Although recent massive layoffs in the tech industry appear to be concerning, it seems to have crossed the peak of uncertainty. Companies look to trim costs and strengthen their IT branches, but tech specialists remain in high demand. Today there are nearly 400,000 tech job vacancies, as another peak of hire is expected during the spring season. It sounds like it is safe to pursue an IT career, but let’s look into the real numbers.
What was the reason for tech layoffs in 2022?
In 2020, most U.S. tech companies sought incredible growth as services went through a rapid digitalization process during the COVID-19 pandemic. Among these trends were a shift to remote working, an expansion of online sales, and a demand for cloud solutions to store and process data. With this drastic infrastructure turn, companies had to hire with the speed of light and, at times, double their tech departments.
A fast-paced talent hunt in 2020-2021 led to being less selective in hiring, and now tech giants are paying the price. Two years ago, businesses experiencing a sales boom could invest in low-qualified workers and hire people for entry-level positions to train them as they work. All this changed in 2022. Amazon has announced the reduction of its workforce by 18,000 people globally. Twitter was halved as Elon Musk acquired the service. Microsoft, Meta, and Google confirmed to cut off between 10,000 and 12,000 workers. But it does not mean that the companies do not need IT specialists at all. In fact, it means quite the opposite.
Will this affect tech in general?
According to a Deloitte U.S. 2023 report, in 2023, tech companies will dedicate their efforts to leveraging growth opportunities. This includes being more selective about costs and being willing to hire real talent.
Even the “High Tech” players are starting to show tendencies to reorganize instead of shrinking. In 2023, after firing the preceding top management from Twitter, Elon Musk announced the start of a recruiting round of software engineers and sales managers.
We’ve collected reliable numbers to help you make your own assumptions.
- The Dice Tech Job Report, issued in November 2022, claims 375,000 tech jobs in the U.S. to remain unfilled.
- Job postings for software development engineers (+139.5%) and backend engineers (+121.5%) have more than doubled compared to 2021, Dice says.
- The peak in job postings in 2022 was seen in March, with an expected slight reduction in December and a tendency to increase.
- Healthcare, aerospace and defense, finance, and consulting are the top industries for tech hiring.
- Tech is one of the industries that offer the most flexibility, with companies focusing on hybrid and remote work. According to the Stackoverflow 2022 Developer Survey, only 14.58% of respondents work on-site, while the proportion between hybrid and remote work forms is near to equal.
What to expect from tech in 2023?
The most sought-for areas will still be software engineering, data analytics, machine learning, and cybersecurity. If you’re looking for a domain that’s only going to grow in the following years, you might want to look into these fields:
AI and neural networks
Many will rely on data scientists and machine learning specialists as more industries involve AI in their products and services. Big Tech companies like Microsoft and Google are placing bets on AI and neural networks (Microsoft recently announced the update of the Edge browser empowered with ChatGPT). Non-tech areas will also call for the development of AI solutions, for instance, healthcare, hospitality, and transportation.
As consumer-faced products go through rapid digitalization, cybersecurity becomes more evident. Companies move their datasets to cloud platforms and are willing to pay to keep their data and infrastructure safe. Cybersecurity specialists will be in high demand in 2023.
Web3 and blockchain technologies
Blockchain has changed how people send, exchange, and invest money, sign contracts, and verify ownership of digital assets. Smart contracts and crypto wallets are expected to disrupt the internet and welcome a Web3 environment of decentralization and anonymity. Check which stack is used for blockchain projects to be at the forefront of that progress.
Mobile app development
It's difficult to picture a world without cell phones. And there should be engineers to adapt existing software to mobile operating systems. Mobile app development is growing annually, with the gaming sector prevailing over non-gaming applications. Being a mobile app developer is both exciting and well-paid.
Learn more about tech market trends for 2023 in the latest video by TripleTen’s Career Coach Christina Guida.
If you’re looking for an in-demand profession with a competitive payroll, flexibility, and innovative tasks to solve, join one of TripleTen’s bootcamps to become a tech specialist and land a great job after only 6-9 months of training.