The demand is high, the number of workers are limited, and companies are paying $120 an hour to hire and retain workers in an ever-changing industry.
Three years ago when the country went on a hiring frenzy, the tech sector added more than 600,000 thousand workers. Now, three years after the pandemic, the same industry that had a record 9.16 million jobs in 2022, began wide-spread layoffs and downsizing in certain areas. Just recently, big name companies like Meta Platforms, Inc., cut 10,000 jobs and eliminated 5,000 open roles; Amazon.com Inc., eliminated 9,000 workers; and Indeed eliminated 2,200. All total, over 300,000 jobs have been lost in the tech industry since the layoffs began. Still, the tech industry has been able to maintain a 2.2% unemployment rate, which is lower than the 3.6% US average.
What is even more shocking is that despite the cuts, contract workers are still in demand in certain specialty areas such as artificial intelligence (AI), engineering and software development. Workers are hired to maintain and update complex technology systems. Companies see these areas as critical and a high priority. The demand is high, the number of workers are limited, and companies are paying $120 an hour to hire and retain workers in an ever-changing industry.
One caveat, however, is that not everyone is willing to pay this wage. While some workers are making $120 an hour, some companies now are only paying $45 an hour when before, they were paying $90. Still, the average pay in the tech industry is twice what an average worker in the US typically earns.
The good news is there are no massive cutbacks like there were during the dot-com crash in the 2000’s and even now, the tech industry is up 18% in market value in the S&P 500. Recruiters are still filling jobs, but not at the rate they were in the middle of 2021. While decline is still happening, tech companies are not worried and are certain they will make a comeback in the job market in all areas of the industry.
