Dive Brief:
- U.S. employers added 160,000 core technology workers in June, marking the 19th consecutive month of growth for tech worker employment, according to a CompTIA review of U.S. Bureau of Labor Statistics data released Friday.
- Unemployment among tech occupations was 1.8% last month, above the all-time low rate of 1.3% recorded in May 2019. The national unemployment rate remained at 3.6% in June, unchanged from May 2022.
- Unabated by recession fears, job postings to fill new tech roles exceeded 500,000 last month, up 62% year-over-year according to CompTIA.
Dive Insight:
Economic analysts expected slower job growth in June with high inflation and recession fears. But in IT, where hiring has remained difficult, demand is up — and talent is scarce.
The recent unemployment data highlights a labor market that continues to defy recessionary fears, according to Bhushan Sethi, joint global people and organization leader at PwC.
"This was surprising given the well-publicized hiring freezes and potential layoffs, especially in the tech sectors," said Sethi in an email.
The talent struggle is a global one. One-fifth of organizations globally are struggling to meet their tech hiring needs, according to a report from IT talent search and managed services firm Experis. Executives started the year concerned over their ability to attract talent, another study shows.
"Continue to focus on your top performers," said Sethi. "They are being recruited constantly."
The tech hiring limitations are even more glaring in the ongoing wave of resignations. Another U.S. Bureau of Labor Statistics report released earlier this week showed there were 4.3 million resignations in May, nearing the record volume set in November.
"The Great Resignation is still very much happening," said Sethi.
It's up to technology executives to guarantee their companies can respond to the goals set at the start of the year. Part of the response is reviewing the hiring process.
"There are still many employers seeking unobtainable 'unicorn' candidates or falling short on basic hiring best practices," said Tim Herbert, chief research officer at CompTIA.
Candidates will pick one job over another based on prospective commitment to supporting career development, or if they spot a red flag with a hiring manager or teammates during the process.
"It sounds obvious but the companies that truly embrace hiring best practices and employee experience will be more successful over the longer-term," said Herbert.
CIOs have options to manage overwhelming talent needs amid a small skills pool.
For example, analyzing current open positions to determine if demand can be managed by deprioritizing certain tech projects or shifting investments to the next quarter, Sethi said.
Some analysts suggest this reprioritization is also helpful to contend with the effects of inflation, as budgets laid out for the year fail to meet expectations.
