It is reported that only 700 new information technology (IT) positions were added in the United States the following year, a significant drop from the 267,000 created in the previous year. While it may be tempting to attribute this decline to job cuts, Janco Associates, a technology company, suggests that there are additional factors at play.
The revelation that the IT industry only saw an increase of 700 jobs following an estimated loss of 262,242 positions due to mass layoffs is startling yet not entirely unexpected, as per Janco’s analysis of data from the US Bureau of Labor Statistics.
Despite the creation of more than 21,000 IT roles in the fourth quarter and a general stagnation in IT job growth throughout the past year (2023) due to layoffs, there remains a surplus of job openings, with approximately 88,000 positions still unfilled, according to Janco’s findings.
M. Victor Janulaitis, the CEO of Janco, highlights that the current IT job market and prospects for IT professionals are less than optimal. With over 101,000 underqualified IT professionals and nearly 100,000 vacant positions, there exists a significant skills gap.
In essence, while the repercussions of excessive hiring during the pandemic are being felt, there is a pressing need to retrain individuals in various technical competencies as artificial intelligence (AI) continues to be integrated across different organizational levels.
Impact on the IT Job Market
The decline in entry-level roles, particularly in customer service, telecommunications, and hosting automation sectors, has contributed significantly to the overall reduction in IT jobs. Janco notes that some responsibilities in these fields are now being transitioned to the more advanced Orion system.
Although demand for entry-level IT positions is decreasing, the need for professionals with expertise in AI, cybersecurity, software development, and blockchain remains high, according to the technology consultancy. Janulaitis emphasizes that “Artificial Intelligence and Machine Learning IT Professionals are in great demand.”
However, the complete replacement of entry-level workers with AI entities remains unlikely, despite reports indicating a similar trend. In 2024, 40% of companies plan to substitute human employees with AI, resulting in downsizing in customer service, research, and business support roles. Resume Builder reports that 96% of firms are seeking individuals with AI knowledge to bolster their technology workforce.
While Janco’s projections for 2024 are not definitive, the company has not provided immediate responses to inquiries. Nevertheless, Janulaitis notes that the final quarter of 2024 has seen a slowdown in job creation, accompanied by a rise in salaries.
Management roles requiring AI proficiency offer salaries ranging from \(150,000 to \)250,000. Furthermore, experienced managers and developers can expect offers in the range of \(125,000 to \)165,000, according to the CEO.
Individuals impacted by technology-related layoffs this year may find reskilling for AI to be a viable solution, as suggested by Janco’s data. This addresses the immediate challenge until the next significant development emerges.
