Monday, July 15, 2024

CompTIA analysis reveals tech industry job growth counteracts declines in other tech employment metrics

Analysis of Technology Industry Job Growth and Unemployment Trends in June 2024

The technology industry saw an increase of 7,500 net new jobs in June, marking the largest monthly growth of 2024. However, despite this positive development, the unemployment rate for tech occupations also experienced a surprising uptick.

According to analysis by CompTIA, the nonprofit association for the IT industry and workforce, technology services and software development occupations continued to lead new hiring in the sector. This was seen as a promising sign for the small and medium-size businesses within the industry, which currently employs approximately 5.6 million workers.

On the flip side, there was a loss of 22,000 tech occupations across the economy, contributing to the unexpected increase in the tech unemployment rate to 3.7%. Chief Research Officer at CompTIA, Tim Herbert, attributed this trend to factors such as “AI FOMO,” suggesting that some employers may be adopting a cautious approach to tech hiring.

Despite the increase in job postings for tech positions in June, totaling nearly 200,000, there was a slight decrease from the previous month. Major metro markets like San Francisco and Denver saw healthy gains in the number of job postings, while states like California, Texas, and Virginia had the highest volume of tech job postings.

Interestingly, the report also revealed that a significant percentage of tech job postings in June did not require candidates to have a four-year degree. This was especially true for positions like network support specialists, IT support specialists, and network administrators.

For more information, the “CompTIA Tech Jobs Report” is available on their website. CompTIA, the Computing Technology Industry Association, is a leading advocate for the global IT ecosystem, supporting millions of industry professionals worldwide.

Overall, while the tech industry saw growth in job creation, the increase in tech occupation unemployment serves as a reminder of the complex and evolving nature of the sector.

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