Bureau of Labor Statistics labor market revisions contribute to conflicting signals in latest tech employment data, CompTIA analysis finds

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Feb 03, 2023, 16:00 ET

Employer tech job postings increase, tech unemployment rate falls to 1.5%

DOWNERS GROVE, Ill., Feb. 3, 2023 /PRNewswire/ -- The latest data on tech employment presents a mixed picture, with a decline in current employment and an increase in employer job postings for potential future hiring, according to an analysis by CompTIA, the nonprofit association for the information technology (IT) industry and workforce.

Technology sector companies shed 1,600 positions in January, CompTIA's analysis of today's U.S. Bureau of Labor Statistics #JobsReport reveals. The BLS significantly revised its November data, describing it as a "major revision reflecting content and coding changes." ¹ The change materially affects the sub-sector of tech companies providing search and platform services, while the revisions were a net positive for sub-sectors such as IT services and data.

Technology Industry Sector Employment	Initial November 2022 BLS release	Revised November 2022 BLS release	Change due to revision
PC, Semiconductor, Components Manufacturing	1,095,400	1,099,900	+4,500
Telecommunications	659,500	661,200	+1,700
Data processing, Hosting, Cloud Services	434,300	479,700	+45,400
Other Info Services, Search Portals, Platforms	438,300	199,800	-238,500
IT Services, Custom Software and System Design	2,454,600	2,489,600	+35,000
Total	5,082,100	4,930,200	-151,900

Technology occupations throughout the economy declined by 32,000 for the month, representing a fractional reduction of -0.5% of the total. The tech unemployment rate fell to 1.5% in January, an indication many laid off workers were re-hired and absorbed back into the labor market. The tech unemployment rate is also an indication that many of the layoffs occurring at the tech sector level are non-technical workers, such as sales, marketing or related business support positions.

"Despite the unusual backward revision by the BLS and the routine fluctuations in monthly labor market data, much of the big picture tech employment picture remains the same," said Tim Herbert, chief research officer, CompTIA. "Undoubtedly some companies over-hired and are now scaling back. The low tech unemployment rate and steady hiring activity by employers confirms the long-term demand for tech talent across many sectors of the economy."

Job postings for future tech hiring reversed last month's dip and increased by 22,408 to 268,898, according to CompTIA analysis of employer job posting data.² Several major metropolitan markets saw a notable jump in tech job postings from December to January, including Atlanta (+2,941), New York City (+2,935), Dallas (+1,788), Houston (+1,156), Austin (+1,086), Tampa (+1,049) and Washington (+1,009).

Among industries, the highest volumes of job postings for tech positions were reported in the professional, scientific and technical services (40,712), finance and insurance (30,576) and manufacturing (24,269) sectors.

The "CompTIA Tech Jobs Report" is available at https://www.comptia.org/content/tech-jobs-report. For more analysis and perspective visit the CompTIA Tech Job Report video series at https://www.youtube.com/playlist?list=PLuqIJd7KnBU_nZd2oXEwa0I5X7Vt124eM.

About CompTIA

The Computing Technology Industry Association (CompTIA) is a leading voice and advocate for the $5 trillion global information technology ecosystem; and the estimated 75 million industry and tech professionals who design, implement, manage, and safeguard the technology that powers the world's economy. Through education, training, certifications, advocacy, philanthropy, and market research, CompTIA is the hub for unlocking the potential of the tech industry and its workforce. https://www.comptia.org/

Media Contact

Steven Ostrowski
CompTIA
[email protected]
630.678.8468

¹ Monthly occupation level data from the U.S. Bureau of Labor Statistics tends to experience higher levels of variance and volatility. Labor market data from the BLS and employer job posting data from Lightcast may be subject to backward revisions.

² Analysis of employer job posting data from Lightcast

SOURCE CompTIA