By the close of 2024, the tech sector experienced a rise in employment opportunities; however, companies are anticipated to adopt a more cautious approach in their hiring practices in the coming year.
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Tech hiring rose in December, dropping the IT unemployment rate to 2% — its lowest since November 2023, according to an analysis of the latest jobs data published today by the US Bureau of Labor statistics (BLS). The overall national unemployment rate held steady at 4.1%, according to the BLS.
The tech sector added a net 7,000 jobs, bringing the total core tech workforce to nearly 6.5 million, according to CompTIA, a nonprofit association for the IT industry and workforce. The group found that the unemployment rate last month among tech professionals fell a full half a percent from November.
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And as 2025 gets under wa, IT employment and hiring appears to be on a positive track, according to staffing agencies. According to ManpowerGroup, the net employment outlook for Q1 2025 is 2% higher than it was for the same period last year — 37% this year compared to 35% in early 2024.
ManpowerGroup recently published its Q1 2025 report on hiring, which claimed hiring in IT fields will beat all other professions in the US. Still, the firm also predicted employers will pull back on hiring in the months ahead because of “economic uncertainty.”
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"Looking ahead to 2025, we are observing consistent hiring patterns compared to previous years, with employers focusing on retaining their current workforce and anticipating a more cautious approach to new hiring in the upcoming quarter," stated Jonas Prising, chair and CEO of ManpowerGroup.
Research conducted by ManpowerGroup, the online job platform Indeed, and Deloitte Consulting indicates that the recruitment process in the IT sector will progressively focus on identifying candidates with adaptable skills that can respond to evolving market needs.
According to data from CompTIA, the tech sector experienced a reduction of 6,117 jobs in December, affecting various types of workers. The majority of these job losses were concentrated in the manufacturing of PCs, semiconductors, and components.
The technology industry provides jobs for approximately 5.6 million individuals, reflecting a decrease of 1% in percentage terms.
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"According to Prising, employers understand that having a skilled and versatile workforce is crucial for managing change, leading many to focus on recruiting and keeping individuals who possess sought-after flexible skills that can adjust to varying demands."
Ger Doyle, the US country manager for ManpowerGroup, commented on the December BLS jobs report, stating that it marks "a robust conclusion to 2024 and offers an optimistic outlook for the upcoming year. Nonetheless, the labor market could encounter obstacles until inflation is more effectively managed, as this is crucial to avoid slower hiring rates, layoffs, and diminished job growth. Our real-time analysis indicates that job openings have dropped by 8% compared to the previous month, yet have risen by 3% when looking at the same time last year."
According to data from ManpowerGroup, job postings have shown consistent stability since November, increasing by 13% compared to the previous year. This trend highlights a rising demand in sectors such as digital services, healthcare, and convenience retail.
The temporary job market showed promising signs, with job openings hitting their highest numbers since September 2023, and new listings at their highest since March 2022, as reported by Doyle. He noted, “This increase is fueled by a growing demand for IT positions as companies focus on project work aimed at advancing artificial intelligence and machine learning technologies.”
Kye Mitchell, the leader of Experis North America, a tech recruitment branch of ManpowerGroup, reported that there was a notable rise in demand from tech employers in December, especially concerning the "gig economy." Uber experienced an astounding 4,150% increase in job postings, driving this trend, while Outlier Inc., a platform that links experts to promote generative AI, observed a 342% boost in demand.
"Mitchell noted that this trend was particularly noticeable in the temporary job sector, where the need for computer and information research scientists surged by an astonishing 2,000%. As companies prioritized the advancement of artificial intelligence and machine learning, they increasingly turned to temporary staff for support."
In December, the total number of active tech job postings reached 434,415, with 165,189 being newly added, both figures showing a decline from November. CompTIA reported that the most activity was observed in positions related to software development, IT project management, cybersecurity, data science, and tech support.
The leading companies for hiring were Amazon, Accenture, Deloitte, PwC, GovCIO, Robert Half, Lumen Technologies, and Insight Global. According to CompTIA's data, job openings covered various experience levels: 22% demanded 0-3 years of experience, 28% preferred candidates with 4-7 years, and 16% were looking for individuals with over 8 years of experience.
According to CompTIA, it is significant that 45% of job listings in the technology sector did not necessitate a four-year degree. The roles with the highest percentages of positions that allowed for degree flexibility included network support specialists at 85%, tech support specialists at 72%, and computer programmers at 54%.