions eased in August to just under 320,000 from 372,000 in July, with 31% of jobs posted last month for positions in emerging technologies, such as artificial intelligence, machine learning and IoT, or in roles that require emerging tech skills, such as data analytics and automation software.

“A lot of the technology is mature enough now that a lot of positions are implementing automation solutions, robotic process automation,” Herbert said. “Next-generation roles include cybersecurity, and broad categories of automation, so, marketing automation and HR automation.”

From January through August 2022, tech job postings where employers specify remote work or work from home as an option were up 56% over last year —and up 281% from the pre-pandemic year of 2019, according to CompTIA.

“The one thing that jumped out at me, to no surprise, was the trend toward remote work that I think is now in a semi-permanent state,” Herbert said.

The increase in remote employment was highlighted by the leap in tech job postings in states such as Wyoming, Montana and Alaska, Herbert said.

CompTIA

Even as hiring was up, the number of job openings dropped, indicating the pace of new job vacancies could be slowing, according to Janco Associates. Its data is based on the latest BLS statistics.

There is some slowing in hiring as fears of a significant downturn or recession are on the horizon, Janco’s report stated.

“CIOs and CFOs now are more cautious than they were in the first quarter.  CIOs do not have a clear understanding of how a downturn will impact their bottom line.  Most still are hiring but at a slower pace,”Janco CEO M. Victor Janulaitis wrote in the report. “Some companies have stopped hiring and started laying off employees.”

“With all that, the IT job market remains tight with an average of 200,000 IT professionals jobs that are not filled due to a lack of qualified candidates,” Janulaitis continued. “The number of unfilled IT jobs has peaked from over 260,000 in April to 210,000 in July. That should still be enough of a buffer to keep hiring of IT pros on a positive track.”

Janco Associates

Janulaitis also said new IT hires are on average receiving salaries that are 5% to 6% above pay for existing positions — and in some cases as much as 10% higher; The higher starting pay is needed to attract the best IT candidates. That salary disparity, however, is driving dissatisfaction and an increase in attrition rate among existing employees, according to Janulaitis.

“The challenge CIOs face will be how to keep the balance between the existing budget, providing salary increases to existing employees that address inflation and higher commuting costs, and having sufficient resources available to achieve the enterprise’s technology and bottom line objectives,” Janulaitis said.

The BLS doesn’t track tech industry jobs directly. Instead, the agency uses the “information sector” as a proxy for tech employment because there are tech jobs in most industries, and therefore technology is not an industry in and of itself.

The nation’s unemployment rate rose from 3.5% to 3.7% in August, with the number of unemployed rising by 344,000 to 6 million. 

Overall, the US economy added 315,000 jobs in August, which was more than economists had predicted, but still far less than the 526,000 positions added in July – a record month for jobs.

Professional and business services added 68,000 jobs in August, according to the BLS. Within the industry, computer systems design and related services added 14,000 positions; management and technical consulting services grew by 13,000; and scientific research and development services increased by 6,000. Over the past 12 months, professional and business services has added 1.1 million jobs, according to the BLS.

“CIOs and CFOs now are more cautious than they were in the first quarter. CIOs do not have a clear understanding of how a downturn will impact their bottom line,” Victor Janulaitis, CEO of Janco Associates said in a report last week. “Most still are hiring, but at a slower pace. Some companies have stopped hiring and started laying off employees.”

With all that, the IT job market remains tight, with an average of 200,000 IT professional jobs that are not filled due to a lack of qualified candidates, according to Janulaitis. If there is a major recession, many companies will choose not to fill those new open positions.

“That should be enough of a buffer to keep the hiring of IT pros on a positive track,” he said.

August 2022

Despite a number of sizeable layoffs at high-profile companies in recent months, the tech sector continued to lead all others in low unemployment rates in July, according to a new report from CompTIA, a nonprofit association for the IT industry and workforce.

Tech occupations across all industry sectors increased by an estimated 239,000 positions last month, according to an analysis of US Bureau of Labor Statistics (BLS) data by CompTIA.

Tech industry employment saw a net gain of 12,700 workers, the 20th consecutive month of growth. So far this year, the tech sector has gained 143,700 jobs, an increase of 55% year-over-year, according to CompTIA. The unemployment rate for tech jobs was just 1.7% in July (1.3% for women, 1.8% for men), roughly half the overall US unemployment rate of 3.5%.

Employer job postings for tech positions approached 484,000 in July, a slight decrease from the previous month but still at a near record level. Through the first seven months of 2022, US companies listed approximately 3.1 million jobs postings for tech positions, up 49% compared to 2021.

“The tech jobs market has repeatedly outperformed in the face of real and perceived economic weakness,” Tim Herbert, chief research officer at CompTIA, said in a statement. “The data confirms that for every layoff announcement there are other employers stepping in to take advantage of tech talent hiring opportunities.”

CompTIA

Meanwhile, since June 2021, more than 4 million people have quit their jobs every month, according to BLS data, part of a trend known as the Great Resignation. The trend  reflects a deep dissatisfaction by many workers with their employment situations. The ongoing global pandemic has enabled workers to rethink their careers, work/life balance, long-term goals, and working conditions.

Some of the top reasons workers quit this year are unhappiness with how their employer treated them during the pandemic (19%), low pay or lack of benefits (17%), and a lack of work-life balance (13%), according to a survey by employment listing website Joblist.

The BLS doesn’t track tech industry jobs directly. Instead, the agency uses the “information sector” as a proxy for tech employment because there are tech jobs in most industries, and therefore technology is not an industry in of itself. 

CompTIA

Within the tech sector, three occupation categories recorded job growth in July – other information services, including search engines (+6,800); data processing, hosting and related services (+4,100); and computer and electronic products manufacturing (+3,300). Hiring in the IT services and custom software development category was flat, while telecom-related occupations declined (-1,400), according to CompTIA.

About one in five tech job postings in July were for positions requiring two years or less of experience. About half specified three to five years of experience, while 13% sought candidates with nine or more years of experience, CompTIA said.

Many employers, even those in tech industries, are ending college degree requirements for many job openings. Instead, organizations are focusing on the skills, experience, and personality traits of job candidates. The sea change opens up tech jobs to a more diverse pool of candidates.

CompTIA

Software developers and engineers are the most in-demand positions employers are looking to fill — accounting for nearly 148,000 job postings last month. There is also a strong job market for IT support specialists, IT project managers, systems engineers and architects, and network engineers and architects. Positions in emerging technologies or jobs requiring emerging tech skills accounted for one-third of all postings in July.

Faced with a dearth of workforce talent, many tech companies and others are hiring through non-traditional approaches that include coding bootcamps, low-code training, and a focus on population areas outside the norm.

July 2022

Over the past three months, IT job openings for entry-level positions have declined significantly, according to a new report.

Job openings for entry-level tech workers declined from 29,500 in April to 24,000 in May and to 18,400 in June, according to IT employment consultancy Janco Associates.

Janco’s report, which was compiled from US Bureau of Labor Statistics (BLS) and survey data, said the downward trend is the result of several factors — the most critical of which is an increasing belief among C-level executives that we are already or soon will be in a recession.

In creating its May forecast for future IT hiring, Janco found that almost all 217 CIOs it surveyed are planning on:

• Limiting the extension of existing contracts for contract workers and consultants beyond the 3rd quarter of the year.
• Managing the full-time employee headcount to budgeted levels through the end of this year.
• Not replacing departing employees who do not have critical IT skills and/or enterprise-specific operational knowledge.

“In our interviews, we have found that Wall Street has stopped hiring, and a number of job offers for recent IT college graduates have had offers that were extended pulled back,” Janco’s report stated. “The initial indicators from the monthly BLS data for June seem to be reinforcing those findings.”

Janco’s report noted that some organizations have already started the process of layoffs.

• Netflix, PayPal, Getir, Klarna, Bolt, and Carvana instituted layoffs in May.
• Coinbase will cut 1,100 jobs, about 18% of its global workforce.
• Microsoft is slowing down its hiring “to better align its resources.”
• Meta (Facebook) and Twitter have frozen hiring for some departments.

Gartner research shows that just 4% of US companies have started laying off employees, while 7% have frozen hiring and 15% have started to slow down hiring.

Janco Associates

Hiring is still robust for experienced IT pros —particularly for certain job titles, including security-related positions and in-demand technology, such as blockchain and e-commerce positions — but entry-level candidates are finding it more difficult to find new jobs, according to Janco.

Overall, the number of open jobs in the US at the end of May was 11.3 million, a drop from 11.7 million in April, according to the BLS’s May Job Openings and Labor Turnover Survey (JOLTS) report. Despite the drop in open requisitions, the U.S. added 390,000 jobs in May; The unemployment rate also held at 3.6%, and there were almost two job openings for each unemployed American. The number and rate of workers quitting their jobs remained almost unchanged at 4.3 million and 2.8%, respectively.

The impact of inflation and the potential of a significant downturn is not reflected in the preliminary budgets for 2023. Most CIOs and CFOs are trying to determine what they will do if that downturn occurs, Janco reported.

Janco also publishes a biannual salary survey in January and July. The just-published survey results showed that IT salaries were on the rise in the first six months of 2022. For the first time, median salaries for all IT pros in large enterprises exceeded $100,000.

Midsized companies were offering the greatest salary increases, which averaged north of 4% for IT middle managers and staff. IT executives saw an average 3.04% salary increase this year.

Large enterprises were more miserly, with staff receiving a 3.27% average increase and executives and middle managers earning a 3.47% and 1.20% average boost, respectively.

The unemployment rate for tech occupations fell to a near-record low in May, and employer job postings for tech positions passed 443,000, according to an analysis of the latest labor market data by CompTIA, a nonprofit association for the IT industry and workforce.

“The already tight labor market just became even tighter as competition for tech talent reaches near-record levels,” said Tim Herbert, chief research officer at CompTIA. “For any employer relying on the old hiring playbook, it’s time to rethink approaches to recruiting and retention.”

Employers throughout the US economy are stepping up their search for tech workers and tech companies continue to expand payrolls, according CompTIA. Specifically, tech firms added 75,200 workers through the first four months of 2022.

More than 190,000 new IT jobs will be created in 2022, according to IT employment consultancy Janco Associates. The IT job market now has more than 3.85 million positions in the US, with about 130,000 of those positions unfilled, Janco’s report stated.

Some of the top tech jobs in terms of hiring and pay include software developer/engineer, IT project manager, IT support specialist, systems engineer/architect, and network engineer/architect, according to CompTIA’s jobs report.

Tech workers employed in the cloud space saw some of the greatest salary increases over the past year, according to a new salary survey from O’Reilly Media, an online IT training provider. According to the report, cloud-focused workers are the most sought-after tech talent as a growing number of organizations of all sizes utilize cloud tools and services.

The survey revealed that cloud professionals are paid an average yearly salary of $182,000. Report findings also show the impact of the great reshuffle within the tech sector, with 20% reporting they’ve already changed employers over the last year, and 25% of respondents planning to find new employment with better compensation, raising a question of whether the great reshuffle will continue.

Janco Associates

The average salary increase over the past year for cloud workers was 4.3%. The average salary for women, unfortunately, is 7% lower than the average salary for men, the survey also found.

The highest-paid job titles include directors ($235,000) and executives ($231,000), followed by architects, “leads,” and managers ($196,000, $190,000, and $188,000, respectively).

“During the pandemic, we witnessed millions of workers resign from companies in an effort to reconfigure their careers and take deliberate steps toward new job opportunities with higher wages and better alignment between their work and life goals,” said O’Reilly President Laura Baldwin. “With these workers in such demand, we anticipate the great tech exodus to continue unless employers step up with competitive pay, substantial benefits, remote work flexibility, and on-the-job learning and development.”

June 2022

Technology companies added workers for the 18th consecutive month and employer job postings for tech occupations reached a new high in May, according to an analysis of the latest employment data by a nonprofit association for the IT industry and workforce.

Technology industry level companies added 22,800 net new workers in May. Through the first five months of 2022 employment increased by 106,700 positions and is 69% ahead of the same period versus 2021, according to an analysis of the U.S. Bureau of Labor Statistics (BLS) jobs report by industry association CompTIA.

Employer hiring activity as measured by job postings for tech positions totaled 623,627 for the month of May and nearly 2.2 million year-to-date, which represents a 52% increase versus the same period of the previous year.

“The data speaks to the broad-based nature of the tech workforce,” Tim Herbert, chief research officer at CompTIA, said in a statement. “It also speaks to the many factors affecting employment and situations where sectors or companies easing up on hiring may be offset by sectors or companies increasing hiring.”

The unemployment rate for the IT sector did edge up slightly in May to 2.1% from 2.0% the previous month . The unemployment rate for tech occupations, however, remained remarkably low compared to the overall national unemployment rate of 3.6%.

“In an analysis of the latest BLS data we have found the number of jobs created for IT professionals continues to grow. However, there are some clouds for IT pros’ job prospects six to twelve months in the future.” said M. Victor Janulaitis, CEO of  IT employment consultancy Janco Associates. “The primary driver is inflation and high energy costs which is causing concerns that the economy will slow later in the year and potentially have an extended recession in 2023.”

Janco Associates, which did its own analysis of the BLS jobs report, found over the past year more than 20,000 new IT positions were added each month. That surge has begun to cool a bit with 17,000 new IT jobs created in May. 

Janco Associates

All signs point to that growth continuing but at a slower rate of 13,000 to 14,000 new jobs added per month through out the rest of the year. By the end of 2022, Janco forecasted that 191,000 new IT Jobs will be added.

Currently, there are more than 3.9 million unfilled IT job positions in the US, according to Janco.

“That is driven by the fact that qualified candidates can not be found,” Janulaitis said. “The first sign that the growth of the IT job market is slowing will be the reduction in that number as companies will just pull back on trying to recruit those unfilled positions.”

So far in 2022, the IT job market has grown by 93,400 jobs, which is 43,000 more  than the for the same period in 2021. If there is a downturn, as some predict, one of the reactions by CEOs will be to implement hiring freezes that will result in a decrease in the growth of the IT job market, according to Janulaitis.

CompTIA

“Based on our analysis, the IT job market and opportunities for IT professionals will continue to be positive but not as broad in scope as last year. CIOs are still posturing to hire more staff and expand technologies to address blockchain processing and security applications based on market conditions,” Janulaitis said. “However recent events, increased energy cost, and the specter of high inflation will harm IT job market growth.”

Positions for software developers and engineers (204,084) accounted for nearly a third of all employer tech job postings in May, an increase of more than 77,000 from April, according to CompTIA. IT project managers, IT support specialists, systems engineers and architects and network engineers and architects also saw market increase in hiring.

One-third of all job postings were for positions in emerging technologies or jobs requiring emerging tech skills.

Industries that saw some of the hottest hiring trends includeded scientific and technical services, finance and insurance, manufacturing, information, retail trade, health care and social assistance, public administration and educational services. The search for tech talent was widely dispersed across geographies, as well. Four metro areas (New York City, Dallas, Los Angeles and Washington) recorded tech jobs postings totals that surpassed 31,000 positions.

Hiring in the IT services and custom software development category led May’s tech sector job growth with more than 13,100 new positions. Hiring in data processing, hosting and related services, computer and electronic products manufacturing and other information services, including search engines also increased. Conversely, jobs in telecommunications declined, according to CompTIA’s report.

April 2022

The IT job market size grew by 17,000 jobs in April, according to new data from IT employment consultancy Janco Associates.

Over the past three months, 43,200 Jobs have been added to IT Job Market, a pace of expansion exceeds 2021, the firm stated in its latest research post.

In 2021, 213,100 jobs were added to the IT Job Market. That not only replaced the jobs lost during the pandemic, but it also expanded the growth to a level that exceeded the pre-pandemic levels. (Janco bases its information on data from the US Bureau of Labor Statistics — the BLS.) 

“In interviews with both CIOs and HR professionals, Janco has found that hiring IT professionals is at a record high level. This, even with inflation and the specter of a possible economic downturn,” Janco stated. “All signs point to that growth continuing.”

While all IT jobs lost during the pandemic have been recovered, the hiring of IT professionals is now being hindered by a lack of qualified individuals, according to the latest statistics.

The April monthly tech jobs report released by the CompTIA industry association showed the tech industry added 12,300 jobs from February to March, 2022. Software developers (3,613) and systems engineers/architects (3,126) led the pack in terms of new positions available.

Software developers and engineers are far and away the most sought-after positions companies need to fill, with more than 115,000 job postings across the US, according to CompTIA. IT support specialists, IT project managers, systems engineers and architects, and network engineers and architects are also in high demand.

“By all accounts this was an exceptionally strong start to the year for tech employment,” said Tim Herbert, chief research officer at CompTIA. “The arms race in recruiting and retaining tech talent undoubtedly challenges employers in direct and indirect ways.”

The unemployment rate for tech occupations fell to a near-record low, as tech firms added workers for the 16th consecutive month and employer job postings for tech positions surpassed 400,000 in March, according to an analysis of the latest labor market data by CompTIA.

“The already tight labor market just became even tighter as competition for tech talent reaches near-record levels,” Herbert said in a statement. “For any employer relying on the old hiring playbook, it’s time to rethink approaches to recruiting and retention.”

IT jobs across the US increased by 19,000 in March. The unemployment rate for tech occupations is 1.3%, its lowest level since June 2019 and about one-third the current national unemployment rate (3.6%).

Janco is forecasting more than 138,000 new IT jobs will be created in 2022. The IT job market now has more than 3.85 million positions in the US. As of December 2021, Janco reported 3.72 million IT positions in the US.

“Based on our analysis, the IT job market and opportunities for IT professionals will continue to be positive, but not as broad in scope as in the last quarter of 2021,” Janco CEO M. Victor Janulaitis said in a statement. “CIOs are still posturing to hire more staff and expand technologies to address blockchain processing and security applications based on market conditions. However recent events, increased energy cost, and the specter of high inflation will harm IT job market growth.”

Janco

IT job growth in recent years.

According to the BLS, employment in computer and information technology occupations is projected to grow 13% from 2020 to 2030, faster than the average for all occupations. IT is projected to add about 667,600 new jobs, with demand for those workers stemming from a greater emphasis on cloud computing, the collection and storage of big data, and information security, according to the BLS.

The median annual wage for computer and information technology occupations was $94,729 in January 2021, which was higher than the median annual wage for all occupations ($45,760). In January 2022, the median wage for IT positions had increased to $96,667 – an uptick of about 2.05%.

Conversely, new IT hires in the last quarter of 2021 were paid 5% to 6% more than existing staff, according to Janco.

“In conversation with several CIOs, we learned that increases for new hires in the 9% to 12% range were not uncommon,” Janulaitis said. “ It is not uncommon for IT pros who are highly skilled and experienced (over 10 years) to be offered salaries at $125,000 and above. Salary disparity is a driver of dissatisfaction and an increase in attrition rate among existing employees.”

December 2021

Hiring of IT professionals is at record pace with 197,000 more IT jobs so far this year than at the same time last year, according to the US Bureau of Labor Statistics (BLS).

There has been growth in the IT job market each of the past eight months, according to IT employment consultancy Janco Associates. 

“Information-Technology leaders say they are boosting compensation packages and flexible work options to widen the pool of prospective job candidates, as demand surges for tech talent,” M. Victor Janulaitis, Janco’s CEO, stated on the company’s website. 

To entice employees and retain existing tech staff, CIOs are offering flexible work options, such as a combination of in-office and remote work. The median salary for IT professionals is expected to grow to between $96,000 and $97,000, up from just over $94,600 in January and $95,600 in June, Janulaitis wrote.

“Most CIOs have not recruited at this rate before. Janco attributes the hiring push of some CIOs to meet their company’s goals to recruit talent related to security, compliance and cloud computing, Those IT jobs are difficult ones to fill,” he said.

In 2019, 90,200 new IT jobs were created. As a result of the global pandemic. By contrast, 33,200 were lost in 2020. In 2021, almost 150,000 jobs were added to the IT job market.

All job markets included, nearly 100 million working-age people were excluded from the labor force in November 2021, according to Janco Associates, which is based on BLS data. Most, of course, are still in school, retired ill or disabled and unable to work, according to the BLS data. But, those excluded from the labor force also include 471,000 “discouraged workers,” which represents an increase from 460,000 last month. Among the reasons cited for not re-joining the workforce were the continued impact of vaccine mandates, travel restrictions, and new virus variants.

Roughly 34.4 million people have quit their jobs this year as they reevaluate their work lives, according to job-search company Joblist. A survey of 26,000 employees recently published by Joblist showed nearly three-quarters of respondents said they were actively thinking about quitting. And, roughly 34.4 million people have quit their jobs this year during 2021 as they reevaluate their work lives.

About 46% of the remaining workforce is considering leaving work because they’re not being allowed to work remotely, according to the Work Trend Index study by Microsoft Corp.  

“There are 94.438 million who just do not want work at all. That is a increase of almost 612,000 individuals from the same month last year,” according to Janco Associates’s website.

Baby boomers retiring is another factor in the continued fall in the Labor Participation rate.

Overall, though, the IT job market in the U.S. has added an average of about 13,000 positions during each month of 2021, up from a typical monthly average of between 5,000 and 8,000 jobs.

Job growth in the US IT industry had slowed and took a dip in October, adding just 4,800 positions, according to the BLS data that were included in the figures from Janco Associates. That was down from 8,900 positions added in the revised September figures.

In October, the overall growth in IT positions was even as the highly infectious delta variant of COVID-19 continued to hinder overall job growth, mainly due to slowdowns in the restaurant, entertainment, and service sectors.

The IT industry’s bigger challenge is finding qualified candidates for those IT jobs, Janulaitis said in a statement at the time. And the challenge won’t end soon, he said:

From data that we have reviewed, shutdowns resulted in fewer computer science candidates graduating from universities and trade schools. Those in the pipeline for those degrees were reduced as well. One of the drivers of that trend was that the closing of borders limited the number of foreign nationals who could qualify for that training and education.

Many of the new positions that CIOs are trying to fill are in new technologies. There is a shortfall of individuals who have the training and skills necessary. There are open positions that cannot be filled. … At the same, time attrition rates are on the rise in many IT organizations.

US IT job growth was stronger earlier in the year, before the delta variant and the talent shortage: August saw a surge of 25,400 new jobs on the heels of about 18,500 in June and 9,900 in July (all are revised figures), reflecting continuing business recovery from the pandemic. In fact, IT job growth has occurred for 15 consecutive months, though it was uneven through May. I has averaged 13,000 new jobs each month so far in 2021.

The IT job situation in the US continues to look very much like the pre-pandemic state: more positions than candidates. In fact, businesses would have filled more IT positions in September had they found enough qualified candidates, Janulaitis said. Finding web developers and cybersecurity and compliance pros remains the toughest task for CIOs, he said — and is causing HR to focus more on IT staff retention.

That talent shortage has put even greater pressure on businesses to increase salaries, Janulaitis said — and US IT salaries had already been trending up in 2021.

Janco still expects 2021 to have greater IT job growth — there were 189,000 new positions in 2021 as of Oct. 31, with two more months of hiring left in the year — than in any previous year, more than making up for jobs lost due to the pandemic. The last high was 2015, when 112,500 new positions were created. In 2018, 104,600 new IT positions were added; in 2019, the increase was 90,200; and in 2020, the industry lost 33,200 positions.

There are now 3.72 million IT pro jobs in the US, Janco estimates.

The monthly tech jobs report released by the CompTIA industry association also showed slower hiring growth in October. CompTIA calculated that there were 8,300 new US tech-sector jobs last month, down from September’s 18,700, August’s 26,800, July’s 10,700, and June’s 10,500 jobs. The US tech sector’s job numbers remain above their March 2020 peak of 4.76 million positions, nudging just past 4.81 million in October 2021, according to CompTIA data.

CompTIA calculates both technical and nontechnical positions at tech vendors, with roughly 44% being technical and 56% being nontechnical; Janco looks at IT positions, including software developers, in all industries.

CompTIA calculated the estimated unemployment rate for the tech sector at 2.1% in October, down from 2.2% in September but up from 1.5% in August and July. The current tech unemployment rate is within range of its 2018-19 lows, where it ranged from 1.2% to 2.4%. The national unemployment rate in October was 4.6%, down from 4.8% in September, according to the BLS.

October 2021

The job growth in the US IT industry slowed in September, adding 16,700 positions, according to US Bureau of Labor Statistics (BLS) data reported in the latest figures from IT employment consultancy Janco Associates. That’s down from 22,000 positions added in the revised August figures.

Overall growth in IT positions comes even as the highly infectious delta variant of COVID-19 continued to hinder overall job growth, mainly due to slowdowns in the restaurant, entertainment, and service sectors.

That August surge followed job growth of about 18,500 in June and 10,100 in July (both are revised figures), reflecting continuing business recovery from the pandemic in the US. In fact, IT job growth has occurred every month this year, though it was uneven through May, averaging 13,000 new jobs each month so far in 2021.

The IT job situation in the US continues to look very much like the pre-pandemic state: more positions than candidates. In fact, businesses would have filled more IT positions in September had they found enough qualified candidates for them, Janco CEO M. Victor Janulaitis said in a statement. Finding web developers and cybersecurity and compliance pros remains the toughest task for CIOs, he said — and is causing HR to focus more on IT staff retention.

That talent shortage has put even greater pressure on businesses to increase salaries, Janulaitis said — and US IT salaries had already been trending up in 2021.

Janco expects 2021 to have greater IT job growth — 145,000 to 152,000 new positions — than in any year since 2015, when 112,500 new positions were created. In 2018, 104,600 new IT positions were added; in 2019, the increase was 90,200; and in 2020, the industry lost 33,200 positions.

There are now 3.72 million IT pro jobs in the US, Janco estimates.

The monthly tech jobs report released by the CompTIA industry association also showed slower growth in September hiring. CompTIA calculated that there were 18,700 new US tech-sector jobs last month, down from August’s 26,800, but still a jump over both July’s gain of 10,700 and June’s gain of 10,500 jobs. The US tech sector’s job numbers remain above their March 2020 peak of 4.76 million positions, reaching 4.81 million in September 2021, according to CompTIA data.

CompTIA calculates both technical and nontechnical positions at tech vendors, with roughly 44% being technical and 56% being nontechnical, whereas Janco looks at IT positions, including software developers, in all industries.

CompTIA calculated the estimated unemployment rate for the tech sector at 2.2% in September, up from 1.5% in August and July, and the same as in June. The current tech unemployment rate is within range of its 2018-19 lows, where it ranged from 1.2% to 2.4%. The national unemployment rate in September was 4.8%, according to the BLS.

September 2021

The job growth in the US IT industry accelerated in August, adding 25,400 positions, according to US Bureau of Labor Statistics (BLS) data reported in the latest figures from IT employment consultancy Janco Associates. That growth in IT positions comes even as the highly infectious delta variant of COVID-19 slowed overall job growth, mainly due to slowdowns in the restaurant and entertainment sectors.

The August surge follows job growth of about 18,500 in June and 10,100 in July (both are revised figures), reflecting continuing business recovery from the pandemic in the US. In fact, IT job growth has occurred every month this year, though it was uneven through May.

The IT job situation in the US continues to look very much like the pre-pandemic state: more positions than candidates. In fact, businesses would have filled more IT positions in August had they found enough qualified candidates for them, Janco CEO M. Victor Janulaitis said in a statement. Finding web developers and cybersecurity and compliance pros remains the toughest task for CIOs, he said — and is causing HR to focus more on IT staff retention.

That talent shortage has put even greater pressure on businesses to increase salaries, Janulaitis said — and US IT salaries had already been trending up in 2021.

Janco expects 2021 to have greater IT job growth — 132,000 to 152,000 new positions — than in any year since 2015, when 112,500 new positions were created. In 2018, 104,600 new IT positions were added; in 2019, the increase was 90,200; and in 2020, the industry lost 33,200 positions.

There are now 3.7 million IT pro jobs in the US, Janco estimates.

The monthly tech jobs report released by the CompTIA industry association also showed a surge in August hiring. CompTIA calculated that there were 26,800 new US tech-sector jobs last month, a jump over both July’s gain of 10,700 and June’s gain of 10,500 jobs. The US tech sector’s job numbers have now exceeded their March 2020 peak of 4.76 million positions, reaching 4.79 million in August 2021, according to CompTIA data.

CompTIA calculates both technical and nontechnical positions at tech vendors, with roughly 44% being technical and 56% being nontechnical, whereas Janco looks at IT positions, including software developers, in all industries.

CompTIA calculated the estimated unemployment rate for the tech sector at 1.5% in August, the same as in July and down from 2.2% in June. The current tech unemployment rate is approaching its 2018-19 lows, where it ranged from 1.2% to 2.4%. The national unemployment rate in August was 5.2%, according to the BLS.

August 2021

The job growth in the US IT industry continued at a steady pace in July, adding 11,200 positions, according to figures from the US Bureau of Labor Statistics (BLS) reported in the latest figures from IT employment consultancy Janco Associates. June saw an increase of 11,400, reflecting continuing business recovery from the COVID-19 pandemic in the US. In fact, IT job growth has occurred every month this year, though it was uneven in the first five months of the year.

Today, the jobs situation looks very much like the pre-pandemic state: more positions than candidates. “With reopening, more organizations are actively recruiting,” Janco CEO M. Victor Janulaitis said in a statement. “In full-employment states, there are many positions for IT pros that remain unfilled due to the lack of qualified candidates.”

That’s put pressure on businesses to increase salaries.

Janco expects 2021 to have greater IT job growth — 108,000 new positions — than in any year since 2015, when 112,500 new positions were created. The year 2018 saw 104,600 new IT positions; 2019 saw 90,200; and 2020 saw a loss of 33,200 positions.

There are nearly 3.7 million IT pro jobs in the US, Janco estimates.

The monthly tech jobs report released by the CompTIA industry association calculated that there were 10,700 new US tech sector jobs in July, similar to June’s gain of 10,500 jobs and following gains the entire year. The US tech sector’s job numbers have now essentially matched their March 2020 peak of 4.76 million positions, according to the CompTIA data.

CompTIA calculates both technical and nontechnical positions at tech vendors, with roughly 44% being technical and 56% being nontechnical, whereas Janco looks at IT positions, including software developers, in all industries.

CompTIA calculated the estimated unemployment rate for the tech sector as 1.5% in July, down from 2.2% in June. The current tech unemployment rate is approaching its 2018-19 lows, where it ranged from 1.2% to 2.4%. The national unemployment rate in July was 5.4%, according to the BLS.

July 2021

The US IT industry has seen strong job growth so far in 2021, according to revised figures from the US Bureau of Labor Statistics (BLS) as reported in the latest figures from IT employment consultancy Janco Associates.

The BLS has adjusted its figures on job growth for all of 2021, bringing the total hires to 69,000 IT staffers through June. The agency had previously reported 47,700 jobs through May, a figure now revised upward to 57,100. June saw an additional 11,900 hires, and it’s possible the BLS could revise its figures again in future reports.

Janco also confirmed previously reported preliminary data on US IT salaries from its own surveys. As the jobs market remains steady in its post-COVID recovery, IT salaries have started to increase as organizations struggle to fill some positions.

That salary survey shows that IT execs in large enterprises are getting the largest salary boosts, with a median increase of 3.2%. Those in midsize enterprises are seeing median rises of 1.2%. For lower-level positions, IT pros do better at midsize enterprises than at large ones: Middle managers at large enterprises are seeing 0.6% boosts, while those at medium-sized firms are seeing 1.3% increases.

IT staffers are seeing the least improvement — an ongoing phenomemon across all company sizes, in which IT execs continue to be rewarded more. Staffers at large enterprises are realizing 0.4% gains; those at midsize enterprises are seeing 0.7% gains. 

At its worst, more than 100,000 IT jobs were lost during the depths of the pandemic in spring 2020, though two-thirds of those came back as the year progressed. Still, 2020 ended with 33,200 fewer IT jobs in the US compared to 2019. With the 69,000 estimated job gains so far in 2021, the US IT job market at the end of June is at 16,700 ahead of the 2020 peak in February — and nearly 140,000 jobs ahead of the 2020 nadir in July.

There are more than 3.6 million IT pro jobs in the US, Janco estimates.

The monthly tech jobs report released by the CompTIA industry association calculated that there were 10,500 new US tech sector jobs in June, following gains in each previous month of 2021. The US tech sector’s job numbers have now essentially matched their March 2020 peak of 4.76 million positions, according to the CompTIA data.

CompTIA calculates both technical and nontechnical positions at tech vendors, with roughly 44% being technical and 56% being nontechnical, whereas Janco looks at IT positions, including software developers, in all industries.

CompTIA’s data does show a softening of hiring, with small reductions in job postings in several roles, such as for software developers and systems analysts, as well as in several cities, including Washington, D.C., Atlanta, and San Francisco. By contrast, postings grew for positions in San Jose, Calif. The data show more variability, indicating perhaps some settling of hiring activities.

CompTIA calculated the estimated unemployment rate for the tech sector as 2.2% in June, down from 2.4% in May. The current tech unemployment rate is approaching its 2018-19 lows, where it ranged from 1.2% to 2.4%.

June 2021

As the US IT jobs market remains steady in its post-COVID recovery, salaries have started to increase as organizations struggle to fill some positions. That’s based on a survey to be releasd June 15 by IT employment consultancy Janco Associates. Janco provided Computerworld a preview of that survey.

That salary survey shows that IT executives in large enterprises are getting the largest salary boosts, with a median rise of 3.2%. IT execs in midsize enterprises are seeing median rises of 1.2%. For lower-level positions, IT pros do better at midsize enterprises than at large ones: Middle managers at large enterprises are seeing 0.6% boosts, while those at midsize enterprises are seeing 1.3% rises.

IT staffers are seeing the least improvement — an ongoing phenomemon across all company sizes, in which IT execs continue to be rewarded more — with those at large enterprises registering 0.4% gains and those at midsize enterprises seeing 0.7% gains. 

The US IT employment data from the Bureau of Labor Statistics (BLS) has been very volatile in 2021, with the agency reducing its prior-month estimates several times this year. The agency, for example, reduced its 2021 job gain count by 14,100 from earlier estimates. The BLS data shows a May rise in IT hires of 7,700, and — even with the downward BLS revisions for prior months — the net growth for US IT jobs this year stands at about 47,700, according to Janco’s analysis.

At its worst, more than 100,000 IT jobs were lost during the depths of the pandemic in spring 2020, though two-thirds of those came back as the year progressed. Still, 2020 ended with 33,200 fewer IT jobs in the US compared to 2019. With the 47,700 estimated job gains so far in 2021, the US IT job market at the end of May is at 13,500 more than the 2020 peak in February — and nearly 150,000 ahead of the 2020 nadir in July.

There are more than 3.6 million IT pro jobs in the US, Janco estimates.

The monthly tech jobs report released by the CompTIA industry association calculated that there were 10,500 new US tech sector jobs in May, following gains in each previous month of 2021. CompTIA calculates both technical and nontechnical positions at tech vendors, with roughly 44% being technical and 56% being nontechnical, whereas Janco looks at IT positions, including software developers, in all industries.

Still, the US tech sector’s job numbers have not yet matched their March 2020 peak of 4.76 million positions. As of last month, there were 4.74 million, a number that continues to grow.

CompTIA’s unemploment rate estimate for the tech sector stood at 2.4% in May, within its range over the last few months — versus 5.8% in May for the national rate for all industries. For previous months, CompTIA calculated a 2.5% tech unemployment rate in April, 1.9% in March, and 2.4% in February. The rise in the overall tech unemployment rate may reflect a loss of sales jobs in the tech sector, even as technologist jobs grew.

CompTIA also saw the number of tech-related job listings jump in May, to about 365,000 versus the 307,000 estimated for April. Job postings have grown by about 158,000 so far in 2021.

Software developers constituted the largest pool of listed openings at 112,200, with listings for IT support specialists coming in second at 28,200 and for system engineers and architects third at 27,200 — all represent significant increases from May.

The top sector for tech job postings in May was manufacturing, which had 70,970 positions open. Professional and technical services followed at 58,783, then finance and insurance at 31,054, and information services at 20,244.

The Washington, D.C. metro area had the most job postings, 21,611, followed by the New York metro area with 20,481; the Dallas metro area with 14,796; the Los Angeles metro area at 12,825; and the Atlanta metro area at 12,825. The San Francisco metro came in sixth at 11,918, just 117 more postings than in April. And the adjacent San Jose metro came in ninth at 8,746.

The Chicago metro had the greatest decline in postings, with 10,526 postings — down 1,025 from April. On the West Coast, slight declines in job postings were recorded in the Los Angeles area (205 fewer), the Seattle area (51 fewer, for 80,080 in May), and the San Jose metro area (466 fewer, wiping out the 117 gain in the adjacent San Francisco metro).

May 2021

Nearly all the US IT jobs lost in 2020 during the COVID-19 pandemic have come back, with IT employment enjoying eight straight months of growth. Of course, some of the replacement jobs were in IT specialties other than the jobs lost, as there has been a steady trend of declining data center and telecommunications positions in favor of software development jobs; that was true, even before the pandemic.

At its worst, more than 100,000 IT jobs were lost during the depths of the pandemic in spring 2020, though two-thirds of those came back as the year progressed. Still, 2020 ended with 33,200 fewer IT jobs in the US compared to 2019.

So far in 2021, 30,400 IT jobs have been added, nearly erasing the 2020 net losses.

And IT jobs in 2021 are set to continue to grow, according to the latest figures from IT employment consultancy Janco Associates. It expects another 70,000 IT jobs to be available this year. Janco’s numbers come from the US Bureau of Labor Statistics (BLS) monthly reports.

When adjusted for seasonality, March saw 6,500 new IT jobs, February saw 9,400, and January saw 14,400. The January and February numbers were revised up significantly from BLS’s original estimate of 8,500 and 6,000, respectively.

The Janco figures jibe with a report released by the CompTIA industry association. It calculated that there were 9,700 new US tech sector jobs in March, following a gain of 7,700 in February and 19,500 in January. CompTIA calculates both technical and nontechnical positions at tech vendors, whereas Janco looks at IT positions, including software developers, in all industries.

Using a much broader definition of IT, including sales positions, CompTIA estimated that 50,000 IT-related jobs were added in March across all industries, following a 178,000-job gain in in February and a 78,000-job gain in January. That reflects an unemployment rate of 1.9%, down from 2.4% in February 2021 and the lowest rate since August 2019.

Nationally, for all jobs, the US unemployment rate fell from 6.2% in February to 6.1% in March, according to the BLS. But the national unemployment rate is closer to 9% if those who have given up looking are included, estimates Oxford Economics; the BLS reports the level of these discouraged workers has remained steady.

CompTIA also saw the number of IT-related job listings grow by about 30,000 in March, passing 307,000. That follows a rise of 44,300 listings in February and 26,000 in January.

Software developers constituted the largest pool of listed openings at 93,000, with listings for IT support specialists coming in second at 25,800 and for system engineeris and architects third at 23,200.

April 2021

Nearly all the US IT jobs lost in 2020 during the COVID-19 pandemic have come back, with IT employment enjoying eight straight months of growth. Of course, some of the replacement jobs were in IT specialties other than the jobs lost, as there has been a steady trend of declining data center and telecommunications positions in favor of software development jobs; that was true, even before the pandemic.

At its worst, more than 100,000 IT jobs were lost during the depths of the pandemic in spring 2020, though two-thirds of those came back as the year progressed. Still, 2020 ended with 33,200 fewer IT jobs in the US compared to 2019.

So far in 2021, 30,400 IT jobs have been added, nearly erasing the 2020 net losses.

And IT jobs in 2021 are set to continue to grow, according to the latest figures from IT employment consultancy Janco Associates. It expects another 70,000 IT jobs to be available this year. Janco’s numbers come from the US Bureau of Labor Statistics (BLS) monthly reports.

When adjusted for seasonality, March saw 6,500 new IT jobs, February saw 9,400, and January saw 14,400. The January and February numbers were revised up significantly from BLS’s original estimate of 8,500 and 6,000, respectively.

The Janco figures jibe with a report released by the CompTIA industry association. It calculated that there were 9,700 new US tech sector jobs in March, following a gain of 7,700 in February and 19,500 in January. CompTIA calculates both technical and nontechnical positions at tech vendors, whereas Janco looks at IT positions, including software developers, in all industries.

Using a much broader definition of IT, including sales positions, CompTIA estimated that 50,000 IT-related jobs were added in March across all industries, following a 178,000-job gain in in February and a 78,000-job gain in January. That reflects an unemployment rate of 1.9%, down from 2.4% in February 2021 and the lowest rate since August 2019.

Nationally, for all jobs, the US unemployment rate fell from 6.2% in February to 6.1% in March, according to the BLS. But the national unemployment rate is closer to 9% if those who have given up looking are included, estimates Oxford Economics; the BLS reports the level of these discouraged workers has remained steady.

CompTIA also saw the number of IT-related job listings grow by about 30,000 in March, passing 307,000. That follows a rise of 44,300 listings in February and 26,000 in January.

Software developers constituted the largest pool of listed openings at 93,000, with listings for IT support specialists coming in second at 25,800 and for system engineeris and architects third at 23,200.

March 2021

As the overall US economy showed continued glimpses of recovery in February, the IT job market continued the rebound that began in the fall, though at a slower pace than in January.

Growth last month was 13,700, according to the latest figures from IT employment consultancy Janco Associates. January saw 8,600 new IT jobs. When adjusted for seasonality, February saw 6,000 new IT jobs, and January saw 10,900, down dramatically from the US Bureau of Labor Statistics’ (BLS’) original estimate of 18,200.

Still, the overall trend for IT — whose US jobs number 3.6 million — remains on an upward trajectory.

The Janco figures jibe with a report released by the CompTIA industry association. It calculated that there were 7,700 new US tech sector jobs in February, following a gain of 19,500 in January. CompTIA calculates both technical and  nontechnical positions at tech vendors, whereas Janco looks at IT positions, including software developers, in all industries.

Using a much broader definition of IT, including sales positions, CompTIA estimated that 178,000 IT-related jobs were added in February across all industries, following a 78,000-job gain in January. That reflects an unemployment rate of 2.4%, down from 3.0% in December 2020.

Nationally, for all jobs, the US unemployment rate fell from an adjusted 6.3% in January to 6.2% in February, according to the BLS. But the national unemployment rate is closer to 9% if those who have given up looking are included, estimates Oxford Economics; the BLS reports the level of these discouraged workers has remained steady.

CompTIA also saw the number of IT-related job listings grow by about 44,300 in February, passing 277,000. That follows a rise of 26,000 listings in January. Software developers constituted the largest pool of listed openings at 88,000, with listings for systems engineers and architects coming in second at 22,700. But Janco CEO M. Victor Janulaitis expects that over the next several years, coders will find jobs scarcer as low-code development gains traction, even as demand for software developers overall increases.

February 2021

Even as the overall US economy struggled in January — adding just 6,000 private sector jobs and 49,000 jobs overall — the seasonally adjusted IT job growth last month was 18,200, according to the latest figures from IT employment consultancy Janco Associates. The past two months saw 55,000 new IT jobs, revised up from the 18,000 total reported a month earlier, based on revisions from the US Bureau of Labor Statistics.

Still, compared to January 2020, US IT jobs have decreased by 35,800, a loss of about 1%. Last spring, more than 100,000 IT jobs were lost due to the COVID-19 pandemic, representing about 3% of the IT workforce.

The Janco figures jibe with a report released by the CompTIA industry association. It calculated that there were 19,500 new US tech sector jobs in January. CompTIA calculates both technical and  nontechnical positions at tech vendors, whereas Janco looks at IT positions, including software developers, in all industries.

Using a much broader definition of IT, including sales positions, CompTIA estimated that 78,000 IT-related jobs were added in January across all industry sectors. That reflects an unemployment rate of 2.4%, down from 3.0% in December 2020. Nationally, for all jobs, the US unemployment rate fell to 6.3% from 6.7%. But the national unemployment rate is closer to 9% if those who have given up looking are included, estimates Oxford Economics.

CompTIA also saw the number of IT-related job listings grow by about 26,000 in January, passing 232,000.

Over the coming decade, Janco CEO M. Victor Janulaitis expects 11% growth in US IT jobs. “Most of the growth in the IT job market will be with software developers, quality assurance, and testers,” he said in a statement. “This will be driven by [work from home] as it is will be embraced by more enterprises in normal operations and internet-centric applications are developed and deployed.

“The projected growth for that sector alone will be almost 18%,” he said.

January 2021

For the first time since the dot-com bust of 2000-2002, US IT salaries were flat in 2020, rising a negligible 0.08% to an average of $94,609 per year, according to the most recent survey of IT executives by management consultancy Janco Associates. The year also ended with 55,900 fewer jobs than the US IT industry had on Jan. 1, 2020 — a drop of 1.5% for the year. (Last week, the US Bureau of Labor Statistics [BLS] revised its figures for 2020, resulting in a revised drop of 55,900 versus the 81,100 reported previously.)

A separate survey by the industry association CompTIA, using BLS data, showed that the broad US tech industry showed job growth of 391,000 positions (22,000 of which were at tech vendors) in December 2020 — even as the US as a whole lost 140,000 jobs. About 44% of those tech sector jobs are for positions such as IT staff, software developers, and IT project managers; the rest are support positions such as sales, marketing, and management.

Janco’s survey focuses specifically on IT jobs, mainly people in a CIO’s organization, whereas the CompTIA survey looks at the entire tech sector.

The December growth in tech and IT jobs still left the broader tech sector below December 2019’s level, with 4.68 million jobs in December 2020, down from 4.73 million a year earlier. CompTIA’s survey shows a steady increase in tech jobs since July 2020, after a steep drop that began in March 2020 due to the COVID-19 pandemic.

The Janco survey showed that IT middle managers lost the most pay ground in 2020, with an average 0.08% salary reduction at large enterprises and 0.07% reduction at mid-sized enterprises. IT staff saw 0.03% average salary increases in large enterprises and 0.04% in medium enterprises. Executives did the best, of course: their salaries were up 0.59% in large enterprises and up 0.35% in medium ones.

April and May were the worst months for US IT jobs in 2020, Janco’s data shows. In those months, 116,000 IT pros lost their jobs due to COVID-19 pandemic shutdowns. Hiring partially recovered in later months, but the total of 3.58 million US IT jobs in 2020 remained below 2019’s 3.64 million (but slightly above 2018’s 3.54 million).

Janco notes that IT consulting and contract positions meant to augment IT staff were all but eliminated in 2020 and hiring growth stalled in the second wave of lockdowns that began in the fall as COVID-19 infections resurged. Those infection rates continue to grow in early 2021; Janco’s interviews with 101 US CIOs reveal that they don’t expect IT job or salary growth in 2021.

Still, IT was fortunate in 2020 compared to many other industries. The COVID-19 pandemic devastated many industries, eliminating jobs at an unprecedented scale in the travel, hospitality, entertainment, and events businesses. Retailers with physical stores faced massive job losses as well, though manufacturing has largely bounced back. The US overall had 9.4% fewer jobs as of June 30 (the latest data available) compared to 2019, the BLS reported. The tech unemployment rate has been roghly half that of the national rate throughout the pandemic, ending at 3% in December 2020 versus 6.7% for the economy as a whole, CompTIA reported.

Despite those massive losses in multiple industries, the average US salary rose 2.6% in 2020, according to the PayScale salary survey, which was last updated on Oct. 12. The latest data from the BLS, which covers the first half of 2020, showed an 8.6% average salary increase from a year earlier. Some of the salary increases reflect higher pay for grocery workers, delivery drivers, and warehouse workers whose jobs became more critical during the lockdowns and who were at greater risk of contracting the virus in their work.

Of course, people who lost their jobs aren’t included in salary surveys, so those figures reflect the pay of the still-employed.

CompTIA reports that software developers had the largest employment gains (4,700 hires) in December, triple that of the next-largest group, systems analysts (1,400 hires).

December 2020

After three months of rebound, the US IT job market reversed course in November, shedding 8,300 jobs. That loss follows a 9,300-job gain in October, a 13,500 gain in September, and a 4,500 gain in August. For the year, the net loss of US IT jobs now stands at 81,100, still down from a peak high of 102,900 job losses this year as of August, according to the most recent survey of IT executives by management consultancy Janco Associates. 

In November, “the major loss of jobs for IT professions was in [small businesses] and consulting firms that service them; 7.5 million small to mid-size business are disproportionately impacted by shutdowns,” said Janco CEO M. Victor Janulaitis. He said many of these closures escape notice because they shut down before their debt levels require going through bankruptcy court.

Large companies have also shuttered or retrenched, he said.

Three quarters of the lost IT jobs in the US are concentrated in two segments, he said. One is data processing, hosting, and related services, the other is computer systems design and related services.

“Hiring of IT professionals has all but stopped due to the uncertainty about the recovery,” Janulaitis said. And the resurgence of the COVID-19 pandemic this fall, and the likelihood that vaccinations will be largely complete only in summer 2021, suggests that IT jobs will be at risk for the foreseeable future, he said, as many businesses continue to shrink and many others put off anchoring until there’s more economic certainty.

November 2020

IT jobs lost at the outset of the COVID-19 pandemic and its lockdowns continue to recover slowly, with an additional 12,700 US jobs added in October — bringing the total recovered jobs since August to 27,800. Those autumn gains bring the loss of US IT jobs to 75,100 for the year, down from a high of 102,900 job losses as of August, according to the most recent survey of IT executives by management consultancy Janco Associates.

The IT job market continues to struggle with the closure of many small- and medium-sized businesses and of many retail operations, in addition to broad cutbacks in all industries meant to preserve cash, said Janco CEO M. Victor Janulaitis.

In addition, the percentage of data center jobs has dropped from 10% of the US IT workforce to 9% since the pandemic began, indicating more severe cutbacks in back-end IT services as part of a shift to the cloud.

A separate report by Foote Partners, which conducts salary surveys on IT jobs and certifications, shows a mixed bag for IT pros in 2020, with some skills increasing in compensation despite (or because of) the pandemic, and others losing value. On average, though, IT compensation has held steady.

Gainers include a variety of positions involving security, Apache ZooKeeper distributed configuration, the Hbase SQL database, the Ethereum blockchain, Oracle Coherence caching, Marketo marketing automation, the Apache Flink stream-processing framework, natural language processing, master data management, and the Keras deep learning API.

Decliners include BusinessObjects and Cognos application development, Google App Engine and JSON web development, Oracle Application Server, SAP Enterprise Business Applications, SNA networking, mobile device management, Cisco’s UCCX call center platform, big data analytics, Windows NT, Suse Linux, and Tibco Enterprise Messaging Service.

October 2020

Although the  IT and telecommunications job market in the US is still expected to shrink by 64,000 jobs this year compared to 2019, the recovery of IT jobs lost during the early days of the pandemic continued for a second month. The most recent survey of IT executives by management consultancy Janco Associates shows that about 12,200 IT jobs were added in September following a net gain of 6,900 in August. 

At the outset of the pandemic, more than 105,000 US IT jobs were lost as companies retrenched in the face of COVID-19, more than erasing the 90,200 jobs added in all of 2019. Those losses have been partially addressed since through rehiring and new hires. As a result, over the last nine months, IT jobs were down by 85,000.

However, Janco doesn’t forecast a recovery in the IT job marked until spring 2021, as the US economy suffers new waves of infections that slow or even reverse prior gains. In October, an additional wave of IT layoffs is expected as airlines furlough tens of thousands of workers now that federal job subsidies have ended for that industry.

Companies are leery about expanding during uncertainties around government action, particularly the stalled stimulus efforts, said Janco president Victor Janulaitis. The November presidential election is another cause for companies to wait and see. “Spending for IT products and services has all but stopped as companies reevaluate the state of the economy globally as new waves of selected shutdowns occur,” he said.

September 2020

By Ken Mingis, Executive Editor, Computerworld

Although the U.S. IT and telecommunications job market is still expected to shrink by 64,000 jobs in 2020 versus 2019, the worst may be over – and about a third of the IT jobs lost during the COVID-19 pandemic are expected to have come back by 2021. That’s according to the most recent survey of IT executives by management consultancy Janco Associates.

For the first time in six months, August saw a net gain in the number of IT jobs: up 6,900. The U.S. Bureau of Labor Statistics also revised the number of IT jobs lost in July, showing 4,400 fewer jobs were lost than originally reported. Still, over the last 12 months, IT jobs fell by 81,800, nearly erasing the 90,200 jobs gained in 2019.

“IT hiring will remain soft but improving slightly. …Major many companies are resuming existing operations slowly, but are holding back on any expansion until after the [Nov. 3] election,” said Janco’s latest report.

But some sectors will continue to lose jobs, it noted, including the airline industry, which is poised to lay off tens of thousands of employees across all roles, not just IT, as federal COVID-related subsidies end on Sept. 30. Cities such as Portland, Ore. that have seen ongoing civil unrest due to protests over police killings of Black citizens will also see deferred hiring until the unrest subsides, Janco said.

IT organizations remain cautious on spending, with very few new initiatives or expansions of current efforts being funded beyond the initial rampup in work-from-home and social-distancing technology investments at the start of the crisis.

August 2020

Coronavirus spikes in parts of the U.S. in July have worsened hiring conditions for IT professionals, and management consulting firm Janco Associates now doesn’t expect any rebound in hiring until late this year or early in 2021.

Janco now estimates that just 25,000 new IT jobs will be created in 2020; there are now more than 163,000 fewer tech jobs than a year ago. In July alone, another 10,900 IT positions disappeared, the company said.

“We have found that a number of companies have already shuttered their doors or are expanding layoffs that impact the IT job market,” Janco CEO Victor Janulaitis said in a statement. “This includes oil and gas drillers like Whiting Petroleum and Diamond Offshore, retailers like J Crew, manufacturers like Briggs & Stratton, and grocers like Dean and DeLuca. As a result, IT professionals working for those companies are looking for new employment opportunities.

“Until after the election…, when the public feels [it] can go back to a normal life [and]  more companies open their doors, hiring for new positions in IT will be limited at best,” he said. “In addition, the continued civil unrest is slowing confidence by the public, which in turn, hinders corporate confidence.”

He noted the stalemate in Washington, D.C. over new efforts to prop up the U.S. economy, as several states deal with increasing numbers of COVID-19 cases.

“Spending for IT products and services has all but stopped as companies reevaluate the state of the economy globally as new waves of selected shutdowns occur,” Janulaitis said. “With more companies adopting [work from home] to address ‘social distancing’ and avoid in-office contacts, fewer companies are taking an aggressive approach to any additional spending for IT products and services. It does not help that the U.S. Congress and the president are at a stalemate on pandemic relief.”

July 2020

The wave of IT layoffs caused by the COVID-19 pandemic did not end in May 2020 as expected, with June seeing 6,000 more layoffs as business uncertainties rose because of the increase in coronavirus infections in the U.S., according to new data from management consulting firm Janco Associates. The pandemic’s economic fallout had already led to about 117,000 job losses in U.S. IT positions in April and early May 2020.

The increase in COVID-19 infections across most U.S. states in June prompted the additional layoffs, and Janco’s June survey of U.S. IT organizations shows that further layoffs – though at the relatively small scale seen in June – are expected given business uncertainties. That survey also said that salary increases for IT staffers are “a thing of the past.”

The job losses were exacerbated by the extensive protests over the police killings of George Floyd and others, Janco said. That led to additional economic uncertainty, particularly in the retail industry hit by looting, leading to additional closings, deferred reopenings, and unexpected costs.

In addition, a Trump Administration decision last month to pause the use of H-1B visas, which are commonly used to fill IT positions, will not help U.S. IT pros in the near term, Janco noted. Because it applies to new hires it does little to free up existing positions.

IT organizations don’t expect to begin hiring again until late 2020 or early 2021, assuming that the infections are under control and the economic reopening interrupted in June can resume. Without a sustained reopening, companies won’t see demand for goods and services that provides the money for new and replacement hires.

Janco CEO Victor Janulaitis now expects the net number of new U.S. IT jobs in 2020 will be about 30,000, versus the 94,500 it had expected before the epidemic struck. In 2019, the U.S. IT job market grew by 90,200.

June 2020

The wave of IT layoffs caused by the COVID-19 pandemic has ended, according to new data from management consulting firm Janco Associates. The pandemic’s economic fallout resulted in about 117,000 job losses in U.S. IT positions in April and early May 2020.

But Janco’s May survey of U.S. IT organizations shows that further layoffs are largely not expected. But neither is much IT job growth. IT organizations don’t expect to begin hiring again until late 2020, assuming that the gradual economic reopening now in progress continues and demand for goods and services resumes, providing the money for new and replacement hires.

Janco CEO Victor Janulaitis expects that the net number of new U.S. IT jobs in 2020 will be about 35,000, versus the 94,500 it had expected before the epidemic struck. In 2019, the U.S. IT job market grew by 90,200.

May 2020

It’s not yet at the level of “Brother, can you spare a dime?” for IT workers, as it is for many workers in retail, entertainment, and hospitality. But as it becomes apparent the road to recovery from the COVID-19 pandemic will be take several years, IT pros are seeing layoffs in the U.S. and diminished prospects for future work, both as staff and as contractors.

In April 2020, IT pros saw 102,300 layoffs in the U.S., according to management consulting firm Janco Associates. And Janco has now more than halved the expected IT job growth in 2020 that it predicted just a month ago – to 40,000 versus the earlier prediction of 95,400 IT jobs.

Janco’s current projection for U.S. IT jobs this year is now 3.6 million, down from 2019’s 3.7 million U.S. IT jobs.

Companies have essentially stopped filling IT positions and halted new contract work, Janco CEO Victor Janulaitis said, based on conversations with CIOs and CFOs. That means IT pros who lose their jobs will have little prospect of employment or contract work in 2020.

“Until the public begins to feel they can go back to a normal lifestyle and companies open their doors, IT hiring will be nonexistent,” he said.

Janulaitis noted that there had been a surge in IT contract work at the beginning of the COVID-19 crisis to help set up work-at-home environments, from collabration tools to VPNs. “The demand for contractor help in this effort was high initially, but now is non-existent,” Janulaitis said. The tech startup sector is also in crisis.

Janulaitis does expect IT hiring to begin picking up at the end of the year. That’s in line with the current thinking for the economy as a whole; various U.S. Federal Reserve executives and economists have said they expect the current effective jobless rate of about 23% to fall back but still be about 10% in 2021. The official jobless rate stands at 14.7% – versus 3.5% in 2019 – but that count misses recent layoffs, laid-off people not looking for work during the crisis, and the self-employed.

Broadly, expectations of a V-shaped recovery have given way to expectations of a prolonged decline and then slow recovery, since there is no vaccine for COVID-19, treatments and testing are not available at meaningful levels to determine who can work safely, it’s not known whether infected people develop immunity, and the ramifications of the various efforts now under way to reopen parts of society and economy remains unknown.

The fate of IT positions is not immune from these general economic factors. “All of this has put IT professionals the same state as the rest of the labor market,”Janulaitis said.

On the heels of Apple rolling out an early preview of iOS 18.1 with its first generative AI (genAI) tools, IDC this week released a report saying nearly three-in-four smartphones will be running AI features in four years.

Apple first announced its plans to add AI features to devices through its Apple Intelligence platform at its developers conference in June. This week, Apple announced AI tools and Siri enhancements that will be exclusive to the iPhone 15 Pro and Pro Max, as well as later iPhones. Apple Intelligence will also be released on Macs running Apple Silicon M-series chips.

Over the next two years, the number of genAI-enabled smartphones is expected to grow quickly, though they’ll likely be limited to flagship devices like the iPhone 15 Pro, Google Pixel 8 Pro, and Samsung Galaxy Z Flip6 — and cost will be an issue.

“Capable chipsets don’t come cheap,” said Anthony Scarsella, IDC’s research director for mobile phones. “Over time, we believe these components will enter the mid-market and more affordable models as competition grows among device manufacturers and AI applications.”

Most high-end mobile processors now include an AI accelerator or neural processing unit (NPU). The Arm processor architecture provides an NPU component for licensees and mobile chips from Intel, Qualcomm, MediaTek, and Samsung have their own NPU implementations, according to Jack Gold, principal analyst with tech industry research firm J. Gold Associates.

Shutterstock/ImageFlow

“Right now it’s mostly in the high end of devices (e.g., high-end Snapdragon chips), but eventually they will migrate down to the lower end as well,” Gold said. “In the next two to three years, you will be hard pressed to find a mobile processor, except perhaps at the very low end for $100 smartphones, that doesn’t have AI acceleration built in.”

One of the biggest advantages of running genAI on smartphones is that user data never moves off the device — boosting both privacy and security — and locally running apps can benefit from the use of AI accelerations (e.g, audio, video, digital assistance, device management, etc.), according to Gold.

   

GenAI on mobile devices will automate certain functions, such as generating new messages and emails by choosing different conversational tones such as “friendly,” or “professional” or “concise”, for example. GenAI tools can also be used to pull bulleted points from digital conversations and generate bullet points in a “too long; didn’t read” (TLDR) format, for example.

“Search will always be a top priority and use case for mobile users,” Gold said. “AI-assisted search will not only be for cloud based search, like Google, but also on-device search like, ‘Where did I put that file and picture I took of my dog?’ Beyond that, help with pictures and video will be a major use (and already is) that helps mobile users create better pictures and video.”

For example, the Apple Intelligence platform will allow users to generate images from word prompts. Inputing the word “rooftop” will generate the image of a rooftop scene in a city, which can then be animated or illustrated andsent in a message. Siri, Apple’s voice assistant, will also use Apple Intelligence to better interpret voice commands and help ensure responses are accurate.

Additionally, general concierge-like services will become more widely available as smartphones using genAI learn more about users and their preferences.

GenAI will ‘will completely transform’ how we use phones

“While it is still too early to know all the use cases that will emerge in the coming years, one thing is for sure — genAI will completely transform the way we interact with our smartphones,” said Nabila Popal, senior research director with IDC’s Worldwide Tracker Team.

In its report, IDC said genAI smartphone shipments are forecast to reach 70% of the market by 2028. This year alone, AI-enabled smartphone shipments are expected to grow with more than 360%, representing 234.2 million phones. That represents 19% of the overall smartphone market in 2024.

As phones capable of running genAI features on the device become more popular, the potential for more personalized and proactive AI assistants becomes increasingly likely, IDC said. “This evolution, driven by consumer demand, application developments, and overall industry growth, promises to make the next decade the most exciting period for the smartphone market,” IDC said.

Experts see AI features and tools moving more to the edge — being embedded on smartphones, laptops and IoT devices — because AI computation is done near the user at the edge of the network, close to where the data is located, rather than centrally in a cloud computing facility or private data center.

Expect a migration from the cloud to the edge…

That’s why AI will migrate away from the cloud, according to Gold.

“We expect the largest portion of all AI workloads to migrate to the edge over the next few years, running close to the intended use case,” Gold wrote in a recent research report. “This is both for improved functionality and latency and increased privacy/security. It’s also necessary to offload the need for movement of large amounts of data to centralized computing platforms in the cloud or data center, which is expensive and impacts performance.”

Edge deployments will include running remote cloud instances on localized devices, so remote hyperscaler products should be well positioned for AI’s edge migration. “This presents a significant opportunity for AI expansion and for vendor fulfillment of systems and services,” Gold said.

Tiffany Yeung, an Nividia product marketing manager, wrote in a blog post that since AI algorithms are capable of understanding language, sights, sounds, smells, temperature, faces and other analog forms of unstructured information, “they’re particularly useful in places occupied by end users with real-world problems.”

GenAI smartphones that feature a system-on-a-chip (SoC) are capable of running on-device AI models more quickly and efficiently, according to IDC. And genAI smartphones can leverage NPUs with 30 tera operations per second (TOPS) — or more — using the int-8 data type, (in other words, an 8-bit integer).

…and bigger upgrade cycles

Despite sometimes long mobile refresh cycles and economic unknowns, genAI capabilities on smartphones will drive upgrade cycles and represent a significant opportunity for both hardware makers and app developers alike, IDC said.

“The dramatic growth seen in 2024 will carry into 2025, with shipments of genAI smartphones expected to grow 73.1% year over year. By 2028, IDC forecasts 912 million genAI smartphone shipments, resulting in a 2024-2028 compound annual growth rate (CAGR) of 78.4%.

“The rapid incorporation of genAI in smartphones is unprecedented in mobile history, with market penetration expected to exceed 60% within the first three years,” IDC’s Popal said. “However, the most significant impact of this evolution is anticipated in 2026, when mid-range devices are expected to adopt this technology, making a momentous leap towards the democratization of GenAI.”

Apple beat expectations in its third quarter and has wind beneath its wings on strength of the recent Microsoft/Crowdstrike debacle that cost companies billions of dollars. The tide is turning, and turning fast. 

Regular readers will know we’ve been reporting on the steady rise of Apple in the enterprise over the last decade or so. By focusing on what users need, the company eventually built a platform for better business — and companies everywhere are migrating to Apple. Multiple data points show that given the choice, most people will choose an Apple product for work; the buoyant Apple enterprise ecosystem shows this.

Corporate America is upset 

During Apple’s financial call, we learned that American Express now has a growing fleet of more than 10,000 Macs, while insurance and financial services company USAA has begun provisioning its employees with Macs. 

“Turning to [the] enterprise, we continue to see businesses leveraging our entire suite of products to drive productivity and creativity for their teams and customers,” said Apple Chief Financial Officer Luca Maestri. 

This pattern will accelerate as executives deal with the fallout of the recent Crowdstrike outage. Parametrix estimates insured losses could reach $1 billion across Fortune 500 companies, though actual losses will be far, far higher: around $5.4 billion. 

The impact on healthcare was particularly significant. Patients saw operations cancelled while healthcare management saw $1.94 billion in damages, according to Parametrix. That is a lot of cash to lose. 

Windows, the most fragile platform — Delta

“When was the last time you heard of a big outage at Apple?” Delta CEO Ed Bastian asked CNBC, while characterizing Windows as “probably the most fragile platform.”

You can understand his annoyance. “We had 40,000 servers we had to physically touch and reset,” Bastian said, pegging the cost so far at half a billion dollars in five days. 

He seemed pretty unimpressed with the “free consulting” his company was offered in response to the disaster, which has had both financial and reputational damage to the firm. And now the airline faces a federal investigation into how it handled the outage created by Crowdstrike.

Delta has engaged counsel to seek damages and other impacted enterprises will probably take similar flights of action — though these may not succeed. (Even if they do, it is doubtful enterprises will in future agree to the same terms and conditions of sale.) CrowdStrike Shareholders have launched a class action suit, too. This story seems unlikely to end particularly well.

Follow the leader

Apple removed access to the kernel, which is what generated the problem, years ago. Microsoft has claimed the reason its OS is vulnerable to such attacks is the fault of a deal it reached with the European Commission.

In a triumph of pyrrhic marketing, it says that deal means it can’t provide an operating system as secure as Apple’s because it can’t remove developer access to the kernel. Microsoft’s report into the incident suggests the company might now move in the same direction.

However, even since Crowdstrike, business-damaging flaws in Microsoft 365 and Windows Server that have nothing to do with kernel access have emerged. These support Bastian’s claims around “fragility” and are a scale of magnitude worse than the few hours of lost iCloud Private Relay access some Apple customers have endured in the same time frame. There’s simply no comparison.

People can’t help but notice.

The enterprise is taking flight

Delta’s Bastian likely reflects what many C-class executives think at this juncture. They’ve lost money, feel uncompensated, and also know that when employees walked into work on Crowdstrike day, only the people using Macs kept working. 

People don’t forget things like that.

To some extent, the writing has been on the wall for a while. Think back to when then IBM CIO Fletcher Previn surprised everyone with news that even with their higher initial cost, Macs are cheaper to run than PCs. Previn is now at Cisco, his findings remain the same to the extent that the company is now 60% Mac. One big reason for the TCO advantage is the Macs’ relative stability and lower security and tech support costs — all of which were brightly illustrated by the Microsoft/Crowdstrike event.

All things in the balance, it looks very likely that when it comes to the switch to Apple systems, the enterprise is taking flight. Which will do no harm at all to Apple’s future revenues — and might actually improve business revenues for everyone else, as well.

More from Jonny Evans

• Apple adds ‘black magic’ AI security to Swift
• ChatGPT and Siri betas battle on iPhone
• Apple Intelligence: Coming to an app near you

Please follow me on Mastodon, or join me in the AppleHolic’s bar & grill and Apple Discussions groups on MeWe.

Music label companies Universal Music Group, Warner Music Group and Sony Music Group sued AI startups Suno and Udio in June, arguing that the companies had trained their AI model by collecting copyrighted material from the internet.

Now, according to Engadget, Suno has confirmed that its AI model was indeed trained on copyrighted material from all three major music companies — but it argues the training counts as “fair use” under US law. This means the use of the material constitutes an exception to copyright regulations.

“It is fair use under copyright law to make a copy of a protected work as part of a technological process, which is invisible to the public, in order to create a new end product that is not infringing,” Suno wrote in a statement.

Not surprisingly, the music companies disagree. “Their industrial infringement does not qualify as ‘fair use,'” said a spokesperson for the music labels in response to Suno’s claims. “There is nothing fair about stealing an artist’s life’s work, extracting its core value and repackaging it to compete directly with the originals. The defendants had a legal way to bring their products and tools to market — to obtain consent before using their works, as many of their competitors have already done. Unfair competition is directly relevant in these cases.”

Six years ago, the end of net neutrality in the US meant that carriers such as AT&T and Verizon were free to prioritize certain services at the expense of others.

Since becoming taking office in 2021, President Joseph R. Biden Jr.’s administration has been trying to reverse that decision and restore net neutrality. Those efforts hit another snag this week when the Sixth Circuit Court of Appeals decided to block the government’s plans to reinstate rules that were in place before 2018.

As a result, there will be no change before the presidential election in November.

“The American public wants an internet that is fast, open and fair. Today’s decision is a setback, but we will not give up the fight for net neutrality,” US Federal Communications Commission Chairman Jessica Rosenworcel said in a comment to the Reuters news agency.

After two years of massive layoffs at IT companies, 2024 was expected to be a year of recovery for the IT industry. While there are early signs of that, with global IT spending expected to increase 8% to cross $5.1 trillion in 2024 according to Gartner, jobs continue to be impacted in the sector. Some of the layoffs being seen this year are an extension of job cuts announced in 2023.

Last year, tech giants including Amazon, Cisco, Facebook parent company Meta, Microsoft, Google, IBM, SAP, and Salesforce—as well as many smaller companies —announced sweeping job cuts.

The problem: Big Tech went on a hiring binge during the pandemic when lockdowns sparked a tech buying spree to support remote work and an uptick in e-commerce, and now they face revenue declines.

According to data compiled by Layoffs.fyi, the online tracker keeping tabs on job losses in the technology sector, 1,186 tech companies laid off about 262,682 staff in 2023, compared to 164,969 layoffs in 2022. In 2024, 168 tech companies have already laid off 42,324 employees.

Here is a list—to be updated regularly—of some of the most prominent technology layoffs the industry has experienced recently.

Tech layoffs in 2024

• Intel
• Dell
• Cisco
• Docusign
• Microsoft
• SAP
• EBay
• Google
• Alphabet

August 1: Intel removes 15,000 roles

Intel plans to cut its workforce by around 15% to reduce costs after a disastrous second quarter. Revenue for the three months to June 29 stagnated at around $12.8 billion, but net income fell 85% to $83 million, prompting CEO Pat Gelsinger to bring forward a company-wide meeting in order to announce that 15,000 staff would lose their jobs. “This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history,” Gelsinger wrote in an email to staff, continuing: “Our revenues have not grown as expected — and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low. We need bolder actions to address both — particularly given our financial results and outlook for the second half of 2024, which is tougher than previously expected.”

April 1: Dell acknowledges 13,000 job cuts

Dell Technologies’ latest 10K filing with the US Securities and Exchange Commission disclosed that the company had laid off 13,000 employees over the course of the 2023 fiscal year; it characterized the layoffs and other reorganizational moves as cost-cutting measures. “These actions resulted in a reduction in our overall headcount,” the company said. A comparison to the previous year’s 10K filing, performed by The Register, found that Dell employed 133,000 people at that point, compared to 120,000 as of February 2024. Dell announced layoffs of 6,650 staffers on Feb. 6, but it is unclear whether those cuts were reflected in the numbers from this year’s 10K statement.

Feb. 14: Cisco cuts 5% of workforce

Cisco will shed 4,200 of its 84,900 employees as it refocuses on more profitable areas of its business, including AI and security. The company’s last major round of layoffs was in November 2022. Cisco’s sales of telecommunications equipment have been hit by delays at telcos in rolling out equipment they havealready purchased. AI, on the other hand, is a growing business for Cisco, with AI-related sales in the billions—and that’s before it announced its recent partnership with Nvidia, which is making bank on sales of chips for AI applications. 

Feb. 6 DocuSign will lay off 6% of workforce in restructuring

Digital workflow company DocuSign will lay off 440 of its 7,336 staff as it seeks to cut costs. The lay-offs come amid reports that attempts to sell the company to investment firms have fallen apart after a failure to agree on price.

Jan. 25: Microsoft axes 1,900 workers in its gaming division

Roughly 8% of Microsoft’s Gaming division is headed for unemployment, the company announced Thursday, with the lion’s share of job cuts affecting the newly acquired Activision Blizzard subsidiary. Microsoft completed its purchase of Activision Blizzard in October 2023, paying nearly $69 billion. About 1,900 employees will be let go, along with two executives at Blizzard: Mike Ybarra and Allen Adham. A pending survival game title, according to Reuters, has also been cancelled. The layoffs were largely expected in the wake of the Microsoft acquisition.

Jan. 24: SAP announces $2.2B restructuring program that’ll impact 8,000 jobs

German enterprise software giant SAP said this week that 8,000 jobs will be “impacted” by a large-scale shift in company priorities towards generative artificial intelligence (genAI). It’s unclear how many of the affected employees will be laid off, as the company has said many of the impacts will involve “voluntary leave programs and internal re-skilling measures.” SAP said the restructuring will not result in an overall loss of headcount. The company cut more than 3,000 jobs in 2023. Analysts expect the move to skew SAP’s workforce younger and more expert in genAI.

Jan. 23: EBay slashes 1,000 jobs as expenses rise

Online retailer eBay plans to cut nearly 10% of its workforce—about 1,000 jobs—saying “in an official blog post that “headcount and expenses have outpaced the growth of our business.” All of the company’s US workforce was told to work from home Wednesday as the firings were carried out via Zoom. Additionally, eBay said it would “scale back” on its work with outside contractors in a further attempt to rein in costs. The company fired 500 workers last year after sales slackened in the wake of the pandemic boom, according to NPR.

Jan. 17: Google to replace part of ad sales team with AI

Google’s ad sales team lost several hundred staff from its large customer department, part of the company’s move to automate some jobs with machine learning. Reports suggest that more staffers from the ad sales team were also let go in October 2023. The company also laid off hundreds more employees from its digital voice assistant, Fitbit, and Pixel teams earlier in the week. Google has been steadily shedding jobs since January 2023, when parent company Alphabet downsized its entire workforce by 6% across the board, putting 12,000 people out of work.

Jan. 11: Alphabet lays off hundreds from engineering, hardware, and digital assistant teams

Alphabet announced that it is laying off hundreds of employees from several teams, including engineering and the teams responsible for its digital voice assistant and hardware products, including Fitbit wearable devices and Pixel smartphones. The reorganization of the hardware teams will see a consolidation of different teams responsible for different devices, such as Nest, Pixel, and Fitbit, combined under a single team, which will be responsible for all devices, the news portal reported, adding that the activity has also seen the departure of Fitbit co-founders James Park and Eric Friedman.

Tech layoffs in 2023

• Broadcom
• Amazon
• Splunk
• Stack Overflow
• Qualcomm
• Meta
• Alphabet
• Cisco
• Oracle
• Red Hat
• …and more

Dec. 4: Twilio sheds jobs in third round of layoffs

Twilo’s third significant staff reduction in the past year saw the likely loss of 300-400 workers at the cloud communications company. The most heavily affected were workers in the sales teams for the company’s contact center software and consumer data products. Twilo said in a statement that the layoffs were necessary to “optimize” the company’s technology, data and analytics business for growth. The employees affected were given 12 weeks of salary as a severance package, plus additional pay for every year worked at the company. The costs of the layoffs and associated severance payments were estimated by Twilo at between $25 million and $35 million.

Dec. 1: Broadcom to lay off over 1,200 VMware employees as deal closes

Mere days after the final closing of Broadcom’s mammoth $69 billion acquisition of VMware, Broadcom laid off 1,267 VMware employees. The move had been long feared among VMware workers, according to multiple reports. The affected employees mostly worked at VMware’s Palo Alto offices, and a filing with the California Employment Development Department detailed that further job cuts were on the table. Stephen Elliot, a group vice president at IDC, said that the layoffs were likely to be greeted with approval by VMware’s customers and partners, and viewed as a refocusing of the company’s efforts.

Nov. 20: Amazon to cut jobs at Alexa unit to sharpen focus on generative AI 

Amazon confirmed that it is planning to lay off several hundred workers at its Alexa division as part of a shift in focus to generative AI. “As we continue to invent, we’re shifting some of our efforts to better align with our business priorities, and what we know matters most to customers—which includes maximizing our resources and efforts focused on generative AI,” the company said in a statement. Amazon has already undertaken multiple rounds of layoffs in the last 12 months and this is not the first time Amazon’s devices and services team, which includes those working on the company’s Echo devices and Alexa, has been cut back. Employees in this department were part of 18,000 jobs Amazon axed at the start of 2023.

Nov. 1: Splunk cuts 7% of workforce ahead of Cisco acquisition

Network management and visualization vendor Splunk announced it would be cutting about 560 jobs as part of a global restructuring. The announcement comes after Splunk announced a first wave of 325 job cuts in February. “The overall market has retracted and we expect the macro environment will continue to be unpredictable for the foreseeable future,” said Splunk president and CEO Gary Steele in message to employees. He added that the job cuts are unrelated to the company’s pending $28 billion acquisition by networking giant Cisco, which was initially announced in September of this year, stating that the changes were simply the continuation of “important initiatives” Splunk has undertaken to align its resources and operating structure.

Oct. 19: Nokia to cut 14,000 jobs in an attempt to salvage falling profits

Telecom giant Nokia announced it will be cutting up to 14,000 jobs, a decision it blamed on the slowing demand for 5G equipment. The news comes after the company reported that its third-quarter net sales declined by 20% year-on-year, with profit over the same period dropping by 69%. Nokia said that as a result, it will be implementing cost-cutting measures to try and save between $842 million and $1.2 billion by 2026, eliminating $422 million worth of costs in 2024 and a further $316 million in 2025.

Oct. 16: Generative AI forces Stack Overflow to lay off 28% of its workforce

Stack Overflow said it was laying off nearly a third of its workforce to replace it with generative AI-driven coding assistants, such as Microsoft Copilot, Amazon CodeWhisperer, and Google Bard. The downsizing activity, which impacted the go-to-market and support teams, was a result of the company’s strategy to focus on its products and move toward profitability, especially at a time when macroeconomic conditions are uncertain, company CEO Prashanth Chandrasekar wrote in a blog post.

Oct. 13: Qualcomm to lay off 1,258 employees from its California offices

Qualcomm is set to cut 1,258 employees by December this year, according to filings made to the state’s Employment Development Department. Layoffs at the chipmaking giant will affect its San Diego and Santa Clara offices and encompass roles such as engineers, analysts, software developers, and employees in finance, legal, and human resources. These job reductions are a response to the company’s recent financial struggles, with revenue down 23% year-on-year and net income down 52% for the quarter ending June.

Oct. 4: Meta to lay off staffers at its Facebook Agile Silicon Team: Report

Facebook’s parent, Meta, laid off employees from its metaverse custom silicon unit, affecting Facebook’s Agile Silicon Team or FAST, according to a Reuters report. FAST is home to nearly 600 Facebook employees, according to the report. The job cuts at FAST come just days after the company released its Quest 3 mixed reality headsets, which are expected to offer a metaverse play.

Sept. 15: Low-code platform provider Airtable enacts new round of layoffs

Airtable, a low-code software company, underwent its second round of layoffs within nine months, cutting around 237 employees, equivalent to 27% of its workforce. CEO Howie Liu explained that these measures aim to target large enterprise clients and regain control over spending. This move follows a similar downsizing effort in December 2022, which affected 254 employees. Airtable anticipates achieving cash-flow positivity after these layoffs. The decision reflects a post-pandemic shift from hypergrowth to a more sustainable business model.

Sept 14: Alphabet layoffs: Company trades recruitment team for tech talent

Alphabet, the parent company of Google, initiated another round of layoffs, this time affecting hundreds of employees within its recruiting team. The move is part of Alphabet’s ongoing efforts to streamline its operations and increase efficiency amid economic uncertainties. The tech giant is grappling with fierce competition from industry rivals like Microsoft, AWS, IBM, and Oracle, particularly in the field of generative AI and artificial intelligence. In a strategic shift, Alphabet is focusing its workforce toward engineering and technical roles, reflecting a broader trend in the tech industry.

August 14: SecureWorks lays off 15% of workforce

Cybersecurity company SecureWorks announced it is laying off 15% of its workforce, around 300 employees. This constitutes the second round of layoffs enacted by company this year, with the company announcing a 9% reduction in the size of its workforce in February. In a regulatory filing, SecureWorks said that it would incur about $14.2 million in expenses due to the layoffs, mostly related to employee termination benefits and real-estate costs. “We are announcing actions to simplify and scale our business and to deliver profitable growth,” wrote CEO Wendy Thomas in an email to employees on August 14, adding that the company would be “continuing to invest in the growth of our business, aligned to our strategic priorities.”

August 8: Cybersecurity company Rapid7 cuts 18% of workforce

US cybersecurity firm Rapid7 announced plans to lay off 18% of its workforce, approximately 400 global employees. “As we accelerate our delivery of the leading security operations solution and service platform experience to customers, we have determined it is necessary to restructure our operations, including the difficult decision to reduce our team in the near term,” CEO Corey Thomas said in a letter to staff. In a regulatory filing with the SEC, Boston-based Rapid7 estimated that the restructuring plan will incur costs of between $24 million-$32 million in charges and will be “substantially complete” by the end of the fourth quarter of 2023. The company added that it also plans to permanently close a number of undisclosed office locations as a result of the restructuring, which will cost an additional $4 million. The announcement was made in tandem with Rapid7’s 2023 second quarter financial results, where the company reported a loss of $66.8 million during the three-months ending June 30.

July 20: Cisco says this week’s layoffs were announced last November

Networking giant Cisco Systems announced another round of layoffs. Despite employees viewing the move as fresh cuts, the company clarified that these layoffs were part of the restructuring plan announced in November 2022, which included eliminating around 5% of its 83,000 workforce. The reduction aims to rebalance the organization and prioritize investments in key areas, Cisco said. Cisco reiterated that the layoffs aren’t solely driven by cost savings, but by the need to adapt to the changing technology landscape. The company plans to support affected employees with generous severance packages and assistance in finding new roles. However, disgruntled employees expressed dismay, highlighting the impact of losing jobs regardless of whether they were previously announced.

July 8: Evernote lays off US, Chile staff as it moves to Europe

Evernote, the maker of the note-taking app of the same name, is laying off most of its staff in the US and Chile and moving to Italy, the home of its corporate parent, Bending Spoons. “Going forward, a dedicated (and growing) team based in Europe will continue to assume ownership of the Evernote product,” company CEO Francesco Patarnello said in a message to employees. He did not specify the number of staff to be laid off, but said that affected employees in most cases will receive 16 weeks of salary, up to one year of health insurance coverage, and a performance bonus. Bending Spoons, which acquired Evernote in November last year, had enacted a round of layoffs in February that affected more than 100 employees.

June 16: Despite growth, Oracle reported to cut jobs at Cerner healthcare unit

Oracle laid off hundreds of employees and rescinded job offers for its Cerner healthcare unit, acquired earlier this year for $28 billion, according to a report by Insider. The layoffs were reportedly due to problems with Cerner’s project for the US Department of Veterans Affairs Office. The VA has raised concerns about technical glitches and patient safety issues with its new electronic health record system, and the layoffs cast a shadow over Oracle’s optimistic outlook for Cerner. Company executives expect Cerner to be a crucial factor in future growth, considering the healthcare industry’s ongoing digital transformation as the sector adopts electronic healthcare records. Just days before the Cerner layoffs came to light, Oracle announced that quarterly cloud revenue experienced a significant surge, increasing 54% year-over-year and contributing to record sales for the fiscal year.

June 1: Zendesk to lay off another 8% of its staff, cites macroeconomic issues

CRM software provider Zendesk implemented a new round of layoffs, reducing its workforce by a further 8% due to ongoing macroeconomic uncertainty and increased competition from rivals. The move came just six months after the company laid off 300 employees for similar reasons. CEO Tom Eggemeier announced the decision in an email to all employees, which was later posted as a blog. Eggemeier highlighted the need to align the company’s employee structure with customer goals, as enterprise customers consider adopting newer technologies like generative AI. Eggemeier said he believes Zendesk has an opportunity to lead in the new era of intelligent customer experience (CX), with solutions such as Zendesk AI and Conversational Commerce.

May 11: Developer-focused portal Stack Overflow lays off 10% of staff

Stack Overflow, the question-and-answer portal for developers, announced that it will lay off 10% of its workforce, affecting at least 58 employees. The job cuts come as the company shifts its focus to profitability amid macroeconomic concerns, according to a blog post by CEO Prashanth Chandrasekar. Affected employees include UX designers, HR professionals, product designers, and senior software developers. To improve profitability, Stack Overflow plans to launch AI and ML-based offerings in the coming months. This move is likely in response to demand from enterprises for generative AI and natural language processing capabilities, as vendors like AWS, IBM, and Google have launched new product offerings in this space.

May 9: LinkedIn lays off 716 staffers, to shut China job app

Employment-focused social media platform LinkedIn on Tuesday said it would let go of 716 staffers as it shuts down a job search app in China and prepares for tapering revenue growth.  According to a letter to employees from CEO Ryan Roslansky, the layoffs were designed to reorganize the company and become more agile. He noted that the company had experienced shifts in customer behavior and slower revenue growth in recent months. In addition to the layoffs, the company will spin up 250 new roles in specific segments of its operations, new business, and account management teams starting May 15. The company will also phase out the local job app InCareer by August 9, 2023, as part of its business strategy changes in China.

May 4: Cognizant cuts 3,500 jobs in post-COVID, hybrid work restructuring plan

Technology services and consulting company Cognizant is set to cut around 1% of its global workforce, or approximately 3,500 employees, in a bid to reduce costs. Despite posting a 3% increase in net profit year-on-year for its most recent quarter, Cognizant CEO Ravi Kumar said the company was monitoring an uncertain macroeconomic environment and potential shifts in client priorities. The job cuts are part of the company’s NextGen program, which aims to simplify its operating model and realign office space. Cognizant has not confirmed where the affected workers are based, but it did say the cuts would mostly affect non-billable roles. In a statement, Cognizant said the changes reflect the post-pandemic hybrid work environment, and its drive for simplification includes operating with fewer layers to enhance agility and enable faster decision-making.

April 27: Dropbox lays off 16% of staff to refocus on AI, as sales growth slows

Facing a slowdown in revenue growth, cloud storage company Dropbox announced that it is laying off 500 employees, or 16% of its workforce, mainly in order to be able to hire staff with AI expertise. Although revenue for the fourth quarter last year—the last quarter for which Dropbox reported earnings—was up by 5.8% year over year to $598.8 million, the company has experienced a slowdown in sales recently. Meanwhile, in order to stay competitive, the company needs to ramp up its AI capabilities, CEO Drew Houston said in a note to employees.

April 24: Red Hat cuts 4% of global staff

Enterprise Linux giant Red Hat announced it will lay off almost 4% of its global staff, or about 800 workers, noting that the cuts will affect general administrative staff, not technical workers or sales people. The company has helped boost sales for corporate parent IBM, which reported that in the first quarter of the year, Red Hat revenue jumped 8% year over year. Despite the sales growth Red Hat CEO Matt Hicks said that a staff restructuring was necessary to ramp up efforts to bolster the company’s open hybrid cloud strategy, particularly for the industries including  telecommunications and automotive.

April 20: Technical teams hit by Meta’s latest wave of layoffs

Facebook’s parent company, Meta, initiated another round of  layoffs. These were previosuly announced—the difference this time is that many of the cuts reportedly affect technical employees. The latest wave of job cuts will see approximately 4,000 employees laid off from the company, including those in user experience, software engineering, graphics programming, and gameplay programming. The timeline for the cuts may differ, depending on the locations employees, Meta said. Instagram, a Meta subsidiary, is also downsizing or relocating UK-based staff, with the app’s head, Adam Mosseri, moving back to the US.

March 30: Kyndryl lays off staff in search of efficiency

Kyndryl, the managed IT services provider that spun out of IBM, announced layoffs affecting its internal IT services to streamline operations and become more competitive. The exact number of affected employees was not disclosed, but anonymous comments on job-loss monitoring website The Layoff.com suggested that staff in IT asset management roles and Kyndryl’s own CIO organization were among those let go. Kyndryl, which employs 90,000 globally, has been facing declining revenue and slow growth since its separation from IBM.

March 23: Accenture to lay off 19,000 to cut costs amid economic uncertainty

IT services and consultancy firm Accenture announced it would lay off 19,000 employees, or 2.5% of its workforce, over the next 18 months to reduce costs amid uncertain economic conditions. Tech workers were expected to be largely spared though, as the company said the cuts would primarily affect non-billable corporate functions. The decision came as demand for services stabilized following post-pandemic growth, and Accenture also lowered its fiscal year 2023 revenue growth forecast. Despite the reduced forecast, Accenture’s diversified business and industry mix is expected to provide stability for the tech services giant.

March 20: Amazon to lay off 9,000 more workers, including some at AWS

Amazon said it plans to lay off about 9,000 more workers from several business units, including AWS, PXT (People Experience and Technology, the company’s HR arm), Advertising, and Twitch. The announcement came two months after Amazon unveiled plans to lay off 18,000 employees. AWS is a big revenue generator for Amazon but has not been immune to current macroeconomic conditions. Revenue growth slowed sharply in the fourth quarter of 2022, to 20% in year-on-year terms. That’s well below the 27.5% and 33% figures seen in the previous two quarters. 

March 14: Meta cuts an additional 10,000 jobs from global workforce

Four months after social media giant Meta confirmed that it would cut 13% of its global workforce—amounting to 11,000 jobs—the company announced a further 10,000 layoffs. Additionally, Meta said that it would leave 5,000 currently empty roles unfilled. Founder and CEO Mark Zuckerberg cited difficult macroeconomic conditions and a focus on “flattening” the company’s organizational structure as key factors in the decision to cut more staff.

March 7: Atlassian lays off 5% of staff to refocus on cloud, ITSM

Collaboration software company Atlassian said that it plans to fire 500 employees, or around 5% of its overall workforce. The Australia-based company said that the job losses were organizational, and not driven by a need to cut costs—despite posting a net loss in its February financials, Atlassian saw its revenue grow 27%, to $873 million in the last quarter.

Feb. 27: Twitter stealthily lays off 10% of remaining workers, including tech staff

This round of Twitter layoffs saw the embattled social media platform lose 10% of its remaining workers, as about 200 were fired. The layoffs included startup founders whose companies had been absorbed by Twitter, including Esther Crawford, most recently the head of Twitter Blue. Twitter has fewer than 2,000 workers left on staff, down from about 7,500 just before Elon Musk bought the company in late October 2022.

Feb. 13: Twilio announces fresh round of layoffs, impacting 17% of its workforce

Twilio announced that it would slash its workforce by roughly 1,400, months after laying off an additional 816 during the fourth quarter of 2022. The cloud communications company said also that it would reorganize internally, creating two new business units, Twilio Communications and Twilio Data & Applications, in an official blog post. Before these two recent rounds of layoffs, the company employed nearly 9,000 workers.

Feb. 10: Microsoft cuts HoloLens, Xbox, Surface jobs as industrial metaverse team said to fold

Microsoft confirmed that it is cutting employees working on its HoloLens, Surface laptop and Xbox products, as reports surfaced that the tech giant will be laying off 100 employees working for its industrial metaverse team and closing that unit. The move to cut staff working on HoloLens and in its industrial metaverse team came as a surprise since the the company had made recent moves to expand efforts to move its augmented reality,  virtual reality and metaverse initiatves from the consumer to the enterprise side. In a statement, though, Microsoft said it was committed to the industrial metaverse. The company did not specify how many jobs it would cut in those areas, though a Worker Adjustment and Retraining Notification (WARN) from Washington state Friday noted that Microsoft had reported that 617 employees would be laid off in Redmond, Bellevue and Issaquah.

Feb. 10: Yahoo to lay off 20% of its staff as it cuts advertising tech business

Yahoo said it will lay off about 20% of its staff, or apporximately 1,600 workers, by the end of year, according to media reports confirmed by the company. The move is aimed at restructuring the company’s advertising technology business unit and reallocating its finances more efficiently. The layoffs mark the end of Yahoo’s attempts to be a direct competitor to Google and Meta in the digital advertising market.

Feb. 9: GitHub lays off 10% workforce, plans to go fully remote to cut costs

Microsoft-owned software development and version control service provider GitHubowned by Microsoft said it would be cutting 10% of its workforce, or about 300 employees, and moving  the remaining staff to remote work in order to safeguard the company’s immediate financial stability.

The layoffs came about a month after the company enacted a hiring freeze.

Feb. 7:  Zoom lays off 15% of its workforce after growth spurt during pandemic

Cloud-based videoconferencing service provider Zoom said that it was laying off 15% of its workforce, fearing uncertain macroeconomic conditions. The move came after the company went on a hiring spree during the pandemic.

In addition, Zoom said it is also making changes in team structure and several members of its leadership team will take pay cuts.

Feb. 6: Dell Technologies to lay off 6,650 staffers

 Due to declining PC sales and infrastructure requirements, Dell Technologies said it would lay off 6,650 workers, or about 5% of its total workforce. In addition to the downsizing, Co-Chief Operating Officer Jeff Clarke said the company would introduce changes that include changing the structure of its sales team and integrating the services division of its consumer and infrastructure businesses.

Feb. 2: Splunk to lay off 4% of its workforce to reduce costs

In a company filing with the US Securities and Exchange Commission (SEC), Splunk said it would be laying off 4% of its workforce as part of broader measures to optimize costs and processes ahead of uncertain macroeconomic conditions. The decision to downsize will affect 325 employees at the company, mostly in the North America region.

Feb. 1: PayPal to lay off 2,000 employees

In a message shared with PayPal employees and posted on the company’s online newsroom, PayPal President and CEO Dan Schulman said the company was set to cut 2,000 jobs, about 7% of its workforce.

Although the company beat analyst expectations in November when it reported its third quarter financial results, PayPal downgraded its forecast for the fourth quarter, citing a challenging macro environment and slowing e-commerce trends.

Jan. 26:  SAP announces 2,800 job cuts, says they’re unrelated to over-hiring or performance

Despite revenue rising 11% in 2022, during an announcement about its fourth quarter financial results, SAP said that due to net income dropping by 68%, the company would be undertaking some restructuring, resulting in layoffs.

Whereas companies such as Google or Salesforce announced across-the-board layoffs based on performance review criteria to reverse over-hiring during the pandemic period, CEO Christian Klein said that the job cuts are part of “a targeted restructuring” and not performance-based.

“We definitely didn’t over-hire,” Klein said, noting that revenue grew faster than SAP employee growth in 2022.

Jan. 26: IBM cuts 3,900 remaining employees after double asset disposal

After spinning off most of its infrastructure management division as a new business, Kyndryl, in November 2021, and selling some assets of its Watson Health business in January 2022, on the same day as IBM’s Q4 2022 results were announced, the company said it was eliminating 3,900 job roles, or 1.5% of its global workforce.

On a conference call with analysts to discuss the results, CFO Jim Kavanaugh didn’t directly mention the job cuts, instead alluding vaguely to the situation by acknowledging the business would have some “stranded costs” to address in early 2023, resulting in a “modest” charge of about $300 million

Later that day, in an interview with Bloomberg, Kavanaugh explained that those stranded costs related to staff left with nothing to do following the asset disposals and as a result, they would be laid off from the company.

In a statement, a spokesperson for IBM said it was important to note the charge is entirely related to the Kyndryl spinoff and healthcare divestiture.

Jan. 20: Google announces it’s cutting 12,000 jobs globally

Google’s parent company Alphabet announced it was cutting 12,000 jobs, around 6% of its global workforce. An internal memo from Sundar Pichai said that he takes “full responsibility for the decisions that led us here.”

The company will be paying affected employees at least 16 weeks of severance and six months of health benefits in the US, with other regions receiving packages based on local laws and practices.

The news comes four months after Alphabet posted lower-than-expected numbers for its third financial quarter, where it fell behind both revenue and profit expectations. However, while overall revenue growth slowed to 6% in the quarter for Alphabet, Google Cloud grew 38% year-on-year to $6.9 billion.

Jan. 18: Microsoft CEO Satya Nadella confirms plan to lay off 10,000 workers

On Jan. 18, Microsoft CEO Satya Nadella confirmed in a blog post that the company would be cutting almost 5% of its workforce, impacting 10,000 employees. 

The chief executive chalked up the downsizing maneuver to aligning its cost structure with its revenue structure while investing in areas that the company predicts will show long-term growth.

The Seattle-based tech giant reported its slowest growth in five years for the first quarter of its fiscal 2023, due largely to a strong US dollar and an ongoing decline in personal computer sales, causing net income to fall by 14% to $17.56 billion from this time last year. Rising cloud revenue helped to soften Microsoft’s growth slowdown.

Jan. 16: Google-backed ShareChat lays off 20% of staff

Google-backed, India-based social media startup ShareChat said it is laying off 20% of its workforce to prepare for oncoming economic headwinds.

“The decision to reduce employee costs was taken after much deliberation and in light of the growing market consensus that investment sentiments will remain very cautious throughout this year,” a spokesperson said.

The move is expected to impact over 400 employees out of the company’s approximately 2,200 staffers. The company did not disclose the roles and the exact number of workers affected by the decision.

Jan. 13: Alphabet robotics subsidiary Intrinsic lays off 20% of staff

Alphabet, Google’s corporate parent, also announced there would be layoffs at its Mountain View, California-based robotics subsidiary Intrinsic AI, eliminating around 20% of its workforce or roughly 40 employees.

“This (downsizing) decision was made in light of shifts in prioritization and our longer-term strategic direction. It will ensure Intrinsic can continue to allocate resources to our highest priority initiatives, such as building our software and AI platform, integrating the recent strategic acquisitions of Vicarious and OSRC (commercial arm Open Robotics), and working with key industry partners,” according to a company statement.

Jan. 12: Alphabet-owned Verily cuts 15% of workforce

Verily—a life sciences firm also owned by Alphabet and headquartered in San Francisco—is downsizing its workforce by 15% to simplify its operating model. The move comes just months after the company raised $1 billion.

According to an email sent by CEO Stephen Gillett to all its employees, the downsizing is part of the company’s One Verily program, which aims to reduce redundancy and simplify operational aspects within the company.

As part of the new One Verily program, the company said it will move from multiple lines of business to one centralized product organization with increasingly connected healthcare systems.

Jan. 11: Informatica to lay off 7% of its workforce to cut costs

Enterprise data management firm Informatica announced plans to lay off 7% of its total workforce through the first quarter of 2023, the company said in a filing with the US Securities and Exchange Commission.

The move by Informatica, headquartered in Redwood City, California, will incur nonrecurring charges of approximately $25 million to $35 million in the form of cash expenditures for employee transition, notice period, severance payments and employee benefits, the company filing showed.

The company said it expects the layoffs to be completed by the first quarter of 2023 but added that there might be limited exceptions.

Jan. 4: Salesforce to cut 8,000 in restructuring plan

At the beginning of 2023, San-Francisco based Salesforce announced it will lay off about 10% of its workforce, roughly 8,000 employees, and close some offices as part of a restructuring plan.

In a filing with the US Securities and Exchange Commission (SEC), the company disclosed that its restructuring plan calls for charges between $1.4 billion and $2.1 billion, with up to $1 billion of those costs being shouldered by the company in the fourth quarter of 2023.

In a letter sent by Salesforce’s co-CEO Marc Benioff and attached to the SEC filing, he told employees that as Salesforce’s revenue accelerated through the pandemic, the company over-hired and can no longer sustain its current workforce size due to the ongoing economic downturn. “I take responsibility for that,” Benioff said.

Jan. 4: Amazon confirms more than 18,000 employees to be laid off

Seattle-based tech behemoth Amazon said it would be laying off more than 18,000 staff, with the bulk of job cuts coming later this month. The news confirmed a December Computerworld article reporting that Amazon layoffs were expected to mount to about 20,000 people at all levels While several teams are impacted, the majority of the job cuts will be in the Amazon Stores and People, Experience, and Technology (PXT) organizations.

According to a note from CEO Andy Jassy, the layoffs are a result of “the uncertain economy.” He also said that Amazon had “hired rapidly over the last several years,” but added that the layoffs will help the company pursue more long-term opportunities with a stronger cost structure.

Intel is making a strategic shift toward AI as it grapples with significant financial difficulties, including an 85% year-on-year drop in second-quarter profit. The company has also announced that it’ll slash over 15,000 jobs as part of its effort to reallocate resources toward AI technology.

In light of ongoing financial struggles and escalating competition from AMD and Nvidia in the AI chip market, Intel is intensifying its investment in the development of next-generation AI chips and the expansion of its chip fabrication capabilities.

This strategic pivot comes as Intel aims to reverse its financial misfortunes and strengthen its position in the competitive AI landscape.

For the quarter ending June 29, Intel reported revenue of $12.8 billion, marking a 1% decline compared to the previous year. Its net income plummeted 85% to $83 million, reflecting the financial strain faced by the company.

In comparison, AMD recently announced impressive earnings with a 9% increase in revenue to $5.8 billion and a 19% rise in net income to $1.1 billion, driven by strong AI data center chip sales. The tech giant is leveraging its AI advancements to enhance its market position, drive growth, and improve financial stability.

Revenue from AI and data center business was down by 3% in the quarter from the corresponding quarter a year ago to clock $3 billion. In the previous sequential quarter, the business unit was seen growing at 5% year-over-year.

“Our revenues have not grown as expected – and we’ve yet to fully benefit from powerful trends, like AI,” Intel CEO Pat Gelsinger said in a note to employees. “Our costs are too high, our margins are too low. We need bolder actions to address both – particularly given our financial results and outlook for the second half of 2024, which is tougher than previously expected.”

Analysts and industry watchers, however, seem to be a bit apprehensive.

“If Intel has to run faster, it will have to shed some fat in order to do so in this AI race,” pointed out Neil Shah, VP for research and partner at Counterpoint Research. “Intensified competition in both the client and data center businesses has widened the gap between revenues and operating costs, which is proving detrimental to Intel.”

“Intel has been directionally wrong for over two decades now,” said Faisal Kawoosa, founder and chief analyst at Techarc. “It once used to be an innovator, trendsetter, and industry leader.”

For about two decades, Intel has been following others instead of trying to lead the market, he said. “It should have been taking the AI bait at least a decade back in terms of a strategic shift.”

AI to the rescue

The investments in AI PC chips along with foundry services will pay off in the long run, Gelsinger said.

“The plan will enable the next phase of our multiyear transformation strategy,” Gelsinger said answering analysts’ queries in the earnings call. “We are focused on reducing operating expenses, capital expenditures, and cost of sales while maintaining core investments to execute our strategy.”

Intel’s planned transformation includes advancements in its AI-driven product lines.

“Intel continues to define and drive the AI PC category, shipping more than 15 million AI PCs since December 2023, far more than all of our competitors combined,” Gelsinger noted in  news release.

The company said that it is “on track to ship more than 40 million AI PCs by year-end.”

“Lunar Lake, our next-generation AI CPU, achieved production release in July 2024, ahead of schedule, with shipments starting in the third quarter. Lunar Lake will power over 80 new Copilot+ PCs across more than 20 OEMs,” the news release added.

“The AI portfolio roadmap looks solid in terms of Lunar Lake for AI PC, Granite Rapids, Clearwater Forest on 18A node for Datacenters and Gaudi 3 for GPUs AI servers,” Shah added. “However,” he noted, “to catalyze this AI roadmap, Intel will have to be leaner and meaner. Investment in AI software, toolsets to optimize the models for the Intel silicon and make it easier for developers to accelerate time to market should be the key focus from the savings coming from cost-reduction measure.”

 It will take at least two to three years for Intel to turn around from the position right now, Shah pointed out.

“It’s essential for them to focus on this exploding opportunity,” Kawoosa said.  “But historically we have seen it’s very difficult to catch up for anyone in the tech world. So, I am little hopeful of anything significant coming out of it.”

In the data center market, Intel introduced its next-generation Intel Xeon 6 processor with Efficient-cores (E-cores), code-named Sierra Forest, marking the company’s first Intel 3 server product architected for high-density, scale-out workloads.

“Our Intel Gaudi 3 AI accelerator is also on track to launch in the third quarter and is expected to deliver roughly two times the performance per dollar on both inference and training versus the leading competitor,” Gelsinger said during the earnings call.

Intel’s foundry operations are also evolving to support its AI ambitions. According to the company, it is nearing the completion of its five-nodes-in-four-years strategy, with Intel 18A on track to be manufacturing-ready by the end of this year and production wafer start volumes in the first half of 2025.

“In July 2024, we released to foundry customers the 1.0 PDK for Intel 18A. Our first two Intel 18A products, Panther Lake for client and Clearwater Forest for servers, are on track to launch in 2025,” Gelsinger added.

Cost reduction strategies and efficiency goals

“Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones,” Gelsinger said during Thursday’s earnings call. “Second-half trends are more challenging than we previously expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiencies while accelerating our IDM 2.0 transformation.”

“These actions,” Gelsinger added, “combined with the launch of Intel 18A next year to regain process technology leadership, will strengthen our position in the market, improve our profitability, and create shareholder value.”

During the earnings call, Intel’s Chief Financial Officer, David Zinsner, elaborated on the financial headwinds and the strategic steps being taken.

“Second-quarter results were impacted by gross margin headwinds from the accelerated ramp of our AI PC product, higher-than-typical charges related to non-core businesses, and the impact from unused capacity,” Zinsner said. “By implementing our spending reductions, we are taking proactive steps to improve our profits and strengthen our balance sheet.”

Zinsner expects these actions to “meaningfully improve liquidity and reduce our debt balance while enabling us to make the right investments to drive long-term value for shareholders.”

Intel’s cost-reduction plan is comprehensive. The company announced a series of initiatives to create a sustainable financial engine that accelerates profitable growth and enables further operational efficiency and agility.

These actions include structural and operating realignment across the company, headcount reductions, and operating expense and capital expenditure reductions of more than $10 billion in 2025 compared to previous estimates.

“Lean operations will give Intel additional resources as well as timeshare to focus on AI than remain entangled in legacy products where with this kind of overhead costs they can only expect incremental growth,” Kawoosa said, adding “Intel needs a big bang to come back.”

By focusing on AI, Intel aims to not only regain its technological leadership but also to create a more resilient and profitable business model. As Intel takes these steps, the company is positioning itself to emerge stronger and more competitive in the AI era.

“Some non-core, less profitable businesses which could be a distraction, could also see divestments or spinoffs,” Shah added.

These days, a relatively clean and uncomplicated Windows 10 or 11 system disk might be home to more than 250,000 files and 90,000 folders. A more complex, application-heavy system disk might contain between half a million and a million files. My Windows 10 production PC has over 2.9M files and 750K folders, for example. My brand-new Lenovo Yoga Slim 7x Copilot+ PC has over 250K files and 55K folders. That’s a lot of stuff!

Indeed, all those files need not necessarily hang around. That’s why it’s a good idea to practice regular disk hygiene. This is exactly what is explained and explored here, with plenty of examples and screen shots to illustrate the cleanup process. Best of all, the tools that help you tidy up won’t cost you a dime.

Step 1: Run built-in Windows disk cleanup tools

From time immemorial, Windows has included a utility for cleaning up disk space — namely, Disk Cleanup, also known as cleanmgr.exe. In Windows 10 and 11, users gained a second method to clean up disk space as part of the Settings-based “Storage Sense” facility aimed at optimizing storage.

There has been speculation that Disk Cleanup might disappear as Settings takes over Windows management and controls. Even so, the Disk Cleanup utility remains ready, willing, and able to work in in Windows 10 22H2 and Windows 11 24H2 as I write this story. Either the Settings or Disk Cleanup approach provides a great way to excise extraneous and unneeded Windows files (for Windows 10 and 11 versions across the board).

Option A: Run Disk Cleanup

1. To launch Disk Cleanup, type disk clean or cleanmgr.exe into the Start menu search box.

2. The Disk Cleanup desktop app should appear at the top of those search results. If you can, select Run as administrator from the resulting options menu. Why? Only then does it offer to clean up redundant or outdated OS files (such as old OS files after an upgrade, or old updates) as well as other Windows leftovers.

3. Select the drive letter for the disk you wish to clean (for many readers this will start with the C: drive where Windows itself resides). Click the OK button to start Disk Cleanup on its merry way.

After Disk Cleanup scans your system’s C: drive, Figure 1 shows a reasonable facsimile of what you’ll see in Windows 11.

Figure 1: Disk Cleanup can sometimes clear out tremendous dreck: 33.5GB in this case.

Ed Tittel / IDG

When you run Disk Cleanup as Administrator, you can clear out previous Windows installations as well as other files. In the example shown here, the earlier Windows installation alone accounts for 25.4GB, with a total potential savings of 33.5GB. That’s a huge chunk of space.

4. Scroll through the checkbox items in the pane labeled “Files to delete” and pick stuff you’d like to lose. The numbers in the right column indicate how much disk space each item occupies. Don’t delete old OS versions or updates if you think you might want to roll back. Note also that the Downloads item represents the contents of your personal Downloads folder, so don’t delete it unless you’re sure you don’t need anything in there.

5. When you’ve made your selections for files to delete, click OK.

This process can — and often does — take several minutes to complete. While it’s running, it looks like what’s shown in Figure 2.

Figure 2: While it’s running, Disk Cleanup shows a progress bar and its current cleanup focus.

Ed Tittel / IDG

Option B: Clean up via Settings Settings-based cleanup in Windows 10:

1. In Windows 10, navigate to Start > Settings > System > Storage > Configure Storage Sense or run it now > Free up space now.

2. On the “Free up space now” pane, click the Clean now button shown in Figure 3, lower left.

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Figure 3: Settings-based cleanup in Windows 10.

Ed Tittel / IDG

This cleans up storage in much the same way as if you’d run Disk Cleanup and clicked all available boxes — removing temporary files, update or upgrade files, delivery optimization files (designed for sharing on your local network but seldom used), obsolete device driver packages, and more. It will also empty the recycle bin. As with running Disk Cleanup, the “Free up space now” option in Settings often takes several minutes to run.

Settings-based cleanup in Windows 11:

Cleanup via Settings in Windows 11 works pretty much the same way, but looks quite different.

1. Navigate to Start > Settings > System > Storage Sense.

2. Scroll down and click the Run Storage Sense now button shown at the bottom of Figure 4.

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Figure 4: To start Settings-based cleanup in Windows 11, click the “Run Storage Sense now” button.

Ed Tittel / IDG

When you do this, a progress indicator shows you it’s working: balls cycle from left to right, then repeat until it’s finished.

On another Windows 11 test PC, it reported, “We were able to free up 2.4GB of disk space.” Easy-peasy.

Step 2: Run PC Manager as a Disk Cleaner alternative

More properly identified as Microsoft PC Manager, this interesting Microsoft Store utility includes a wide-ranging, capable, and surprisingly fast Deep cleanup option, right on home screen. It’s at the lower left in Figure 5.

Figure 5: The Microsoft PC Manager offers a useful “Deep cleanup” facility.

Ed Tittel / IDG

1. To use it, simply click Deep cleanup, and a details screen appears with a list of potential cleanup targets, as shown in Figure 6.

Figure 6: PC Manager’s “Deep cleanup” details, with pre-selected checkboxes (partial view).

Ed Tittel / IDG

Much like the options in Disk Cleanup (but more detailed), it’s a checkbox list of all the things that PC Manager finds that you can elect to clean up or not. By default, this facility checks the usual suspects, as you can see in Figure 6, where Windows Update cleanup items, error reports, temp files, and so forth are already checked.

2. Check the box next to any additional items you want to delete, and uncheck any items you don’t want to delete.

3. When you’ve made your selections, click the Proceed button at upper right to commence scrubbing!

When this facility finishes its work, it reports, “Cleanup completed” and shows the total amount of disk space freed up. Good stuff!

For more information about Microsoft PC Manager (which can do a lot more than clean up files), see section 4 of my November 2023 CW story “How to manually update Windows Defender.”

Step 3: Run UnCleaner to catch what Microsoft  tools miss

Josh Cell is a Francophone developer in Canada who’s built a peachy and free utility called UnCleaner. It can ferret out and remove temporary and obsolete log files that Windows’ built-in utilities and PC Manager don’t catch and kill. You can download the latest version of UnCleaner (1.7) from Major Geeks. Don’t worry that this tool shows a 2012 date: I can attest it still works fine on Windows 10 and 11 systems in mid-2024.

Running on the same production PC upon which I just ran Disk Cleanup and PC Manager’s Deep cleanup, UnCleaner found nearly 70MB of files to clean up despite a notionally clean status, as shown in Figure 7.

Figure 7: UnCleaner can find and clean files that other tools miss.

Ed Tittel / IDG

Simply click the Clean button (lower left) to excise those files. After I did so on my system, UnCleaner’s total for potential cleanup dropped to under 50MB.

You’ll never get this tool to delete everything it reports, because some of those files are locked by Windows runtime constraints. Sometimes — if rarely, in my experience — you’ll see a message that says, “Good. Your system is very clean.” ‘Nuff said!

Step 4: Use DriverStore Explorer to dismiss obsolete device drivers

DriverStore Explorer (RAPR.exe) is a free, open-source tool that you can download from GitHub. Always be sure to grab the most current release (0.11.92 as of this writing). Unless you’re a real Windows driver wizard, you need only click two buttons to make RAPR do its thing: Select Old Driver(s) and Delete Driver(s).

1. You must run RAPR in administrator mode (right-click its icon and select Run as administrator). When you start it up, it can take up to a minute to scan the contents of your PC’s driver store. Eventually, you’ll see a list of installed drivers with checkboxes.

2. Click the Select Old Driver(s) button at the top right of the screen, and the program will automatically check the boxes for the older driver versions it finds. They’re highlighted with blue checkmarks in Figure 8.

Figure 8: Of the 102 duplicate or obsolete drivers on this PC, most come from Intel.

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Figure 8: Of the 102 duplicate or obsolete drivers on this PC, most come from Intel.

Ed Tittel / IDG

Figure 8: Of the 102 duplicate or obsolete drivers on this PC, most come from Intel.

Ed Tittel / IDG

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Ed Tittel / IDG

I used a test PC on which I regularly run the Intel DSA (Driver and Support Assistant): it’s notorious for downloading multiple copies of the same driver. Careful examination of the text at the bottom of the screencap shows that RAPR finds 102 duplicate or obsolete drivers on this PC. Zounds!

3. Click the Delete Driver(s) button, and RAPR will attempt to remove all highlighted items. Thankfully, RAPR won’t actually remove any drivers it finds in use, so this is a surprisingly safe operation.

Notice in Figure 8 that a raft of Intel Bluetooth drivers represents items targeted for deletion. That’s because the Intel Driver & Support Assistant keeps on installing Bluetooth drivers (monthly, if not more often). This makes for lots of duplicates. The selections shown recovered 1GB of disk space and reduced the count of old drivers from 102 to 9 (mostly related to printing and/or graphics: Windows can hang on to them stubbornly).

I’ve seen some RAPR runs recover multiple gigabytes, but space savings are seldom larger than that. First-time users may recover 3 to 5GB when cleaning up numerous driver files. (Graphics drivers often exceed 1GB in size; those add up quickly.)

Power users and experts can find a lot more for RAPR to do (see “How to reduce Windows driver bloat” for details), but most regular users will simply enjoy its ability to clean up old, outmoded drivers.

Step 5: Use DISM to clean the Component Store

Most Windows OS files reside in the WinSxS folder, also known as the Component Store. After you install a cumulative update, and sometimes after other updates, the Component Store may contain duplicate, obsolete, or orphaned elements. You can use the Deployment Image Servicing and Management (DISM) tool at the command line to check the Component Store from time to time. Such checks will tell you if a cleanup is needed.

1. To get started, you’ll need to open an elevated PowerShell or Command Prompt window.

• On the Windows desktop, press the Windows key and X, then select Windows PowerShell (Admin) from the resulting pop-up menu.
• Alternatively, you can type powershell into the Start menu search box, then right-click Windows PowerShell and select Run as administrator from that pop-up menu.

2. In the Administrator: Windows PowerShell window that appears, type this string and hit Enter: dism /online /cleanup-image /analyzecomponentstore

You’ll see something like what’s shown in Figure 9.

Figure 9: DISM /analyzecomponentstore finds two packages for cleanup (reclamation).

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Figure 9: DISM /analyzecomponentstore finds two packages for cleanup (reclamation).

Ed Tittel / IDG

Figure 9: DISM /analyzecomponentstore finds two packages for cleanup (reclamation).

Ed Tittel / IDG

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Ed Tittel / IDG

As I wrote this story, I had just installed a Cumulative Update and other update items earlier that week. Sure enough, /analyzecomponentstore reported that there were two reclaimable packages ready for cleanup. Notice that the response text reported “Yes” in the field labeled “Component Store Cleanup Recommended.” That’s your clue that DISM has something it can clean up on your behalf.

3. To make that happen, in the Administrator: Windows PowerShell window, enter this string: dism /online /cleanup-image /startcomponentcleanup

The results appear in Figure 10, with an extra /analyzecomponentstore operation to show the results of the cleanup.

Figure 10: /startcomponentcleanup does its thing, and /analyzecomponentstore shows a reduced footprint and nothing left that’s reclaimable. Good!

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Figure 10: /startcomponentcleanup does its thing, and /analyzecomponentstore shows a reduced footprint and nothing left that’s reclaimable. Good!

Ed Tittel / IDG

Figure 10: /startcomponentcleanup does its thing, and /analyzecomponentstore shows a reduced footprint and nothing left that’s reclaimable. Good!

Ed Tittel / IDG

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Ed Tittel / IDG

Please note the dual progress lines (the first goes only to 10%, the next all the way to 100%) after the /startcomponentcleanup operation: this is a well-known foible of DISM in x86 Windows versions (both 10 and 11). As far as I can tell, it’s an output glitch. DISM works properly.

Now let’s compare the numbers from the first and second /analyzecomponentstore operations, to wit:

• Size of component store: 13.66GB vs. 9.11GB (diff: 4.55GB)
• Actual size of component store: 12.75GB vs. 8.80GB (diff: 3.95GB)
• Shared with Windows: 6.81GB vs. 6.78GB (diff: 0.03GB)
• Backups and disabled features: 5.81GB vs 2.02GB (diff: 3.79GB)

If you add the savings for “Shared with Windows” and “Backups and disabled features,” you get 3.82GB, which is nearly the savings in the actual size of the component store (3.95GB) — just as it should be. Recently updated systems may recover up to 4 or even 5GB using this technique. (Actual results depend on the number and size of reclaimable packages removed.)

For more incredibly useful things you can do with DISM, see “Why DISM is the Swiss Army knife of Windows maintenance.”

Step 6: Inspect the system drive with WizTree

Once all preceding cleanups are complete, it’s a good idea to inspect the system drive to see where the big files are. I use the free, donation-ware WizTree program, but TreeSize Free is a worthy alternative. Both programs produce treemap diagrams — graphical renderings of disk contents that make it easy to spot big files and folders.

To run a scan of the ever-popular C: drive, here are the steps to follow:

1. Launch the WizTree application.

2. Select the C: (or some other) drive as the scan focus from the pull-down list just below the File and Options menus at upper left (see Figure 11).

3. Click the Scan button to the right of the selected drive. This generates a treemap diagram for the selected drive fairly quickly — usually under a minute, even on ginormous drives. (I just pointed it at a 4TB Hitachi drive and it finished in under 10 seconds.)

Figure 11 shows the C: drive from my Lenovo Yoga Slim 7x Copilot+ PC.

Figure 11: The WizTree drive contents treemap uses box size to show how file (and folder) sizes stack up.

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Figure 11: The WizTree drive contents treemap uses box size to show how file (and folder) sizes stack up.

Ed Tittel / IDG

Figure 11: The WizTree drive contents treemap uses box size to show how file (and folder) sizes stack up.

Ed Tittel / IDG

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Ed Tittel / IDG

In this situation, you’re looking for big files, because getting rid of them provides useful, quick wins in the disk space recovery game. Right here, I see that the largest files are the ones you’d expect to see­ — namely, the system hibernation file (hiberfile.sys) and the system page file (pagefile.sys), in yellow-green near center right.

After those behemoths (6.1 and 1.0GB, respectively), the next largest is named USMT.PPKG. A quick lookup reveals this is output from the User State Migration Tool (USMT), used to snapshot Windows app files and settings. According to the Windows community, this information is part of the Windows Recovery Environment (WinRE) and is thus eminently worth keeping around. Indeed, I don’t see any obvious candidates for clean-up in this recently rebuilt Windows installation.

But let’s pick the USMT.PPKG file as an example anyway. Here’s how you’d get rid of it (or stop short, as we will do):

1. Position the cursor over the file of interest: USMT.PPKG, in this case.

2. Right-click to produce a pop-up menu.

3. On the pop-up menu, click Delete (2nd item from bottom) to remove the selected file. We’ll skip that this time.

By clicking other “big blocks” in the treemap, you can quickly figure out where your biggest potential space recovery opportunities lie. You won’t be able to get rid of all of them — the paging and hibernation files must stay, for example — but if some of them can go, big space savings can result.

For me, that’s often Windows ISO files I no longer want or need. (They usually consume 4GB to 6GB of disk space, so each one tossed is a savings in its own right.)

Step 7: Uninstall unused or unwanted Windows apps

If you really want to clear out some clutter on your disk, consider removing apps you don’t use. Here’s how:

1. Click Settings > Apps > Installed apps (in Windows 11) or Settings > Apps > Apps & features (in Windows 10). You’ll find yourself faced with a list of everything that’s currently installed on the target PC.

2. Off to the right of each app, you’ll see an ellipsis. This is Windows iconography that tells you clicking will show more options. Click the three-dot icon next to any app, and you’ll see a pop-up menu that includes some or all of the following options:

• Modify
• Repair
• Uninstall

3. Getting rid of an app you never use is easy: simply click the Uninstall button.

If you pick the stuff you never use — with certain exceptions, including Microsoft Edge, the Microsoft Store, and the Settings app itself — you can then follow other cleanup recommendations earlier in the story to recover the disk space they would otherwise consume.

The best guidance on this topic comes from Windows 10 Forums and Windows 11 Forum, where you’ll find tutorials that include “uninstall apps” in their titles. Highly recommended to help you pick things to scrap, if you’re of a mind to do so. I remove third-party apps I’m no longer using (as when I switched from WinDirStat to WizTree a few years back), but I prefer to leave Microsoft’s built-in apps alone. Do whatever suits you best.

Practice makes perfect

If you perform such cleanups periodically (I shoot for at least once a month), you’ll be able to keep your space consumption under much better control. Try this regimen out for yourself and you’ll soon see what I mean.

And don’t forget to slog through the Users folder (especially your account subfolder) from time to time, too, because junk too often tends to accumulate there. You can find that folder on your C: drive, where it sits alongside other, well-known top-level folders (e.g., Windows, Program Files, and so forth), as shown in Figure 12.

Figure 12: The Users folder is at the top of the C: drive hierarchy, along with Windows, Program Files, and so forth.

Ed Tittel / IDG

After all the work is done, you can then blissfully enjoy your clean machine!

This article was originally published in January 2019 and most recently updated in August 2024.

Microsoft’s latest outage on Tuesday might have been amplified by its own unforced errors, the company said in an incident report.

“While the initial trigger event was a distributed denial-of-service (DDoS) attack, which activated our DDoS protection mechanisms, initial investigations suggest that an error in the implementation of our defenses amplified the impact of the attack rather than mitigating it,” the report said.

The Microsoft 365 outage on Tuesday is the latest in a series of unforced errors by major IT vendors.

Failure to adequately test systems before roll-out was also a factor in the CrowdStrike incident on July 19, and behind DigiCert’s short-notice revocation of erroneously issued SSL certificates earlier this week.

The July 19 incident was caused by a flaw in CrowdStrike’s security sensor software that cost users millions of dollars in repairs and lost business opportunities, and that testing had failed to uncover.

A root cause analysis of the DigiCert incident showed that there were some process failures during the modernization of a software system that had also been missed during testing.

Steps Microsoft took to mitigate the outage

The latest problems with Microsoft 365 began to appear around 11:45 UTC on Tuesday, when an unexpected usage spike resulted in Azure Front Door (AFD) and Azure Content Delivery Network (CDN) components performing below acceptable thresholds, leading to intermittent errors, timeout, and latency spikes, Microsoft said. 

The dip in performance affected a subset of Microsoft 365 services and other services, including Azure App Services, Application Insights, Azure IoT Central, Azure Log Search Alerts, Azure Policy, as well as the Azure portal itself.

The services impacted included the Microsoft 365 admin center itself, Intune, Entra, and Power Platform.

In response to the outage, the company said that it had started investigations immediately and once it understood that a DDoS attack was behind the network spike, it had implemented networking configuration changes to support its DDoS protection efforts and performed failovers to alternate networking paths to provide relief.

“Our initial network configuration changes successfully mitigated majority of the impact by 14:10 UTC,” the company wrote in the report.

However, it pointed out that despite its early efforts several enterprise customers complained of less than 100% availability, which the company began mitigating at 18:00 UTC.

Without giving further details in the incident report, Microsoft said that it used a different approach to try and solve the issue starting with Asia Pacific and Europe.

“After validating that this revised approach successfully eliminated the side effect impacts of the initial mitigation, we rolled it out to regions in the Americas. Failure rates returned to pre-incident levels by 19:43 UTC,” the company wrote in the incident report, adding the incident was finally mitigated at 19:43 UTC.

Additional steps promised by Microsoft

In its initial report Microsoft said internal teams will be completing an investigation to understand the entire incident in more detail.

“We will publish a Preliminary Post Incident Review (PIR) within approximately 72 hours, to share more details on what happened and how we responded. After our internal retrospective is completed, generally within 14 days, we will publish a Final Post Incident Review with any additional details and learnings,” the company wrote in the report.

This is Microsoft’s 8th service status-related incident this year, according to the company’s service status page.

Last year was also riddled with outages for Microsoft 365 users. Azure’s service page shows that the last incident reported in 2023 was in September, when the US East region faced issues.

Reddit, which has signed cooperation agreements with Google and Open AI — giving both companies the right to train their AI models using the site’s content — is now demanding that Microsoft, Anthropic, and Perplexity do the right thing and sign similar agreements.

According to Reddit CEO Steve Huffman, the three companies have repeatedly used Reddit content to train their AI models, despite not being allowed to do so. Reddit has tried to block access via an updated version of the robots.txt file, but that hasn’t stopped the targeted companies from continuing to collect data.

A spokesperson from Anthropic said in a comment to The Verge that the collection of data from Reddit stopped in mid-May. Microsoft and Perplexity, however, did not immediately commented on Huffman’s claims.

Even though Microsoft invested $13 billion in OpenAI, the relationship between the two companies has deteriorated significantly in recent months.

Microsoft has decided to put OpenAI on its list of competitors, due to the fact that the companies are now competing with each other in terms of both artificial intelligence and online search. (OpenAI last week showed off a preview version of Search GPT, a search engine that could eventually become a serious challenger to Microsoft’s Bing.)

In the past, Microsoft has singled out Amazon, Apple, Google and Meta as its main competitors, according to CNBC .

Download the August 2024 issue of the Enterprise Spotlight from the editors of CIO, Computerworld, CSO, InfoWorld, and Network World.

Homomorphic encryption is a phrase that might never make it to everybody’s lips, but the technology will become part of what we do each day, thanks to Apple, Swift and the need for artificial intelligence (AI) in the cloud. It’s a privacy-protecting technology that lets you secure data in the cloud, work on that data using cloud services, and do all that without anyone other than you knowing what your data is. 

Why does this matter?

Think about it this way. When we store data in the cloud, we already use technology to lock that data down so no one, including the people running the servers, can access it. It’s like putting your data in a safety deposit box only you can open. 

But what we do with cloud data is changing rapidly as a multitude of services appear that let you use powerful AI systems to work with it. To do so, the servers must access your information — they need to open that safety deposit box to work with the information it contains, which makes your data less secure.

What can be done to make it possible to use AI services while leaving data secure? Homomorphic encryption seems to be the answer. 

MIT Professor, Vinod Vaikuntanathan calls that process “black magic” in this video that very clearly explains some of the intricacies of homomorphic encryption. That’s because the encryption tech makes it possible for the server to put its hands inside the safety deposit box and work with data without ever accessing or even knowing what it is working with.

Leaving that data encrypted unlocks the power of cloud-based AI, while also building in privacy. I expect the tech will see use in Private Cloud Compute, though it is not certain to what extent it will be capable of handling large and complex tasks at this point.

How is Apple boosting homomorphic encryption?

Apple already uses homomorphic encryption. Now, it has introduced a new open source Swift package for homomorphic encryption. 

The rationale here is obvious. Unlike so many in the industry, Apple prioritizes user privacy, which it sees as a human right. It is quite plausible that one of the challenges it faced on its road to generative AI has been the need for more complex cloud-based computations to access core data, which conflicts with the company’s privacy goal. The deployment of homomorphic encryption marries those two conflicting aims.

Apple isn’t going quite so far as to say it is about that, even though it evidently is. Instead, it talks about how it uses the tech in its Live Caller ID Lookup feature, which provides caller ID and spam blocking services. In use, this lets Lookup interrogate a server for information pertaining to a phone number without that server ever actually accessing the number itself.

What is a typical workflow?

On its Github page sharing the tech, Apple explains what a typical homomorphic encryption workflow might be:

• The client encrypts sensitive data and sends the resulting ciphertext to the server.
• The server performs computation without learning what any ciphertext decrypts to.
• The server sends the resulting ciphertext response to the client.
• The client decrypts to learn the response.

Apple also provides its own explanation of homomorphic encryption:

“Homomorphic encryption (HE) is a cryptographic technique that enables computation on encrypted data without revealing the underlying unencrypted data to the operating process. It provides a means for clients to send encrypted data to a server, which operates on that encrypted data and returns a result that the client can decrypt. During the execution of the request, the server itself never decrypts the original data or even has access to the decryption key. Such an approach presents new opportunities for cloud services to operate while protecting the privacy and security of a user’s data, which is obviously highly attractive for many scenarios.”

Empowering next-generation AI — securely

Of course, there are challenges here around performance and speed, but it is plausible that Apple’s own servers might already be more than capable, given their computational capacity and low energy requirements. But given that the tech is also thought to be capable of providing data protection against quantum computer attacks, it is certain homomorphic encryption will now become an important force empowering AI on Apple’s platforms down the road.

Please follow me on Mastodon, or join me in the AppleHolic’s bar & grill and Apple Discussions groups on MeWe.

The Biden administration plans to introduce new restrictions on exporting semiconductor manufacturing equipment to China, but key companies including ASML and Tokyo Electron could be exempt, Reuters reports.

The latest measure aims to continue limiting China’s access to critical technology while preserving trade relations with key US allies, including Japan, the Netherlands, and South Korea.

Companies likely to be affected by the new restrictions include those from Israel, Taiwan, Singapore, and Malaysia.

Any exemption would be a relief for the industry, as compliance with export restrictions presents a complex challenge. Many impacted companies are significant contributors to their respective economies, and China is their major market.

“On one hand, they have to remain loyal to the US government, but at the same time, they take a revenue hit by not exporting to China,” said Neil Shah, partner and co-founder at Counterpoint Research. “On the other hand, many semiconductor companies, from equipment manufacturers to fab operators to chipmakers, used to derive 25-45% of their revenue from China, given the country’s sheer scale and ambitions.”

ASML, the world’s leading supplier of semiconductor manufacturing equipment, had its former CEO reportedly say that he had attempted to prevent the tightening of export restrictions.

Impact on supply chain

The exemption for ASML and Tokyo Electron would allow Chinese manufacturers to access critical lithography and etching equipment, maintaining their semiconductor production capabilities.

Analysts point out that this could lead to increased global competition and spur innovation among the exempted countries, benefiting the semiconductor ecosystem in the US and its allies.

“US tech companies may benefit from a more stable supply chain, as the continued supply of advanced equipment to Chinese manufacturers could prevent disruptions that might arise from a complete embargo,” said Rani Ratna, senior research manager at IDC. “This is an important strategy for the US to maintain a competitive edge in advanced technology development, especially in AI and Supercomputing applications, where semiconductor performance is critical. Winning the AI and AGI race is more important than ever, and US companies aim to lead this race, with this strategy providing short-term benefits.”

The move is also expected to benefit the companies financially. ASML shares jumped following news of the possible exemption.

“The positive impact of this exemption would be significant for the earnings of the respective companies, and even more so for China,” Shah said. “Including China back in the market would allow these companies to benefit from increased scale, meaning they wouldn’t need to raise their prices to maintain scalability.”

Reasons for caution

However, analysts caution that the exact details of the rule are still in draft form and may change before official publication. More importantly, given the geopolitical situation, the possibility of additional restrictions later cannot be dismissed.

“The US government may still impose additional limitations using the Foreign Direct Product Rule (FDPR), potentially restricting the sale of certain advanced tools to China,” said Charlie Dai, VP and principal analyst at Forrester. “On one hand, this will further hinder China’s pace of innovation, causing collateral damage to the global chipset supply chain and eventually affecting customers worldwide. On the other hand, China will likely accelerate its investment in chipset fabrication to achieve technology self-reliance.”

In response to US sanctions, China has launched a massive state-backed semiconductor fund valued at $47 billion (344 billion yuan) to strengthen its chip industry. Chinese tech giant Huawei has become a key player in advancing local chip production and development.

Though the unemployment rate for tech workers remains near historic lows, there’s been a shift in the rate at which firms are hiring — and what they’re seeking in new prospects.

Coupled with a large number of layoffs last year at tech giants, the adoption of artificial intelligence (AI) has exploded, shifting what companies seek from more traditional roles to skills involving data, analytics, and machine learning.

Even as overall US hiring has slowed in recent months, IT will remain strong for the third quarter of 2024, according to the latest ManpowerGroup Employment Outlook Survey. The ManpowerGroup data, gathered from more than 6,000 employers across the US during April, showed that hiring outlooks are down 4% from Q2 and off 5% compared to the same period last year. The decrease indicates that US economic uncertainty continues to affect hiring. 

   

“In real time, we’re seeing a steady-as-they-go job market where demand remains strong, but it is softening in some sectors,” said Becky Frankiewicz, ManpowerGroup’s president of North America Region. “While tech hiring isn’t as robust as it used to be, software developers and IT generalists are the most in-demand roles in the US today.

To address skills gaps and remain competitive, employers need a dual approach, Frankiewicz said — attracting and retaining new workers as well as reskilling their existing workforce to transition to growth roles.

In a recent IDC Research survey, two-thirds of than 800 North American IT leaders said they’re experiencing a lack of skills that has resulted in missed revenue growth objectives, quality problems, and lower customer satisfaction.

The situation is not expected to get any better. IDC predicts that by 2026, more than 90% of organizations worldwide will feel the IT skills crisis, amounting to some $5.5 trillion in losses caused by product delays, impaired competitiveness, and loss of business.

Moving away from a ‘candidate-driven’ market

Jennifer Schielke, CEO of IT staffing and recruiting firm Summit Group Solutions, said the IT industry is shifting from a candidate-driven market to one where multiple factors are at play.   On one hand, “major players” such as like Microsoft, Google, Amazon, Meta, T-Mobile, and Expedia, have announced significant layoffs due to over-hiring during the pandemic. On the other, small-to-medium businesses (SMSs) are finally getting a shot at closing skills gaps.

That can prove advantageous for tech workers who might otherwise be locked into a corporate pay scale and roles that typically do not change quickly. “Working for [large] companies that offer salaries or compensation packages higher than the average small or mid-sized business limits your options,” Schielke said. “You end up confined to the circle of giants to maintain the desired salary range.”

Additionally, job candidates’ demands often don’t align with traditional large employer expectations. For example, enterprises tend to be less flexible, especially regarding fully remote work, “which is in high demand, but not always feasible for employers to provide,” Schielke said.

Both data and studies have have shown organizations — including the US federal government — are dropping the traditional four-year college degree from job postings, opting instead for technical hard and soft skills or specific personality traits.

By eliminating unnecessary and outdated degree requirements, employers open themselves up to a larger talent pool of would-be hires with skills learned through on-the-job training, boot camps, and certificate programs. “This creates greater diversity and engenders a more creative culture, leading to improved problem solving and idea generation, as well as facilitating skills and knowledge sharing,” said Job van der Voort, CEO of Remote, a global HR and payroll services company.

For example, tech bootcamp graduates, including coding bootcamps, report quickly finding full-time jobs, a quick return on their educational investment, higher salaries, and better STEM career opportunities.

Fiona Mark, a principal analyst at Forrester Research, said while she has seen organizations move away from requiring college degrees, there’s on-going interest in certifications, particularly in cloud and security areas. AI and data skills — data science, analytics, data management — are all showing growth in demand, she said, as are cloud and infrastructure skills needed to support AI environments.

Developer demand is down from its highs of 2020-2021, but organizations still need developers to support digital initiatives and enhanced customer experience, according to Mark. “What has shifted in the marketplace is not just the skillset, but experience in using that skillset. Years of experience is often being used as a proxy for skill proficiency, and the demand for workers with less experience is down from 40% of tech roles in 2021 to around a quarter of tech roles in 2023,” she said.

That’s creating a challenge in the tech labor market, as less experienced or early career workers struggle to enter the workforce, and it reduces the future pipeline for f experienced workers.

As part of the hiring process, an organization is more likely now to offer candidates real-life cases or projects to work on as a demonstration of a candidate’s ability.

What soft skills companies want

While soft skills are high on the list of what organizations want today, being able to actually perform the job requires hard skills. SHL, a talent acquisition and management platform, recently identified the top 10 soft skills employers seek. Specifically they want a worker who:

• Considers strategic vision
• Thinks broadly
• Motivates and empowers others
• Monitors markets and competitors
• Considers financial impact
• Drives Improvement
• Applies functional expertise
• Gains agreement
• Demonstrates empathy
• Learns quickly

A MarketPulse survey by payroll and HR firm ADP found something similar for companies (regardless of size) that value soft skills over traditional, industry-specific traits for potential hires. For surveyed companies, the highest ranked skills/traits prioritized in new hires included a strong work ethic, problem-Solving skills, and being detail oriented.

While soft skills are important, communicating them to a prospective employer can present a conundrum. Tina Wang, division vice president of human resources at ADP, said there are a few ways for job seekers to bring attention to their behavioral skills. It goes beyond just listing “strong work ethic” or “problem solving” on a resume, “though it’s good to add it there too,” she said.

Job seekers can incorporate behavior skills in a track record of job experiences. “For example, what was an example of ‘ability to work on a team’ at your previous job? Did you manage or actively participate in a long-term project with multiple internal teams and bring together various ideas from these teams into one cohesive strategy,” Wang said.

Soft skills during an interview, hard skills on the resume

An interview with a prospective employer is also a good time to introduce behavioral skills, but time is limited and job-seekers won’t likely be able to share all their demonstrated skills and experience. 

“Preparation will go a long way, so think through your talking points and what is important to share,” Wang said. “Think about a few applicable, real work experiences where you demonstrated these skills and sketch out how and when to bring them during the interview process.”

References can also be an excellent way to highlight behavioral skills. Intangibles such as a strong work ethic or attention to detail might be something former managers, team members or peers identify. “They likely have perfect examples when you demonstrated these skills that have become in such demand, and you might never have realized your skills were on full display in that instance,” Wang added.

While soft skills are in higher demand, hard skills — especially those learned on the job or through certification programs — are still in play.

In today’s dynamic job market, job seekers aim to stand out. With that in mind, MyPerfectResume  performed an analysis of 25,000 resumes created on its site and found the most frequently used skills posted by job seekers. The top five soft skills were time management; customer service; critical thinking; active listening; and attention to detail.

Meanwhile, SHL identified the top five hard skills as: project management; Microsoft Excel; Python; SQL; and Javascript.

Familiarity with how artificial intelligence (AI) platforms work and the ability to customize large language models (LLMs) through skills such as prompt engineering are also at the top of employee skills lists employers want. Data from research firm IDC indicates that 32% of business and IT leaders now expect advancing AI constructs such as genAI to save time and improve productivity. For example, genAI tools support greater access to diverse knowledge resources by enabling employees to access them using natural language queries.

“GenAI and skills are increasingly tightly related: Organizations spanning all industries and geographies face a widening shortage of all IT tech skills, regardless of those skills relating to security, cloud, IT service management, or AI itself,” IDC said in a recent report. “GenAI tools used in conjunction with or inside of tech training platforms can and do accelerate training.”

Far from eliminating jobs like other watershed moments in technology, AI is expected to create many more jobs that it eliminates.

Google parent Alphabet’s $2 billion investment in AI firm Anthropic has caught the eye of the UK’s antitrust regulator.

On Tuesday, the UK’s Competition and Markets Authority (CMA) opened an inquiry into whether Alphabet’s partnership with Anthropic created a “relevant merger situation” that threatened competition within the fast-growing market for cloud-delivered AI products and services.

Invitation to comment

The CMA is inviting industry comments before a deadline of Tuesday, August 13, in advance of the launch of its formal investigation. The outcome of the inquiry will decide whether or not the regulator orders remedial actions or otherwise intervenes in the market.

The prospective probe is part of more general concerns about competition in the generative AI industry.

Partnerships between other hyperscalers and AI startups have also attracted concerns, including the business relationships between Microsoft and OpenAI as well as links between Amazon Web Services and Anthropic.

Open relationship

Google told Computerworld that Anthropic is free to partner with other cloud technology providers and hyperscalers, effectively arguing that competitive concerns were misplaced.

“Google is committed to building the most open and innovative AI ecosystem in the world,” the tech giant said in a statement. “Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”

In a statement, Anthropic told Computerworld it intends to “cooperate with the CMA and provide them with the complete picture about Google’s investment and our commercial collaboration.

“We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” the company said. “Anthropic’s independence is a core attribute, integral both to our public benefit mission and to serving our customers wherever and however they prefer to access Claude.”

Smaller players in the cloud computing market argue that powerful partnerships threaten the development of competition in the AI marketplace.

‘Virtual monopoly’

Josh Mesout, chief innovation officer of UK-based cloud computing firm Civo, told Computerworld, “As an industry we should be cautious over powerful partnerships as they pose a threat to the entire ecosystem by suffocating competition and innovation.”

He added, “We cannot surrender AI to a virtual monopoly before it has really started.”

Maintaining a diverse and competitive landscape in artificial intelligence is important not least because of the diverse and far-reaching applications of AI technologies across multiple industry sectors.

“Over-dependence on a handful of major firms could stifle innovation, limit consumer choice, and potentially lead to a monopoly that favors Big Tech,” Mesout warned.

“To keep the market fair and open, regulators should be eyeing these types of partnerships warily,” he said. “Otherwise, we risk AI following the path of cloud, where hyperscalers run unchecked and leave a broken, locked-in, and stifled market in their wake.”

To get a sense of what a smarter Siri in iOS 18.1 might look like once it appears, Open AI just introduced a new voice mode in its app, albeit in limited alpha, meaning not every user will get ahold of the new tech.

Delayed for a month in response to quality concerns, this is a test of the company’s Advanced Voice Mode on ChatGPT; it’s available to iPhone users who subscribe to the $20 per month ChatGPT Plus service using its GPT-4o model. 

The company warns that it might make mistakes and says access and rate limits are subject to change. It isn’t expected to be universally available across all users until the end of the year, and should be available to Mac, iPhone, and iPad users once it appears. Subscribers accepted to the alpha group will get an alert in the app and an email inviting them to take part in the test. 

“We’ll continue to add more people on a rolling basis and plan for everyone on Plus to have access in the fall,” OpenAI said.

What does Advanced Voice Mode do? 

Effectively, it’s a more powerful chatbot that delivers more natural, real-time conversations with a degree of contextual awareness, which means it can understand and respond to emotion and non-verbal cues. It is also capable of processing prompts more swiftly, which significantly reduces the latency within conversations, and lets you interrupt it to get it to change what it says at any time.

OpenAI first demonstrated the new mode in April, when it showed how the tool can recognize different languages simultaneously and translate them in real time. During that demo, employees were able to interrupt ChatGPT, get it to tell stories in different ways, and more. One thing the bot can no longer do is sound like Scarlet Johansson — it now supports only four preset voices in order to prevent it being used for impersonation. OpenAI has also put filters in place to block requests to generate music or other copyrighted audio, reflecting legal challenges raised against song-generating AI firms such as Suno.

Video and screen sharing capabilities are not yet available.

How it works

If you are a ChatGPT Plus subscriber running the latest version of the app, and are accepted to the test, you can access the bot from within the app by tapping the Voice icon at the bottom of the screen. You can then switch between the new Advanced mode and the existing Standard mode (better for longer sessions) using an interface at the top of the screen. Privacy concerns mean many Apple users might prefer to access these features via Apple Intelligence.

What about privacy?

Apple Intelligence puts additional safeguards in place to protect people’s privacy. As Wired points out, ChatGPT’s user agreement at present appears to want to use your voice and images for training purposes. In a remarkably quotable line, AI consultant Angus Allan calls it a “data hoover on steroids. Their privacy policy explicitly states they collect all user input and reserve the right to train their models on this,” he said.

This is less a problem when used with Apple Intelligence, as ChatGPT requests are anonymized and data from those sessions is not used to train ChatGPT models, according to Apple. If that proves true, many Apple users will eventually gravitate to accessing ChatGPT via their Apple AI as the safest way to use it.

All eyes now will turn to Google, which is expected to introduce similar features within Google Gemini AI soon — features that might also end up being integrated inside Apple Intelligence. The battle of the bots is heating up.

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