Since the ‘90s, tech has had a reputation for being prestigious but also volatile. Today, mass layoffs are still popping up in headlines. This raises the question: Is the rewarding career worth the risk? I think so, especially because what most people think of as “tech” is no longer representative of the industry. Here’s why tech jobs—especially IT jobs—are staying strong and what the future looks like for the IT industry.
Take Negative Headlines with a Grain of Salt
For the last few years, media headlines have been blaring bad news about tech industry layoffs. Tech was strong when the COVID pandemic hit, and everything moved online. However, as companies returned to in-person work and travel resumed, we’re seeing the COVID tech bubble pop. Major companies are putting employees on the chopping block, including Brave, Scale AI, Apple, IBM, Tome Biosciences, and more.
But the headlines need some perspective. Despite the layoffs, tech is still a strong industry, especially compared to other industries. The average unemployment rate across the entire job market was 4.1% as of June 2024; however, those rates were much lower for tech positions. For example, the unemployment rate for systems managers in Q2 2024 was 1.2%. For database administrators and architects, it was 2.2%.
“Many of the layoffs that appear to be focused on tech workers often also include workers who have little to do with tech (e.g., assistants, marketing managers, etc.),” said Dr. James Stanger, chief technology evangelist at CompTIA. This means that statistics about layoffs from the tech industry can be misleading, as a portion of the layoffs were for positions that weren’t even technical.
Tech Isn’t Just An Industry—It’s Everywhere
Tech is a broad term. When people think of the tech industry, they often picture companies based in large cities like New York or San Francisco. However, many mid-sized cities are flying under the radar as they quickly become tech hubs.
“Plus, ‘big tech’ companies don’t employ the majority of tech workers these days; businesses from various sectors (e.g., finance, manufacturing, healthcare, government) that don’t get attention from media outlets and from apparent thought leaders tend not to appear on the radar,” said Dr. Stanger.
When someone talks about working in tech, most people picture big-name companies like Google, YouTube, or Meta. The reality, though, is most of the “tech industry” is disseminated across other industries. Nearly every company—big or small, regardless of what kind of business it is—has some form of IT department. Working in tech can mean working in a tech role at a manufacturing company, a hospital, a consumer-packaged goods shipper, or any other business in any sector.
IT Has Proven to Be Resilient Over and Over Again
The economy naturally has cycles of growth and decline. As the labor market fluctuates, though, the IT industry has proved to be particularly strong. During the 2008 recession, the IT industry experienced a net loss of 200,000 jobs from 2008-2009, according to the Bureau of Labor Statistics. For comparison, the finance industry lost over a million jobs. Fast forward through the recession. As the economy recovered from 2010-2016, the IT industry grew quickly, and ended up with a net increase of 450,000 jobs (+225%). Comparatively, the finance industry didn’t add enough jobs to make up for the mass layoffs, with a net decrease of 200,000 jobs (-20%).
Many other areas of tech are still experiencing slowed growth as people return to in-person work and the 2023 tech bubble slows, but IT is showing resilience during this downturn, too. While layoffs happen at big-name software companies, the IT job market is recovering quickly. Unemployment among IT positions fell to a new low of 2.8% in May 2024, down from 3% in the previous month and 3.5% in February. Recessions are a normal, if unpleasant, part of the economy, and IT has weathered all storms many times before as a reliable industry.
The IT Industry is Booming
The IT industry isn’t just resilient—it’s actively growing. According to Forbes, a projected 377,500 computer and IT positions will open each year from 2022 to 2032. TechTarget named IT manager the most in-demand tech job for 2024.
These opportunities are waiting to be snatched up. Companies are actively looking for candidates with IT skills. The industry has shown the need for tech positions is constant, even through economic shifts. If you’re a student or you’re simply looking for a change in career, IT is still a great choice for a rewarding, stable, and resilient career.
Tony Galati is an entrepreneur, teacher, and business leader who is revolutionizing vocational education with the founding and growth of MyComputerCareer, a career college for aspiring and seasoned Information Technology professionals.
