Tech Layoffs? The Hidden Job Boom in the Tech Industry

In the wake of post-pandemic reality and the ever-looming specter of inflation, the global economic landscape has been a tumultuous one. Nearly every industry felt the impact of inflation, and the tech field was no exception. Consumer price hikes (World Economic Forum) and high labor costs (BLS) became commonplace as tech organizations worked to preserve capital and stay afloat.

Another trend, widespread layoffs, are perhaps the most distressing byproduct of pandemic-related inflation (Business Report). Tech and non-tech staff are finding their roles slashed as companies restructure, oreorganize, and seek to regain some degree of scalability and flexibility that originally made them successful.

Here’s the good news: despite the challenges posed by the pandemic and economic instability, the tech sector has demonstrated an impressive ability to weather the storm (Promineo Tech). While layoffs have indeed occurred in certain corners of the tech world, they tell only part of the story. In fact, what's often overlooked is the simultaneous surge in hiring within the tech industry. This apparent dichotomy underscores a hidden job boom that is reshaping the employment landscape.

One way to step into one of these emerging IT careers is ongoing IT education. For example, QuickStart's IT bootcamps and certification programs in fields like cybersecurity, cloud engineering, data analytics and visualization, and software development can quickly provide you with the tech skills today’s employers are looking for.

Job Growth Statistics and Trends

The tech industry's job growth has been consistently positive, despite fluctuations from inflation and a global pandemic. The industry itself has consistently outpaced other industries in terms of job creation and revenue growth over the past decade. 

This year alone, high-tech services are forecasted to add more than one million jobs to the U.S. workforce (BLS). That new job pool will represent 12% of all U.S. careers. Data scientists, statisticians, and logisticians — all tech-related data analysis careers — are positioned to be the three-highest growing data career fields through 2031 (BLS).

This anticipated growth rate is even more impressive across some of the most coveted IT positions. For example, overall employment in computer and information technology positions is expected to create 377,500 jobs each year (BLS). These positions will sustain a growth rate much higher than the national average for all IT positions. Computer and information research scientists, the highest-earning of those positions, is expected to grow 23% and 4% through 2032 (BLS).

Even the world’s largest companies are rebounding from pandemic layoffs. While recent layoffs slightly flatten that growth rate, big tech companies — Google Amazon, Meta, etc. — still employ 2.16 million people (NY Times). That’s 71% more people than they employed before the pandemic began.

Reasons Behind the Tech Boom

The tech boom of recent years can be attributed to several key factors, most recognizably the accelerated digital transformation spurred by the global COVID-19 pandemic (IMFBlog). As businesses worldwide were forced to adapt to remote work arrangements and shifting consumer behaviors, their reliance on technology became more pronounced than ever before. 

One of the most notable consequences of the pandemic-induced digital transformation has been the increased reliance on technology for remote work, communication, and entertainment. With offices shuttered and social distancing measures in place, organizations turned to collaboration platforms, video conferencing tools, and cloud-based services to facilitate remote work and maintain productivity. 

Similarly, people relied heavily on digital platforms for staying connected with loved ones, accessing entertainment content, and even pursuing remote learning opportunities in cybersecurity, software engineering, and other key IT fields.

Industries—like healthcare, finance, and education—saw particularly steep demands for new technologies. For example, augmented and virtual reality gave clinicians the tools they needed to improve health outcomes (Medical Economics). Generative AI and personalized financing helped unlock faster, more accurate banking decisions (Avenga).

These technologies created new opportunities for productivity across some of the fastest-growing sectors of U.S. business. They also created new opportunities in the U.S. workforce. After all, the integration of new technology doesn’t happen without employees who understand those technologies. Education and upskilling became even more important strategies for tech organizations working to keep pace with modern innovation.

The Stages of Tech Hiring

When it comes to employment in the technology industry, recent layoffs don’t come close to telling the full story. The market for tech careers remains robust, despite large layoffs at some of the highest-grossing players in the sector. The loudest layoffs don’t speak for the industry at large, which has shown consistent growth through the pandemic.

Tech hiring and layoffs typically happen in stages. Here’s how that commonly takes place:

1. Tech companies hire more employees in response to digital skills gaps within their organizations. These employees typically offer critical skills like cybersecurity, programming, or cloud development.
2. Tech companies begin shifting priorities. This can take place for several reasons, including changes in consumer demands, competitor activity, or new technologies hitting the market.
3. Tech companies shift their workforce in response to their market shift. This can mean moving employees to different teams, divisions, or projects.
4. Tech companies lay off a large number of employees who no longer meet their vision for the future. These layoffs have little to nothing to do with an employee’s work performance. Instead, they are simply the result of a tech company that has shifted its priorities.
5. After priorities shift, tech companies hire a large number of new employees with skills that better fit their new future.

After a layoff boom, many tech companies typically undergo a hiring boom. That’s the juncture many tech companies are approaching right now in their growth trajectories (The Guardian).

Opportunities for Job Seekers

In the dynamic landscape of the tech industry, there are abundant opportunities for job seekers across a wide range of roles. Many of these roles offer a competitive salary, strong job growth projection, and opportunities for advancement.

Here are some specific IT roles that are currently in high demand, along with their average salaries and job growth projections (BLS):

• Network specialists: Design, implement, and maintain computer networks to ensure efficient communication and connectivity between devices and systems. Network specialist positions should grow 5% through 2032, and earn an average of $68,050 each year. 
• Cybersecurity analysts: Protect organizations from cyber threats by monitoring networks, detecting security breaches, and implementing measures to safeguard sensitive data and information. Cybersecurity analyst positions should grow 32% through 2032, and earn an estimated $112,000 each year.
• Data scientists: Collect, analyze, and interpret large volumes of information to uncover insights not always visible to the naked eye. These insights inform internal decision-making, product decisions, and executive direction. Data scientist positions should grow 35% through 2032, earning an estimated $103,500 per year.
• Cloud architects: Oversee the implementation of cloud computing solutions, including infrastructure, platforms, and services, to enable scalability, flexibility, and cost-efficiency for businesses. Cloud architect positions should grow 4% through 2032, earning an average of $126,900 per year.
• Software developers: Develop and maintain software applications and systems, utilizing programming languages and frameworks to meet specific user needs and business requirements. Software development positions should grow 25% through 2032, earning an average of $127,260 per year.
• Operations research analysts: use mathematical and analytical techniques to optimize organizational processes. This improves internal team coordination and solves problems in resource allocation, logistics, and overall efficiency. Operations research analyst positions should grow 23% through 2032. They will earn an estimated $85,720 each year.
• Systems administrators: Manage and maintain the operation of computer systems, including servers, networks, and hardware, ensuring optimal performance, security, and reliability for users and organizations. System administrator positions should grow 2% through 2032, and earn an estimated $90,520 each year.

Many of these roles require specialized skills. Fortunately, some of these skills are transferable from one IT role to the next, which can make it easier to transition IT careers based on market demand or your own personal interests. Prioritize skills like problem-solving, communication, and data analysis when choosing your next IT career. These skills are required in virtually every tech career, and many hiring managers prioritize them when choosing between candidates.

The Role of Training and Certification

Training and certification play a crucial role in keeping you relevant, competitive, and proficient in your tech field. As technology continues to advance rapidly and new skills grow in demand, employers increasingly value candidates who possess relevant training and certifications that demonstrate their expertise and commitment to ongoing learning.

Many of the most influential tech companies prioritize hiring candidates with recognized certifications and training credentials. For example, tech giants like Google, Microsoft, Amazon Web Services (AWS), and Cisco Systems often require or prefer candidates to hold specific certifications related to their products and services. These certifications validate your skills and knowledge in areas such as cloud computing, cybersecurity, networking, and software development, making them highly desirable to employers.

As a leading provider of IT certifications, QuickStart is qualified to help you take your tech career to the next level. This might mean completing an IT Technician bootcamp, one that teaches foundational tech skills in computer fundamentals, operating systems, and hardware.

Here are a few other training fields to consider:

• Cybersecurity: Learn about threat detection, vulnerability management, encryption techniques, incident response, and regulatory compliance.
• Cloud engineering: Learn about cloud platforms such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP), including cloud architecture, deployment models, automation, scalability, and security best practices.
• Software development: Learn programming languages such as Java, Python, JavaScript, and C#, as well as software development methodologies, version control systems, debugging techniques, and software design principles.
• Data analytics and visualization: Learn about data manipulation, statistical analysis, machine learning algorithms, data visualization, predictive modeling, and big data technologies.

Programs in these fields empower tech professionals to enhance their skills, expand their career opportunities, and achieve professional goals in the rapidly evolving tech landscape.

WIOA: Workforce Innovation Opportunity Act

A way to upskill and re-enter back into the tech workforce if you are unemployed is with grant-funding. In 2014, the Workforce Innovation Opportunity Act or WIOA was passed to help people access employment-based training, education and support services so that they can fill important jobs in their communities. Grants may cover up to 100% of training costs and are great for job seekers who need help funding their training.

QuickStart partners with WIOA for this purpose. We want to make sure anybody can get the IT training they need so they can get the job they want without having to worry about how they can finance their education, especially after being unemployed.

WIOA Success Story: Alfred Davis - Shih

Alfred Davis-Shih was part of the tech layoffs that happened towards the end of 2022, being let go from Twitter (now X). However, he was able to secure funding through the federal WIOA program and through that application process, he was able to discover QuickStart’s Data Science and Analytics Bootcamp program. 

As he was attending the bootcamp and going through the career services program, Alfred was able to land a job BEFORE finishing the training. This is a testament to the work Alfred put in to not only receive the training necessary, but also applying and executing his training in his job search and interview process. 

“A lot of the projects that I had worked on kind of on one hand taught me [that] all the mistakes I made in previous jobs…prepared me for my next job…A big piece of this was to really help me… one, upskill in areas of data science that I felt like I was lacking so I could find that next job but also kind of pivot a little bit into a different area of what I've been working in. And this bootcamp was appealing to me because it was a really nice mix of data science from a business and presentation perspective as well as more of the technical side of data science, especially with Python programming and all of the fundamental math that goes behind a lot of the more technical pieces of this field. So it was…a perfect combination of what I was looking for.”

Watch Alfred tell his full story in our September 2023 webinar:

Find Your Place in Tech

Despite recent layoff trends, the tech industry continues to present abundant opportunities for anyone seeking a rewarding career. The demand for skilled tech professionals remains strong, with companies across industries relying on technology to drive innovation, efficiency, and growth.

One resource to consider in your journey toward a meaningful IT career is QuickStart. Whether you're interested in cloud computing, cybersecurity, software development, or data science, QuickStart offers a wide range of training programs tailored to industry needs and aligned with current trends and technologies. 

Take the first step towards your future in tech today by exploring training programs with QuickStart. Whether you're looking to upskill, reskill, or embark on a new career path, now is the time to invest in yourself and seize the opportunities available in the thriving tech industry.