Tech Job Postings Plummet: Indeed Survey Shares the Transition

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The number of tech job postings came down 36% compared to the same time last year, reports Indeed.

The technology sector has been a significant driver of economies across the world. From developed to developing countries, for at least a decade now, it has created a massive number of jobs and enabled a rise in GDP. This year, with the pandemic raging shutting down economies, there is a clear insight into how it has affected the tech sector, and consequently, the people who work in it.

As of late July, the number of tech job postings was down 36%Opens a new window compared to the same time last year, as per recent data from job search platform Indeed. This drop started mid-May and has been falling continually. While all jobs have been impacted in this sector, data scientist and IT management positions have been severely affected, with postings at 43% and 45% below last year’s levels. The listings for jobs in artificial intelligence and machine learning are down 29% year-over-year.

The tech sector accounts for around 10% of U.S. economic output, and the reduction in hiring indicates the massive economic recession it is facing. The industry directly and indirectly supported more than 12 million jobs in 2019Opens a new window in the U.S.

The “internet and tech” category is the only big sub-sector within technology, including the roles at social media and e-commerce companies, which is higher than it was at the same time last year. Between late June and late July, internet and tech role postings on the Indeed platform rose 57% to 124,200. This is 102% higher than last year.

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What Does This Drop in Key Roles and Increase in Other Tech Roles Mean?

Strategic roles are transitioning to tactical roles and resulting in the creation of new-age roles.

Shift from strategic to tactical roles

At a broad level, this shift indicates some big changes in the way companies are now operating. Several companies have announced that they will work from home until 2021. Even with the rise in remote hiring, the drop in tech jobs indicates internal changes that companies are contemplating. The affected jobs in tech seem to be those perceived as more strategic and future-focused, as against the tactical/operational roles. This shift in hiring means that talent acquisition teams will need to understand how to upskill their internal IT teams to make them adapt to new roles and enable internal mobility. This could be a better approach than removing existing IT employees and hiring those with knowledge of social media and internet knowhow.

The advent of new-age roles owing to changes in other functions

In the past decade, the focus has been on making IT more strategic and leveraging internal data for decision making. This caused the rise in IT management and data science-based roles, at a time when possibly sales, marketing, HR, and production were not entirely technology-driven. The remote working phenomenon, combined with a shift in the way these functions need to now operate to remain relevant and sustainable, has also influenced the kind of new-age IT roles that are being hired for. For example, marketing is now spending on digital and social media channels to connect with clients or potential clients. This means the support they need is from a social/digital marketing perspective and effective use of the internet. HR teams are now conducting remote recruiting and onboarding. IT teams and employees that can support the demands of increased tech use across these departments will thrive.

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Are organizations equipped with the right tools, knowledge, and learning systems to help their IT workforce transition to new roles with the right knowledge and skills? That is yet to be seen.