Tech Unemployment Crept Up to 2.3 Percent in August

The unemployment rate for tech occupations crept up to 2.3 percent in August, according to a new analysis of data from the U.S. Bureau of Labor Statistics (BLS).

That’s a notable uptick from July, when the tech unemployment rate stood at 1.7 percent. Tech companies added 25,500 net new workers last month, while companies throughout the broader economy added roughly 21,000 technologists.

“Stability in tech hiring continues to be an over-arching theme this year,” Tim Herbert, chief research officer at CompTIA, wrote in a statement accompanying the data. “Despite all the economic noise and pockets of layoffs, aggregate tech hiring remains consistently positive.”

Employers also remain hungry for remote workers, with postings for remote tech jobs up 56 percent year-over-year (and up 281 percent over 2019, before the pandemic began). Various tech sectors enjoyed significant growth, including IT services and custom software (expanded by 14,400 workers), computer and electronics manufacturing (up 4,500 workers), and data processing, hosting and related services (up by 3,200 workers).

Yet again, the BLS paints a more optimistic picture of the hiring landscape than the headlines would suggest. Over the past few months, a number of tech giants have announced hiring freezes or layoffs, including Oracle and Snap. Many of these larger companies spent quite a bit on personnel and infrastructure over the past decade; now, faced with a possible recession and the need to maintain spending on crucial projects, their executives are making the decision to slow hiring or cut headcount.

Smaller startups in highly specialized industries such as fintech have also cut workers. Despite all that scary news, however, it’s clear that hundreds of companies throughout the broader economy still need technologists with a variety of skills, from building websites to ensuring the security of the tech stack, to keep things running. With the right skills and experience, you can still find a job that fits your needs.

One Response to “Tech Unemployment Crept Up to 2.3 Percent in August”

  1. Jake_Leone

    To succeed in U.S. tech you just have to be of the right nationality, with an ability to indenture yourself during a long drawn out Green Card wait. Or are a foreign student, that comes with a 15% discount (thanks to the Federal government OPT program).
    Just change your nationality, it’s easy, ask Eric Schmidt.
    Tech unemployment is going to rise because many tech companies are headed by sand baggers.
    Facebook and Twitter are filled with content monitoring staff and engineers. They never needed them. But tech is having a Pythagorean moment over ethics. And that will continue for a while. Until the bean counters take over and start relying on Section 230.
    Literally, Twitter engineers only work 4hrs/wk. When pressed by Elon to put in a delete feature, Twitter said it was impossible. When shown the user poll requesting the feature, it was implemented in 2 weeks time. Twitter had 10 years to implement a delete feature and did not until pressed, sandbaggers cause.
    The reason, Twitter is obsessed with content monitoring, because it requires hiring more workers,therefore more sandbaggers and their sandbagging managers.
    Literally, twitter could fire 90% its workforce, as the avg. Twitter worker only works 4hrs a week. Twitter could fire half the remainder, because content monitoring isn’t needed.
    Just doing that, and Twitter would earn 700 million a year, instead of lose 200 million a year.
    Facebook has never had an issue with finding qualified local STEM/IT workers. Facebook admitted to Federal Investigators,that it finds 30x more qualified STEM/IT workers than it can hire.
    Facebook is looking for foreign workers that can become tied to the company during the long Green Card wait. DOJ vs Facebook U.S. Justice Dept. filing.
    We need to act fast to prevent huge tech unemployment, if we don’t we will turn off an entire generation from tech and become solely reliant on foreign companies providing tech products to us and our military.