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 AssociatesAll 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.
CompTIA