Tumultuous Times in Tech? 2023 Job Outlook for Tech Workers
The past two years have been a roller coaster for the tech industry, with the pandemic driving a boom in demand for technology products and services. But has that boom turned into a bust? In 2022, the industry saw a wave of layoffs that affected more than 150,000 tech jobs across public and private tech companies. And as we settle into 2023, the trend appears to be continuing, with over 148,000 tech jobs already eliminated this year.
So what does this mean for tech workers that are currently employed, or looking for work?
What’s Prompting Mass Layoffs?
First, it’s important to understand the reasons behind the layoffs. While some high-profile companies have attributed the job cuts to over-hiring during the pandemic-driven tech boom, others say they’re a direct result of the uncertain economic times (read: high inflation and recession fears). This has created a level of uncertainty for tech workers, as even those who are currently employed may not feel secure in their jobs.
State of the IT Job Market in 2023
Fortunately, there are some positive signs for tech workers. Despite the layoffs, the tech job market is still growing, though at a slightly slower pace than in 2022. According to a recent report, the IT job market is expected to add 174,000 jobs in 2023, down slightly from the 186,300 jobs added in 2022.
The U.S. Bureau of Labor Statistics projects that jobs for software developers, QA analysts and testers will grow 25% from 2021 to 2031. And while the tech unemployment rate crept up to 2.2% in February (up from 1.5% in January), it’s still lower than the overall national unemployment rate of 3.6%.
Another positive trend is that many laid-off tech workers are finding new jobs very quickly. Nearly 80% of laid-off software engineers are finding new jobs within three months. And despite the layoffs, there are still plenty of open IT job listings, with tech jobs dominating Indeed’s Best Jobs of 2023 list.
Top Tech Careers in 2023
According to Pluralsight, the top 5 tech careers this year are:
- Artificial intelligence and machine learning
- Cloud specialization
- Solutions architecture
- Data science & analysis
From the proliferation of cutting-edge AI applications to the growing adoption of knowledge graphs, industries well beyond big tech are leaning into digital transformation. And many tech workers are exploring their options in diverse sectors that are desperate for high-skilled IT professionals.
Branching Out from Big Tech
Recent tech layoffs have inspired many disillusioned IT workers to look for jobs in industries that may be more stable than big tech has proven to be over the past year. And like the dot-com bust of 2001, companies in a wide variety of sectors are vying to scoop up displaced big tech workers. Nearly every industry these days has a need for skilled tech workers, and those who are willing to branch out will find the most opportunity.
Are you currently exploring tech job opportunities? Consider joining Softensity’s global team of tech professionals, where you can learn from your peers and chart your own career path.
Subject A: Job outlook for tech workers in tumultuous 2023?
Subject B: What do mass layoffs mean for tech workers in 2023?
There have been a lot of shake-ups in the IT industry this year, with sweeping big tech layoffs that bring to mind the dot-com bubble burst of 2001. Just three months into the year, and already nearly 150,000 tech jobs have been lost.
What does it all mean for tech workers who are currently employed, or looking for a new job?
Fortunately, it’s not all bad news for IT professionals. Read up on the 2023 job outlook for tech workers to learn more about the current state of employment in the industry.
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