Tech Talent Landscape Stabilizes with a Constrained Worker Supply

Despite continuing uncertainty, the December 2024 BLS jobs report found that the US economy added 227,000 jobs in November. Meanwhile, the tech sector has faced turbulence over the past two years, with major layoffs totaling roughly 400,000, yet the demand for tech talent remains strong overall.

The latest annual IT salary guide by Motion Recruitment reveals that IT hiring is stabilizing after four years of volatility, with strong wages and rising demand across industries. In addition to its own data, the guide cites several studies and reports indicating healthy demand.

70% of tech workers seeking new work received multiple job offers.

This finding from Deloitte reveals a strong level of competition for IT talent. While wages are no longer growing as rapidly as in 2022, they remain steady.

66% of North American IT organizations suffered skills gaps.

This International Data Corporation figure shows that an insufficient IT workforce can cause revenue growth to miss targets, product and service quality to suffer, and customer satisfaction to decline.

48% of organizations are adding staff due to AI demands.

By comparison, only 19% of employers plan to lay off or downsize, according to InformationWeek. The rise of new technology is creating a net gain of jobs in many fields, prompting employers to adapt quickly.

60% of tech workers were hired in non-tech industries.

For the first time since global commercial real estate firm CBRE began tracking labor market conditions, non-tech industries have hired the majority of tech workers. Traditional tech hubs are giving way to businesses across industries and locations.

Our View

Reconsider industry experience as a qualification.

Overemphasizing industry experience can unnecessarily limit the pool of potential candidates. Instead, expand your talent supply by balancing job requirements and offering employer-provided training and mentoring to help candidates learn industry specifics.

Employer brand matters.

An employer’s reputation among job seekers often mirrors the norms and expectations of its industry. Today, companies must attract talent that previously pursued high-risk, high-growth opportunities at tech startups. A careful look at your strategy and targeted talent, with the help of an employer brand expert, can ensure your value proposition aligns with and attracts the tech talent you seek.

Do not underestimate job titles and compensation visibility.

Prevailing salaries or bill rates for certain tech fields can change quickly, and so can the language around job titles and skills. Sevenstep’s Sevayo® Insights talent data integration platform tracks titles, definitions, skills and costs, enabling our teams to normalize client language and expectations against market demands.

Sevenstep Case Study

A digital innovation firm focused on healthcare doubles hard-to-fill technology hires across its portfolio of companies.

Learn How