Analyzing 2024 Tech Job Market
Curious how the evolving tech landscape impacts your career trajectory?
This post will analyze hiring trends and layoff situations, helping you develop a clear action plan for your career or job search by the end. Let's get started.
The tech industry thrives on future potential, which is mirrored in stock valuations. However, rising interest rates make that future growth less valuable, as seen in early 2022.
Funding Freeze: With soaring interest rates, borrowing money became more expensive. This forced tech companies to cut back, resulting in slower hiring and, in some cases, layoffs.
Domino Effect: The tech sector was stunned when Elon Musk's acquisition of Twitter led to massive staff cuts. Shortly after, Meta, the first of the FAANG giants (Facebook, Amazon, Apple, Netflix, Google), experienced significant layoffs, triggering a wave of job cuts throughout the industry, including at Google.
Despite their seeming invincibility, the tech giants are facing a period of uncertainty. While another major growth phase is possible, they could also become slow-growth giants, reflecting past industry cycles.
What does this mean for you as a tech worker? Prepare for both scenarios. Tech companies often go on hiring sprees when they discover new goldmines or feel threatened by emerging trends, even if it means layoffs in less profitable areas.
The Key to Survival? Strategic Positioning: Develop the most in-demand skills and focus on high-growth sectors within the industry. This won't completely protect you from layoffs, but it will greatly improve your chances of a swift recovery if you are affected.
The past two years have seen a major transformation in the tech job market, prompting many to ask: what exactly has changed? Here are the key developments that occurred between 2022 and 2024.
Layoffs peaked in January 2023 with trueup reporting over 108,000 tech workers let go, while open jobs in tech dropped by 2/3rds, while new startup hires dropped 50% in 2023.
The tech industry, once known for its constant churn, is experiencing a period of flux. While overall employment levels haven't plummeted, the dynamics have undoubtedly shifted (2022-2024).
A Culture of Caution: The fact that many employees hired in 2022 left within a year (a 43% increase from the previous year) has created a sense of unease among the workforce. This fear of instability may cause tech professionals to hesitate before seeking new opportunities, even if they're unhappy in their current positions.
Prioritizing the Core: Engineering Takes Center Stage: Our analysis indicates that during recent downsizing, non-engineering startup roles were the first to be cut. This makes sense, as engineering talent is essential for product development and maintenance, particularly in advanced "deep tech" sectors.
Based on the LinkedIn Workforce Confidence Index survey, the industries poised to see the most employee turnover in 2024 are:
Retail: Leading the pack at 54% of employees reporting they plan to look for a new job.
Technology, Information & Media: 47% of employees are planning a job search, possibly due to lower than average pay raises (55% received a raise in 2023 compared to the US average of 59%).
Popular Roles in the Booming IT Job Market (2024)
The IT job market is a powerhouse, offering a plethora of exciting and well-paying career paths. Here's a breakdown of some of the most sought-after roles, based on industry trends:
High Demand, High Reward:
Software Developers & Engineers: The backbone of the tech industry, responsible for designing, building, and testing software applications. (High Employment, High Wages)
Cloud Architects & Engineers: Experts in designing, developing, and managing cloud-based infrastructure and solutions. (High Demand, High Wages)
Data Scientists & Analysts: Masters of data analysis, responsible for extracting insights and knowledge from vast datasets. (High Demand, High Wages)
Cybersecurity Analysts & Specialists: Defenders of the digital world, protecting systems and data from cyber threats. (High Demand, High Wages)
Network Architects & Administrators: The architects and engineers keeping computer networks running smoothly and securely. (High Employment, Good Wages)
Other Important Roles:
IT Project Managers: Orchestrators of IT projects, ensuring they are delivered on time, within budget, and meet project goals. (Good Employment, Good Wages)
Database Administrators: Guardians of data, responsible for managing and maintaining databases. (Good Employment, Good Wages)
Systems Administrators: The IT troubleshooters, keeping computer systems operational and resolving technical issues. (Good Employment, Good Wages)
Help Desk Analysts: The frontline of IT support, assisting users with technical problems. (Good Employment, Moderate Wages)
Rising Stars in the IT Job Market (2024)
The IT job market is constantly evolving, with new trends shaping the landscape. Based on the information provided, here are two key trends to watch:
Trend #1: Cloud Computing Takes Center Stage
Surge in Cloud Adoption: Businesses are increasingly relying on cloud-based solutions for storage, application hosting, security, and various other functionalities. This trend is fueled by the internet's growing capabilities and the cost-effectiveness of cloud services.
Cloud Specialists in High Demand: As cloud adoption grows, the need for cloud architects, engineers, and specialists to design, develop, and manage these solutions rises.
Actionable Insights:
If you're an IT professional, consider upskilling in cloud computing to stay relevant and competitive.
For companies, assess your cloud adoption strategy and identify areas where cloud specialists can add value.
Trend #2: The Cybersecurity Imperative
Evolving Threats: As businesses become more reliant on the internet, the risk of cyberattacks escalates. This necessitates robust cybersecurity measures to protect data and systems.
Increased Demand for Outsourced Security: Managing in-house cybersecurity teams can be expensive. Many organizations are turning to outsourced cybersecurity services for cost-effective solutions.
Actionable Insights:
If you're an IT professional, this might be the time to consider specializing in cybersecurity to meet the growing demand.
Organizations should evaluate their cybersecurity posture and explore the potential benefits of outsourced security services.
High Demand Across Unexpected Industries (2024)
The landscape for AI talent is shifting! While you might expect tech giants to dominate the AI hiring scene, a surprising trend is emerging. Here's a key takeaway for IT recruiters:
Non-Tech Industries Lead the Charge: According to LinkedIn's Talent Insights (as of Nov 2023), non-traditional sectors like non-profit organizations (48%), law (40%), online media (38%), retail (38%), and renewable energy (37%) are experiencing the fastest-growing demand for AI talent.
Why the Shift?
These industries are increasingly recognizing the potential of AI to:
Boost Efficiency: Automate tasks, streamline processes, and optimize operations.
Gain New Insights: Analyze data to uncover valuable customer and market trends.
Enhance Decision-Making: Leverage AI-powered analytics for data-driven decision support.
In-Demand AI Jobs (2024):
Here are some of the most sought-after AI jobs across industries, along with their average salaries (according to Glassdoor):
Machine Learning Engineer: $125,000 - $201,000 per year
Robotics Scientist: $116,000 - $188,000 per year
AI Quality Assurance Manager: $95,000 - $151,000 per year
AI Ethics Officer: $95,000 - $166,000 per year
So Here Are 5 Lessons Tech Employees Should Learn Through All of This:
#1: Embrace the Long Game: Resilience is Key
The tech industry has a history of dramatic cycles. Remember Ethan, who bounced back from a layoff to become a VP at Amazon? This story exemplifies the industry's resilience. Even with AI disrupting the scene, adaptability and a willingness to learn will unlock future opportunities.
Make Smart Career Choices: Focus on companies that offer long-term value, fostering skill development and experiences that benefit your entire career, even if the specific role or business experiences a downturn.
#2: Be AI-Ready, Not Just AI-Focused
AI's influence will permeate most tech roles. Instead of solely chasing AI-specific jobs, cultivate the skills and mindset to collaborate effectively with AI when it integrates with your domain.
A Simple Rule of Thumb: Stay close to either deep tech or the revenue stream.
Technical Professionals:
Deepen your knowledge in AI and other deep tech areas.
Develop the ability to communicate effectively with product and business teams.
#3: Hustle Smart in Your Job Search
The market remains competitive, with open positions significantly reduced (down 66%) and startup hiring halved in 2023. Stand out by being proactive.
Apply strategically: Increase your application volume, tailor your resumes for each position, and leverage your network for referrals.
Invest in preparation: Put in the extra effort to ensure your application materials are polished and highlight your unique value proposition.
#4: Don't Be Blinded by Startup Sizzle
The recent downturn saw many startup employees lose out on equity value. Only 7% of later-stage startups offer significant equity payouts to employees. Be cautious about inflated equity offers and factor in the possibility of future funding rounds impacting valuation.
#5: Beyond the Hype: Choose Wisely
Jumping ship to a startup might seem tempting, but remember, equity can be volatile, and recent layoffs indicate startups are no safer than established tech companies. Assess potential employers holistically, considering growth opportunities, learning potential, and culture fit, not just hype or prestige.
The Future of Jobs: A Balanced View
AI is poised to augment tech workers' productivity, as evidenced by internal AI coding and automation tools being developed by companies like Meta and Google. Recent layoffs weren't primarily driven by AI, but rather its impact will be felt in long-term hiring growth.
AI's Double-Edged Sword:
Growth Accelerator: AI will propel the tech industry's economic and societal impact, generating more jobs and industry expansion.
Efficiency Enhancer: AI will also streamline operations, potentially reducing workforce needs to maintain current output levels.
The net effect will likely be substantial tech industry growth. While some roles (customer support, analytical, QA, and basic coding) may be automated, new roles will emerge to bridge the gap between human and AI capabilities.
Stay adaptable! Your career success is measured in decades, not years.
Sources:
https://www.linkedin.com/pulse/i-spent-8-weeks-researching-2024-tech-job-market-colin-lernell-v2kic/
https://www.linkedin.com/feed/update/urn:li:activity:7151220697476878337/?utm_source=claruswaynewgen.beehiiv.com&utm_medium=newsletter&utm_campaign=we-spent-3-months-researching-the-2024-tech-job-market
Educating and well detailed.