Tech Job Study Shows Mixed Results

Published On: July 20, 2020Categories: Buzz, Uncategorized

While overall tech industry employment showed a slight decline of 5,600 jobs, three of five sectors experienced positive gains, according to analysis of the U.S. Bureau of Labor Statistics by CompTIA, a suburban Chicago-based trade association.

Tech manufacturing led the way with a net increase of 7,300 jobs, covering both technical and non-technical positions.

“The latest employment data for tech was generally positive, with continuing signs of momentum,” said Tim Herbert, executive vice president for research and market intelligence at CompTIA. “While uncertainty is still a major concern, the forward-looking employer job posting figures suggest hiring will accelerate in areas such as software development, IT support, cloud infrastructure, cybersecurity, and certain emerging tech fields.”

In addition to tech manufacturing, the other industry sectors that experienced jobs gains for the month include data processing, hosting and related services (+ 5,600) and the other information services category, which includes search engines and portals (+ 2,200).

The IT services and custom software development segment lagged, with an estimated loss of 20,400 positions. The telecommunications sector also continued its downward slide, with a net loss of 300 jobs.

“Because the IT services and custom software development segment is dominated by small firms, they tend to be more sensitive to disruptions in customer spending,” said Herbert. “As the broad small business market recovers, we expect hiring will resume among IT services and customer software development firms.” 

The top industries for IT job postings in June included professional, scientific and technical services, finance and insurance, manufacturing, and information.

California, Texas, Colorado, New York, and Pennsylvania were the states with the highest month-over-month increase in IT job postings. At the metro level, New York, San Francisco, Los Angeles, Atlanta, and Boston had the largest increases from May to June.

The unemployment rate for IT occupations stood at 4.3% for June, compared to the national rate of 11.1%. 

Channel Impact®
While the results are truly mixed, the industry may be positioned for increased positive movement.

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