Throughout the first quarter of 2023, tech companies continued to lay off workers at a steady pace, and the tech unemployment rate crept up slightly (from 1.5 percent in January to 2.2 percent in February). However, new data suggests the pace of tech layoffs might be slowing—if only a little bit.
According to layoffs.fyi, which crowdsources its layoff data, the number of tech employees laid off declined somewhat between February and March, from 39,381 to 37,109. Meanwhile, the number of companies announcing layoffs dipped from 175 to 117. That’s quite a decline from January, when 89,514 employees were laid off from more than 271 companies:
Because the website is crowdsourced, these numbers may fluctuate over the next few weeks and months as more data trickles in. Although crowdsourcing isn’t exactly the most scientific way of determining any dataset, the trends noted by levels.fyi generally tend to align with other industry sources.
Some analyst firms also believe that the current spate of layoffs belies robust growth and hiring for a variety of tech roles. For example, CompTIA’s recent “State of the Tech Workforce” plugs that growth at 3 percent, or 272,000 new jobs. That would almost match 2022, when net tech employment grew by 3.2 percent, or 286,400 jobs. CompTIA estimates the following tech roles will grow at a notable pace over the next 12 months:
- Data Scientists and Data Analysts (5.5 percent growth)
- Cybersecurity Analysts and Engineers (5.2 percent growth)
- Web Designers and UI/UX (4.7 percent growth)
- Software Developers and Engineers (4.7 percent growth)
- Software QA and Testers (4.1 percent growth)
- CIOs and IT Directors (3.4 percent growth)
- Systems Analysts and Engineers (2.6 percent growth)
- IT Support Specialists (2.4 percent growth)
Despite the current turbulence, CompTIA added, the long-term prospects for tech workers remain bright: “According to projections from the U.S. Bureau of Labor Statistics and Lightcast, in the next ten years the tech workforce will grow twice as fast as the overall U.S. workforce. The macro trend of digital transformation means demand for tech talent across the full spectrum of tech job roles will continue unabated.”
In the meantime, the biggest of the big tech companies may continue to unleash layoffs. Even if they do, though, always keep in mind that organizations in multiple industries will still need tech talent—the tech industry is much bigger than what’s happening in Silicon Valley or Seattle.