IT positions rise again despite tepid job market growth

Dive Brief:

• Technology jobs across the economy rose by 54,000 in July, marking the second consecutive month of growth, according to a CompTIA analysis of U.S. Bureau of Labor Statistics data published Friday. 
• Unemployment increased slightly last month to 2.9%, up from 2.8% during the prior month. The increase tracked the national unemployment trend, which grew to 4.2% from 4.1% in June.
• As tech hires increased across the economy, employer postings for tech positions contracted slightly last month, according to the IT trade group. More than 40% of active postings were added last month.

Dive Insight:

July’s net increase in technology roles contrasts with flagging indicators in the broader U.S. employment market, as employers contend with economic uncertainty and a fluid global trade scenario.

The BLS data published Friday “officially ripped the mask off the market,” said Laura Ullrich, Indeed’s director of economic research for North America, in an email. “The underlying weakness that had been apparent just under the surface came into full view after major downward revisions showed the past few months of seemingly steady jobs growth to be basically nonexistent.”

Tech sector employment also contracted last month by more than 10,000 positions. Several technology providers have trimmed headcount in recent months, though these shifts are unlikely to be reflected in the most recent report, since data reporting on unemployment lags. 

Microsoft trimmed around 15,000 positions in two layoffs rounds in May and July. Intel’s layoffs surpassed 5,000 last month, with plans to cut nearly 25,000 positions by the end of the year. AWS also cut hundreds of positions, Reuters reported in July.

“Today’s report shows we’re a long way from the job-switcher’s paradise enjoyed in the post-pandemic surge,” Mischa Fisher, head of product analytics and economist at Udemy, said in an email. “This is not a labor market where one can afford a career misstep.”