Report: Tech Unemployment Hits All-Time Low
With overall unemployment sitting at 3.6 percent, the strategy of finding and attracting talent keeps getting more difficult for HR leaders. But for the technology sector, things are really getting tricky for recruiters and employers in the talent hunt.
An analysis of the Bureau of Labor Statistics’ “Employment Situation” report by CompTIA, a technology industry association, found that the unemployment rate for technology occupations in the U.S. has fallen 1.3 percent in May, a 20-year low.
According to CompTIA, the tech sector’s drop is lowest dating back to January 2000, which also happens to be the earliest available detailed occupation-level data from the BLS. A previous low of 1.4 percent occurred in March 2018 and April 2007.
Another tight talent indicator is that the tech sector’s employment rate for May remained positive, but with very modest growth compared to recent months as an estimated 5,800 new hires were added to the tech sector workforce.
“The data confirms what employers have been saying for months and even years – the demand for tech talent has reached historic levels,” says Tim Herbert, executive vice president for research and market intelligence at CompTIA.
Herbert added that there is a very real prospect of tech worker shortages that could easily affect industry growth.
“Firms seeking to expand into new areas such as the Internet of Things, robotic process automation or artificial intelligence may be inhibited by a lack of workers with these advanced skills, not to mention shortages in the complementary areas of technology infrastructure and cybersecurity,” Herber explains.
When it came to job growth, technology services, custom software development and computer systems design expanded by an estimated 8,400 new hires, while gains in other employment categories didn’t fare as well. For example, computer and electronic products manufacturing added 1,600 new jobs, including 1,200 in computer and peripheral equipment manufacturing. Hiring in data processing, hosting and related services remained stable.
On the downside, tech sector employment fell off in two other categories: search portals lost an estimated 2,600 positions and telecommunications employment declined by some 1,700 jobs.