The technology staffing industry is projected to see 5-7% growth in Technology positions in 2023, despite the economic headwinds of record-high levels of inflation, declining consumer and business confidence, and the expectation of a recession.
Mark Roberts, CEO of TechServe Alliance, said the biggest challenge facing the technology industry is not a lack of demand but, rather, an insufficient supply of qualified professionals. Despite layoffs from high-profile technology companies, businesses in many industries are still actively looking to fill tech positions.
The employment market is strong, with an overall unemployment rate of 3.6%. Unemployment in the technology and engineering fields currently stands at 2.3% and 1.4% respectively; economists consider 4% as full employment.
Despite recovering from the pandemic-induced downturn, technology employment has remained flat due to a supply problem, not a demand issue. There are currently 800,000 open jobs in IT, and most candidates on the market have multiple job offers.
Technology industry typically outperforms the economy at large. If there is a recession, there may be a softening in IT employment, but it will likely be followed by a sharp increase in demand after the pullback. Due to strong demand and a limited supply of talent, solid growth in technology is expected through 2023.