The IT job market has become a hot topic of conversation. With technology evolving at lightning speed and the job market shifting in response, it's more important than ever to understand the current landscape. Is the IT job market strong, or is it on the verge of a crisis?
In Episode 86 of Ticket Volume, host Matt Beran dives deep into this issue with two industry experts: David Lowe and Stephanie Lundberg. David Lowe, a seasoned IT leader with experience in Digital Transformation, and Stephanie Lundberg, founder of Support Human LLC and a thought leader in the support and knowledge functions space, brought their unique perspectives to the table. Together, they explored the trends, challenges, and strategies that define today’s IT job market.
This episode is packed with valuable insights that can help you navigate the complexities of finding a job, standing out in a crowded field, and understanding what’s really happening in the IT sector.
And remember to join the Ticket Volume community to stay tuned with new podcast episodes and more exciting IT news and knowledge. So, let’s dive in! Here are the highlights of Episode 86.
Is the IT job market strong or in crisis?
The IT job market has been a rollercoaster in recent years. After a period of rapid growth and abundant opportunities, the landscape has shifted dramatically.
The industry has seen waves of layoffs, fluctuating demand, and the rise of new challenges, such as the impact of artificial intelligence and remote work. Stephanie captured this complexity.
This reflects a mixed reality where hope and uncertainty coexist, making it crucial for job seekers to stay informed and adaptable. But what does this mean for job seekers and IT professionals?
Are we in a crisis, or is the market still holding strong? Well, it's not an easy answer. But there are some ways to navigate the tech job market. One of them is to identify the bad trends from the good trends.
Bad trends in the IT job market
While there are some positive aspects, the IT job market is also facing several troubling trends. Through the conversation, Stephanie and David mentioned a few bad trends we should all be aware of. Here are some of the bad trends that our experts highlighted:
- Fake job listings: Companies are posting job openings without any intention of filling them, often to appear more successful to investors.
- Job scams: The rise in scams targeting job seekers, leading to exploitation and theft of personal information.
- Predatory companies: Some companies are taking advantage of the oversupply of talent, offering poor working conditions and low pay.
- Dehumanizing recruitment processes: The hiring process has become impersonal and disheartening, with many candidates feeling like just another number.
As Stephanie pointed out, there are companies out there listing job descriptions that they have no intention of filling. As she pointed out, the idea is not necessarily to hire but to make it look like they are hiring. She adds: "It’s a trend that’s not only frustrating but also predatory, especially in a market where so many talented people are looking for work”.
Good trends in the IT job market
Despite the challenges, there are still positive trends in the IT job market. Here’s what’s going well, according to our guests:
- Increased hiring activity: After a tough period, there’s been an uptick in hiring over the past few months, with more people finding new jobs or getting promoted.
- Growth in remote work opportunities: Remote work continues to offer flexibility and new opportunities for IT professionals.
- Community support: Stronger online communities are emerging, where job seekers can network, share job leads, and get support from peers.
- Skills development: There’s a growing emphasis on continuous learning, with more professionals pursuing certifications and upskilling to stay competitive.
Tech unemployment rate
Let's bring some hard data to the table. The unemployment rate in the tech sector has fluctuated over the past few years, reflecting the industry's volatility. According to recent reports, the tech unemployment rate remains relatively low compared to other sectors.
Unemployment among IT professions reached 3.7% last June, up from 2.5% in the previous month, according to a CompTIA review of U.S. Bureau of Labor Statistics. The rate is the highest it’s been since August 2020, when it reached 4.6%.
However, this unemployment rate doesn’t tell the whole story. Many tech workers are finding themselves in a precarious position, with contract work becoming more common and full-time, stable positions harder to come by. The shift towards gig economy roles in the tech industry is something job seekers need to be aware of as they navigate their career paths.
What is causing the job market crisis?
Several factors are contributing to the current crisis in the IT job market. One of the most significant is the wave of layoffs that has hit the tech industry. These layoffs have been driven by a variety of reasons, including economic downturns, the rise of artificial intelligence, and shifts in company strategies. AI, in particular, has automated many roles, leading to job losses and a shift in the types of skills that are in demand.
Another major factor is the remote work revolution, which has changed the way companies operate and hire. While remote work has opened up new opportunities, it has also led to a more competitive job market, with companies now able to hire from a global talent pool.
The IT bubble is another issue, where tech companies have been overvalued, and many products were never going to be profitable. Founders who lack experience or a clear vision have also contributed to this bubble, leading to instability in the market. Real economic factors, such as the pandemic, have further exacerbated these issues, pushing companies to cut costs by reducing their workforce.
Additionally, the push for a return to centralized management and in-office work has created tension between employers and employees, with some companies using layoffs as a tool to force workers back into the office.
When will the layoffs stop?
Predicting when the layoffs will end is complicated. Stephanie Lundberg explained it this way: "It’s difficult to say for sure when the layoffs will stop. There are genuine economic factors at play, but some companies are preemptively laying off people to make their financials look better.".
The economic factors driving layoffs are complex, and while some companies are cutting jobs to streamline operations, others are doing so preemptively to make their financials look better. It’s clear that the situation is fluid, and job seekers need to stay informed and adaptable as the market continues to evolve.
Where should people be searching for jobs?
Finding the right place to search for jobs can be challenging in today’s market. Stephanie and David both emphasized the importance of using multiple platforms and strategies to maximize your chances.
For David, traditional job boards like LinkedIn, Indeed, and Glassdoor are still valuable resources. These platforms allow you to search for roles that match your skills and experience, and they often provide insights into company culture through reviews and ratings.
However, job seekers should also consider joining specialized communities. Stephanie mentioned platforms like Support Driven and Elevate CX offer job boards and networking opportunities specifically for IT and support professionals. These communities can help you connect with like-minded individuals and discover job opportunities that may not be listed on traditional job boards.
Finally, it’s essential to leverage your network. Many jobs are filled through personal connections rather than public listings. By staying active in professional communities and reaching out to your contacts, you can uncover hidden job opportunities and get referrals that can give you a leg up in the hiring process.
Just a note here: If you want to learn more about career development in IT, you can download one of our latest eBooks, "Unlocking Career Progression in IT.". There you will find compelling industry insights to help you foster a successful career journey in tech.
How to spot a good job from a bad one?
Spotting a good job from a bad one can be tricky, especially when job descriptions are often vague or misleading. According to Stephanie , one of the key red flags to look out for is the phrase "fast-paced environment". While it might sound like a positive, it can often signal a lack of organization and unclear job expectations.
Other red flags include job listings that emphasize "high energy" or other personality traits, which can indicate a toxic work culture. Job seekers should also be wary of overly broad job descriptions that don’t clearly define the role or responsibilities.
To protect yourself, it’s important to do your research on the company. Check reviews, ask questions during the interview process, and trust your instincts. If something feels off, it’s worth considering whether the job is the right fit for you.
Ways to deal with layoffs: Strategies you can apply
Layoffs are a reality in today’s job market, but there are strategies you can apply to navigate this challenging situation. First, it’s important to give yourself time to process the layoff. Losing your job can be a blow to your self-esteem and sense of security, so take time to grieve and reflect on what you want from your next role.
Next, focus on your network. As David suggested, don’t wait until you need a job to start networking. Reach out to your contacts, join professional communities, and let people know you’re looking for new opportunities. Networking can open doors to job opportunities that you might not find through traditional job boards.
Lastly, consider upskilling or reskilling. The job market is constantly evolving, and staying competitive means keeping your skills up to date. Whether it’s learning a new programming language, earning a certification, or taking on freelance work to gain experience, continuous learning can help you stay relevant and attractive to employers.
Finding a job: How to stand out?
In a crowded job market, standing out is crucial. David offers a practical approach: make personal connections. It’s not just about sending out resumes; it’s about building relationships with the people who can help you get your foot in the door.
Start by researching the companies you’re interested in and reaching out to key people, such as recruiters or hiring managers. LinkedIn is a powerful tool for this, allowing you to connect with professionals who can offer insights or even referrals. Personalizing your outreach and showing genuine interest in the company can make a significant difference.
Another key strategy is to be proactive during the interview process. Ask thoughtful questions that show you understand the company’s needs and are eager to contribute. Demonstrating your passion and aligning your skills with the company’s goals will help you stand out from other candidates.
If you want some extra tips to write your IT resume, Robert Fedoruk came onto the pod and shared his top insight here!
Conclusion
The IT job market is undoubtedly challenging, but with the right strategies and mindset, you can navigate it successfully. From understanding the current trends to making personal connections and staying resilient in the face of layoffs, there are steps you can take to improve your chances of landing your next role.
Remember, the job market is constantly evolving, and staying informed and adaptable is key. Whether you’re actively job hunting or simply keeping an eye on the market, these insights from David Lowe and Stephanie Lundberg can provide the guidance you need to stay ahead. By leveraging the right resources, building strong networks, and continuously developing your skills, you can not only survive in this competitive landscape but thrive.
So, as you continue your journey in the IT sector, keep these tips in mind, stay proactive, and don't hesitate to seek out support when you need it. The right opportunity is out there—you just need to be prepared to seize it when it comes.
You can find the full episode on Apple Podcasts, Spotify, YouTube, or your favorite podcast platform.
Frequently Asked Questions (FAQs)
1. What are the biggest challenges in the current IT job market?
The biggest challenges include layoffs, the rise of AI, remote work competition, and the increase in job scams and predatory companies.
2. How can I spot a bad job listing?
Look out for vague descriptions, phrases like "fast-paced environment," and unrealistic expectations. Always research the company and trust your instincts.
3. Where should I search for IT jobs?
Use traditional job boards like LinkedIn and Glassdoor, but also explore specialized communities like Support Driven and Elevate CX for IT-specific roles.
4. What strategies can I use to stand out in the IT job market?
Build personal connections, network proactively, and tailor your outreach to show genuine interest in the company. Be prepared to demonstrate your skills during interviews.
