IT unemployment fell to 3.2% in July, down half a percentage point from the previous month but still higher than any month in 2023, according to a CompTIA review of U.S. Bureau of Labor Statistics data published Aug. 9.
Tech unemployment bucked the national trend, which saw average unemployment rise to 4.3% across the economy.
IT occupations fell again in July as employers across the economy shed 14,000 tech positions, though active job postings increased slightly. Tech sector employment also declined by more than 9,000 positions.
Experts forecasted a surge in tech talent demand this year, driven by businesses restarting once-delayed modernization projects and adoption of emerging technologies.
However, the first half of the year yielded mixed results, as tech unemployment rebounded to pandemic-era levels.
“Although disappointing, the slowdown in hiring is about in line with expectations,” said Tim Herbert, chief research officer at CompTIA, in a news release. “Employers continue to weigh a range of factors in shorter-term tech hiring while eyeing longer-term growth strategies.”
With more businesses moving from experimentation to wider adoption of generative AI, the technology’s rise is beginning to influence talent strategies. Reskilling employees and shifting work processes to incorporate automation are two key initiatives, according to Deloitte.
Despite job market fluctuations, ongoing tech talent shortages in specific areas stall enterprise modernization aspirations.
IDC projects the skills gap in key areas, including cloud architecture and IT operations, will cost organizations $5.5 trillion by 2026. The losses are attributed to the challenge of remaining competitive and product delays.