IT recruitment in US sees a 99% decline: Report

A mere 700 IT jobs were added in the US last year compared to 2,67,000 in 2022

Updated: Jan 11th, 2024

Image: Envato elements

Despite being home to top IT companies like Microsoft, Cisco, and IBM, the year 2023 went through a rough patch by generating 99% fewer jobs in the IT sector in the USA.

A mere 700 IT jobs were added in the US last year compared to 2,67,000 in 2022, revealed a report published on Jan 8 by an online news publication, The Register.

A tech consultancy company’s analysis says that mass layoffs are not the only reason for the decline. 

The decline can be dubbed a result of over-hiring corrections from the pandemic, economic recession, increasing interest rates, and other comprehensive factors.

According to the tech consultancy, entry-level IT demand is shrinking, though demand for those with AI, security, development, and blockchain skills remains desired. 

Whereas in India, over 5.4 million employees were estimated to enter the IT sector in 2023.

Germany, often regarded as one of the tech hubs in Europe, had the average number of active technology-related jobs stood at 59,432  between March and June 2023.

“The massive wave of layoffs has shut down hundreds of thousands of workplaces, turning 2023 into the worst year the tech industry has ever seen, said a data provider firm in a report published in August 2023.

Tech companies have laid off 2,26,000 employees so far this year, almost 40% more than in 2022, the report revealed.

Facing an uncertain global economy, inflation, ongoing supply chain issues, and slowing revenue growth, the tech companies picked up the pace of layoffs in 2023, led by giants like Google, Meta, Microsoft, and Amazon.

According to the report, US tech giants had a massive role in the 2023 wave of layoffs. In fact, statistics show that the US companies made eight out of the ten largest job cuts reported in 2023.

(With inputs from IANS)


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