Tech Job Market Surges in January: Hiring and Job Postings Increase Across Sectors

The tech job market experienced a significant surge in January, with employers across various sectors and regions adding tech workers and increasing job listings for future hiring. According to CompTIA, the leading global provider of vendor-neutral information technology (IT) training and certification products, tech sector employment increased by a net 6,787 positions in January, while tech occupations across all sectors of the economy grew by an estimated 228,000 for the month.

The tech unemployment rate increased to 2.9% in January, compared to the national rate of 4%. Despite the slight increase in unemployment, tech hiring activity remained solid across key categories, with robust hiring of personnel in IT services and software development occupations (+13,700) offsetting reductions in telecommunication jobs (-7,900).

New employer job listings for tech positions increased by 51,756 in January, to more than 220,000. The total of active job postings for the month was over 476,000. CompTIA's analysis shows that 49 states plus the District of Columbia saw increases in tech job postings last month, with California (+9,834), Texas (+4,256), Illinois (+3,476), Virginia (+2,101), New York (+2,083), and Florida (+2,059) recording the largest month-over-month increases. Metropolitan areas that experienced big jumps in tech job postings included San Jose, San Francisco, New York City, Chicago, and Dallas.

Employer hiring spanned every sector of the economy, with a broad mix of company types pursuing tech talent. On a month-over-month percent change basis, the positions with some of the highest gains in job posting volumes include UI/UX designers (+54%), data scientists (+52%), data analysts (+47%), tech support specialists (+38%), and systems analysts (+38%).

Active postings for positions in artificial intelligence (AI) or jobs requiring AI skills totaled nearly 40,000 in January, an increase of about 1,500 from December. The San Jose, San Francisco, Seattle, New York City, Boston, and Washington, D.C. markets had the most AI job postings for the month.

Across all tech occupations, 45% of January job postings did not specify a four-year degree requirement for applicants. Some occupation categories had higher percentages, including network support specialists (83%), tech support specialists (71%), computer programmers (57%), web and digital interface designers (53%), and network systems administrators (51%).

The rise in job postings that do not require a four-year degree is significant for the tech industry, as it allows for a more diverse and inclusive workforce, helps address the persistent skills gap, and can help reduce wage inflation. This trend is driven by the rapid evolution of technology and the increasing demand for workers with up-to-date, relevant skills.

In conclusion, the tech job market experienced a surge in January, with employers across various sectors and regions adding tech workers and increasing job listings for future hiring. The growth in AI-related job postings, as well as the rise in job postings that do not require a four-year degree, highlights the increasing demand for tech professionals with specialized skills and the industry's commitment to fostering a more diverse and inclusive workforce.