According to a recent analysis by tech consultancy Janco Associates, the IT industry in the US added only 700 jobs in 2023, compared to 267,000 jobs the previous year. While the numbers are concerning, they are not entirely surprising, given the significant layoffs that have occurred in the industry recently. However, there is a notable discrepancy between the low job growth and the substantial number of vacant positions, with approximately 88,000 IT roles remaining unfilled.
Janco CEO M Victor Janulaitis highlighted the challenges in the IT job market, stating, “Currently, there are almost 100,000 unfilled jobs with over 101,000 unemployed IT professionals – a skills mismatch.” This shortage of skilled professionals is due to a combination of factors, including the corrections from overhiring during the pandemic and the increasing integration of artificial intelligence (AI) in various industries.
The IT job market has experienced a significant blow, primarily affecting entry-level positions in customer service telecommunications and hosting automation. Many of these roles have been replaced by AI technologies, as companies strive for automation efficiency. However, even with a decrease in entry-level positions, there is still a demand for IT professionals with expertise in AI, security, development, and blockchain.
According to Resume Builder, 40 percent of companies plan to replace human employees with AI in 2024, leading to job cuts in customer support, research, and office support. Consequently, there is a growing need for workers with AI skills to support the automation initiatives of companies. In fact, 96 percent of companies are actively searching for employees with AI competencies.
Although Janco’s data does not provide a clear outlook for 2024, it is evident that the final quarter of 2023 experienced job growth despite the overall poor performance for the year. Moreover, salaries in the industry are rising, particularly for management positions with AI skills, which can range from $150,000 to $250,000 annually. Experienced managers and developers are also receiving offers in the range of $125,000 to $165,000 per year.
Aspiring IT professionals faced with recent job losses should consider retraining for AI roles, as this area continues to drive job growth and presents promising opportunities for skilled individuals. However, it is important to acknowledge that the tech industry is constantly evolving, and future advancements may require further adaptation to new technologies.