Tuesday, May 9, 2023

What's Going On With Tech Layoffs?


There was an enormous hiring spree in tech during the unprecedented level of demand for tech during the fall of 2020. While tech layoffs are growing in the media's headlines, the tech unemployment rate is dropping. So what's going on? 

According to the Layoffs.fyi, in April 2023, there were an estimated 17,926 tech sector layoffs. This includes all workers on the payrolls of tech companies; most of those laid off during this post-covid adjustment period did not hold IT positions.  

Meanwhile, in North America, the demand-to-supply ratio for cybersecurity and data scientist talent is 0.4, according to Gartner. You read that correctly; less than one candidate is available for every cybersecurity and data scientist job posting. According to Gartner, this tech talent shortage will affect supply through 2026. 

In 2023, enterprise spending on software and IT services will increase by 9.3% and 5.5%, respectively. Worldwide, that's $4.5 trillion being pumped into technology, up 2.4% from 2022, according to Gartner. 

According to the BLS, "Employment in professional and business services continued to trend up in April (+43,000). Over the month, professional, scientific, and technical services added 45,000 jobs, as employment in computer systems design and related services increased by 13,000."

Long story short: IT and cybersecurity talent demands are as hungry and competitive as ever. Tech salaries are still rising, but so are expectations, so stay caught up. Twit.tv is always here to keep you at the top of your game with the best tech news, analysis, and exclusive offers from our partners.