The Status of IT Labor market – A study by the Indeed Hiring Lab found that nearly 40% of open positions are not actively being hired for.

A study by the Indeed Hiring Lab found that nearly 40% of open positions are not actively being hired for.

Open positions are not always an accurate indicator of a strong job market. There are a few reasons for this:

• • Companies may post open positions to comply with regulations or to keep their talent pipeline full, even if they are not actively hiring. For example, a company may be required by law to post open positions for a certain period of time after they have been vacated. Or, a company may keep open positions open even if they are not actively hiring in order to attract and retain top talent.
  • Companies may post open positions to gauge interest in a particular role or to test the market for talent. For example, a company may post an open position to see if there is enough interest in the role to justify hiring for it. Or, a company may post an open position to see if there are any qualified candidates available in the market.
  • Companies may post open positions to brand themselves as an employer of choice. For example, a company may post open positions to show that they are growing and expanding. Or, a company may post open positions to attract top talent, even if they are not currently hiring.

Caution in interpreting open positions as a sign of Tech industry health

• • As a result of these factors, it is important to be cautious when interpreting open positions as an indicator of a strong job market. It is also important to consider other factors, such as the number of job seekers, the unemployment rate, and the overall health of the economy.
  • According to a recent report by the Brookings Institution, there are a number of reasons why companies may not be hiring for open positions, even if they are advertised. These reasons include:
  • Companies may be facing budget constraints. The COVID-19 pandemic has had a significant impact on the global economy, and many companies are still recovering from the financial losses they experienced during the pandemic. As a result, these companies may not have the budget to hire new employees.
  • Companies may be waiting for more certainty about the future. The economic outlook is still uncertain, and many companies are hesitant to hire new employees until they have a better understanding of the future economic conditions.
  • Companies may be struggling to find qualified candidates. The talent pool for many in-demand skills is shallow, and companies are having a hard time finding qualified candidates to fill open positions.

As a result of these factors, the number of open positions that are not actively being hired for is significant. In fact, a recent study by the Indeed Hiring Lab found that nearly 40% of open positions are not actively being hired for.

• • This means that job seekers should be careful not to rely solely on open positions as an indicator of the job market. Instead, they should consider a variety of factors, such as the number of job seekers, the unemployment rate, and the overall health of the economy.
  • As a result of these factors, the number of open positions that are not actively being hired for is significant. In fact, a recent study by the Indeed Hiring Lab found that nearly 40% of open positions are not actively being hired for.
  • This means that job seekers should be careful not to rely solely on open positions as an indicator of the job market. Instead, they should consider a variety of factors, such as the number of job seekers, the unemployment rate, and the overall health of the economy.
  • It is difficult to predict with certainty when the job market will see active recruitment with intensity. However, there are a few factors that suggest that the job market may improve in the near future.

Here are some specific industries that are expected to see strong job growth in the near future:

• • Healthcare: The healthcare industry is expected to add 1.9 million new jobs by 2030. This is due to the aging population and the increased demand for healthcare services.
  • Technology: The technology industry is expected to add 937,000 new jobs by 2030. This is due to the continued growth of the technology sector and the need for skilled workers in areas such as software development, cybersecurity, and artificial intelligence.
  • Education and training: The education and training industry is expected to add 1.1 million new jobs by 2030. This is due to the need for teachers, trainers, and other education professionals to meet the demands of the workforce.
  • Job seekers should focus on developing skills in these high-demand industries to increase their chances of finding a job.

Rise in Unemployment Claims

According to data from the U.S. Department of Labor, the number of initial unemployment claims filed by tech workers has been steadily increasing in recent months. In October 2023, the tech industry accounted for 2.1% of all initial unemployment claims, up from 1.8% in September 2023.This increase in unemployment claims is likely due to a number of factors, including:

• • The economic slowdown: The tech industry is not immune to the broader economic slowdown. As businesses tighten their budgets, they are cutting back on hiring and laying off employees.
  • The shift to cloud computing: The rise of cloud computing has led to a decrease in demand for traditional tech workers, such as software developers and network engineers.
  • The increase in automation: Automation is replacing many tech jobs, particularly in areas such as customer service and data entry.

Rise in Credit Card Debt

In addition to the rise in unemployment claims, tech workers are also facing an increase in credit card debt. According to a recent study by the Federal Reserve Bank of New York, credit card debt among tech workers has increased by 10% in the past year.

This increase in credit card debt is likely due to a number of factors, including:

• • The loss of income: Tech workers who have lost their jobs are relying on credit cards to make ends meet.
  • The rising cost of living: The cost of living, particularly in tech hubs such as San Francisco and New York City, has been rising in recent years. This has made it more difficult for tech workers to make ends meet on their salaries.
  • The decline in stock market values: Many tech workers have a large portion of their wealth invested in tech stocks. The recent decline in stock market values has wiped out a significant amount of this wealth, making it more difficult for tech workers to save money and pay down debt.

Implications for the Tech Labor Market

• • The rise in unemployment claims and credit card debt among tech workers suggests that the labor market is facing some challenges. This could lead to a number of negative consequences for the tech industry, including:
  • A decrease in demand for tech talent: As businesses become more cautious about hiring, they may start to reduce their demand for tech talent. This could make it more difficult for tech workers to find jobs.
  • A decrease in wages: If there is a decrease in demand for tech talent, it could lead to a decrease in wages for tech workers. This could make it more difficult for tech workers to make ends meet.
  • A decrease in innovation: The tech industry is known for its innovation. However, if tech workers are struggling financially, they may be less likely to take risks and innovate. This could slow down the pace of innovation in the tech industry.

Need for monitoring the situation in Tech Industry Employment:

• • The tech industry is a critical driver of the U.S. economy. It is important to monitor the situation closely and to take steps to address the challenges facing the tech labor market. Otherwise, the tech industry could face a number of negative consequences, which could have a ripple effect on the broader economy.
  • The decline in stock market values has also contributed to the rise in credit card debt among tech workers. Many tech workers have a large portion of their wealth invested in tech stocks. The recent decline in stock market values has wiped out a significant amount of this wealth, making it more difficult for tech workers to save money and pay down debt.
  • The rise in credit card debt among tech workers is a worrying trend that suggests that the tech industry is facing some challenges. This could lead to a number of negative consequences for the tech industry, including a further decrease in demand for tech talent, additional downward pressure on wages, and a potential slowdown in innovation.However, the rise in credit card debt among tech workers is particularly concerning because tech workers are typically well-educated and have high-paying jobs. This suggests that even tech workers are struggling to make ends meet in today’s economy.
  • It is important to note that the rise in credit card debt among tech workers is not an isolated phenomenon. Credit card debt has been rising for all Americans in recent years. This is due to a number of factors, including the increasing cost of living, stagnant wages, and a decline in personal savings rates.

The impact of AI on high-paying IT jobs is a complex issue.

On the one hand, AI is automating many tasks that were previously performed by humans. This could lead to a decrease in demand for certain IT jobs. On the other hand, AI is also creating new jobs and opportunities. For example, AI is driving the growth of the field of data science It is too early to say what the net impact of AI will be on high-paying IT jobs. However, AI acceleration will cause workers the need to adapt to the changing landscape in order to remain competitive and relevant.

Headwinds and Impact of Layoffs

As of November 14, 2023, a total of 1,106 companies have laid off workers, and more than 249,000 workers in tech lost their jobs since the beginning of the year. This can lead to financial instability, as workers may rely on credit cards to cover expenses while they search for new employment.

• • Credit Card Debt Managing credit card debt can be challenging, but there are tools available to help. For example, Tally is an app that helps simplify the process of paying off credit card debt. It provides users with a loan to pay off their credit card bills, and users are then responsible for paying off the Tally loan.
  • Employment Credit Checks Employment credit checks can also impact tech workers. These checks are common and can constitute an illegitimate barrier to employment4. Among low- and middle-income households carrying credit card debt, 1 in 10 survey respondents who are unemployed have been informed that they would not be hired for a job because of the information in their credit report

Impact of AI on Job Market

• • Artificial Intelligence (AI) is significantly impacting the job market. It’s automating cognitive tasks, which were previously performed by humans. This automation is affecting not only low-skilled workers but also white-collar workers. However, workers who successfully adapt to AI can secure better positions in the market.
  • AI Skills and Job Roles AI skills are among the fastest-growing skills on LinkedIn, with a 190% increase from 2015 to 2017. Tech jobs like software engineers and data analysts, along with technical skills such as cloud computing, mobile application development, software testing, and AI, are on the rise in most industries and across all regions. However, jobs that involve more repetitive tasks, which are highly “automatable,” are declining.

AI and Job Loss

• • AI has led to job losses in several companies. For instance, Dropbox announced it was cutting 500 employees, and an e-commerce startup laid off 90% of its support team due to AI.
  • Goldman Sachs economists have estimated that 300 million full-time jobs across the globe could be automated in some way by the newest wave of AI, with up to a quarter of all jobs being completely done by AI.

Job Market Recovery Prediction

• • The U.S. economy is projected to add almost 4.7 million jobs from 2022 to 2032. However, the job market is expected to slow down in the first half of 2024, but labor market expansion should continue in 2025 and 2026.
  • The gross domestic product (GDP) grew by 3.5% in the third quarter of 2023, which is a positive sign for the economy.

Job Market Recovery Prediction

• • The U.S. economy is projected to add almost 4.7 million jobs from 2022 to 2032. However, the job market is expected to slow down in the first half of 2024, but labor market expansion should continue in 2025 and 2026. The gross domestic product (GDP) grew by 3.5% in the third quarter of 2023, which is a positive sign for the economy.
  • Slower Pace of Recovery as compared to faster pace of AI adoption
  • While AI is transforming the job market and leading to job losses in some areas, it’s also creating new opportunities. The job market is expected to recover and expand in the coming years. However, the pace of recovery may be slower than expected due to the impact of AI and other factors.
  • The Need for AI Trainers Artificial Intelligence (AI) has emerged as a dominant force, reshaping industries and redefining operational use cases1. With the proliferation of AI solutions, there’s an intense emphasis on the correct and ethical sourcing and utilization of data. This introduces the critical role of AI trainers. These specialized professionals are tasked with ensuring AI systems function within ethical boundaries while optimizing their performance.AI trainers hone, refine, and tailor AI systems to make sure they’re not only technically proficient but also ethical, fair, and transparent. They curate and prepare data, configure conversational conditions and responses, structure and refine the NLP/NLU model, and implement feedback loops for iterative training. In a field that’s evolving, AI trainers need to stay updated, continuously learning and integrating new AI technologies and methodologies1.

Turning Point of Economy with the Rise of AI

The rise of Artificial Intelligence (AI) is indeed a turning point in our economy. It’s transforming industries and redefining operational use cases. However, if lowly paid workers do not acquire AI skills, they could face several challenges:

• • Job Insecurity: As AI automates cognitive tasks, jobs involving repetitive tasks are declining1. Workers lacking AI skills may find their job roles becoming obsolete1.
  • Limited Career Progression Without AI : AI skills are among the fastest-growing skills on LinkedIn. Without these skills, workers might find limited opportunities for career advancement
  • Wage Stagnation in lack of AI skills: A report shows that AI boosts productivity and paychecks in the workplace. Workers without AI skills might miss out on these potential wage increases.
  • Increased Skills Gap: The AI skills gap compounds a broader digital skills crisis. Workers not equipped with AI skills could widen this gap, leading to inequality in the workforce. Therefore, it’s crucial for workers, regardless of their current pay scale, to invest in learning AI and other digital skills. This will not only enhance their job security but also open up new career opportunities.

To stay relevant in the market, individuals should consider studying the following areas in AI:

• • AI Programming with Python: This course is offered by Udacity and is a great starting point for understanding the basics of AI and Python programming.
  • AI For Everyone by Andrew Ng: This course is available on Coursera and is designed to provide a broad understanding of AI concepts.
  • AI & Machine Learning Engineering Career Track: Offered by Springboard, this course provides a comprehensive understanding of AI and machine learning
  • Artificial Intelligence for Trading: This Udacity course is ideal for those interested in applying AI in the finance sector.
  • Artificial Intelligence A-Z™: Learn How To Build An AI: Available on Udemy, this course provides a hands-on approach to building AI systems.
  • Introduction to Artificial Intelligence (AI): This Coursera course provides a broad introduction to AI.
  • Artificial Intelligence for Business: This course focuses on the application of AI in business scenarios.
  • Advanced AI: Deep Reinforcement Learning in Python: This course dives deep into the concept of reinforcement learning, a key aspect of AI.
  • AI Engineering Professional Certificate: Offered by Coursera, this certificate program provides a well-rounded AI education.
  • Artificial Intelligence Certification Program by Stanford University: This program offers a comprehensive understanding of AI from one of the leading universities in the field.
  • Harvard’s CS50 Introduction to Artificial Intelligence with Python: Available via edX, this course provides an introduction to AI using Python
  • IBM Applied AI Certification Course: This course, offered by Coursera, provides practical knowledge of applying AI using IBM’s Watson

These courses cover a wide range of AI concepts, from programming and machine learning to business applications and ethical considerations. By gaining a broad understanding of AI, individuals can stay relevant in the rapidly evolving job market.