The US Bureau of Labor Statistics on March 31 launched its 2020 Occupational Employment Survey. We use this knowledge for our estimates and forecast of US enterprise and authorities spending on tech employees, using each the information on tech jobs by trade and on common annual salaries for various tech positions. However the OES survey can also be helpful for insights on the state of demand for various kinds of tech-related work, in addition to insights on which industries employed or laid off tech staff within the midst of 2020’s pandemic recession. Listed here are some key takeaways, beginning with the occupational knowledge after which shifting to the trade perspective.
US Tech Jobs Grew By 1.2%, With Information Scientists and Data Safety Analysts Most In Demand
The 2020 OES survey was carried out in Might 2020, close to the low level within the pandemic recession. Complete US employment in Might 2020 was 12% decrease (or 17.6 million fewer jobs) than in Might 2019. However tech jobs had prevented that destiny (see the Determine under).
- The complete variety of US tech jobs in Might 2020 was 1.2% larger than in Might 2019. Complete employment for laptop and data system managers and a dozen or so tech-related occupations amongst each tech distributors and tech customers was 4,981,000, a rise of just about 60,000 from 2019 ranges.
- The most important share improve was for knowledge scientists, up 94%. Two years in the past, BLS didn’t break this out as a separate occupation. In 2019, when BLS first reported knowledge for da scientists, it counted 31,000 staff. In 2020, it discovered 60,000 staff. This development is proof of the quickly rising curiosity in and adoption of synthetic intelligence algorithms, datasets, platforms, and functions. Further proof was the 6.5% development within the variety of database directors and archit.
- Data safety analysts elevated by virtually 10%. The fast enlargement in assist for work-from-home preparations for workers and distant studying techniques for college kids created the potential for equally fast enlargement within the factors of safety publicity. Companies employed 12,000 extra safety specialists to take care of these safety dangers.
- 5% development within the numbers of laptop managers, software program builders, Net builders, and laptop community architects. Pc managers and laptop community architects have been in excessive demand to assist new working-and-learning preparations and the calls for that placed on networks. However IT departments additionally confronted calls for to assist new buyer gross sales, advertising, and companies channels, which drove demand for software program and Net builders.
- Pc programmer jobs continued to shrink, down 10.7%. It is a multi-year development, as corporations undertake extra SaaS functions which have extra restricted room for personalisation and because the enlargement of no-code/low-code choices makes it simpler for non-specialists to create customized apps when wanted.
- Community and laptop system directors, operations analysis analysts, and laptop techniques analysts skilled lowered demand. The variety of jobs right here fell by 3% to 4%, as companies pared the employees for operating inner system and supporting main course of change initiatives. The variety of laptop analysis scientists fell by 2%, whereas the “all different laptop occupation” class noticed an virtually 8% decline. A few of that lower in “all different”, although, is the reclassification of information scientist jobs into its personal new class.
- Diminished workforces did trigger small decreases in tech assist employees. Given the steep 12% decline in complete US employment from 2019 to 2020, the 1% to 2% lower within the variety of laptop consumer and laptop community assist specialists ought to be seen as comparatively optimistic information for these positions.
- Common salaries for tech staff typically rose in 2020. The most important will increase have been within the knowledge and analytics occupations of database directors and designers (3.9%) and knowledge scientists (3.4%). However common salaries for laptop community assist specialists rose at the same charge of three.5%. General, common salaries for many tech jobs rose by round 2%. The most important shock was the 0.4% improve in common salaries for info and safety analysts, regardless of the ten% development within the variety of jobs.
eCommerce-related Industries Had The Strongest Development In Tech Jobs In 2020
What makes the OES so helpful to a tech market forecaster is its knowledge on tech jobs by trade. Sifting via that knowledge and making changes to separate out tech jobs concerned in product improvement and assist at tech distributors from these in IT departments, we discovered the next surprises (see subsequent Determine):
- Jobs at IT departments in retail jumped by an astounding 35%. This improve was concentrated within the non-store retailer trade, which noticed a 72% improve in tech jobs. The dramatic shift to on-line procuring induced these retailers to interact in a hiring frenzy to amass the tech employees wanted to assist that shift in client spending. The variety of IT jobs in all different retail segments dropped by 12%: auto sellers (-8%), furnishings (-39%), groceries (-2%), constructing supplies (-6%), attire (-35%), recreation gear (-30%), and common merchandise (38%).
- Jobs in transportation and logistics shot up by 11%. Once more, two segments of this trade — warehousing and storage, and couriers and messengers– accounted for many of the improve in hiring. Nevertheless, corporations in truck transportation, water transportation, rail transportation, pipelines, and even air transportation additionally elevated their tech employees.
- Companies industries expanded tech jobs by 1% to 2%. Skilled companies, monetary companies, media and data, and authorities grew their IT workforce at these modest charges, as did producers.
- Leisure and leisure, utilities, healthcare, telecom and knowledge, wholesale, and social companies and non-profits reduce their tech workforces. The 11.9% drop in tech staff in leisure and leisure isn’t a surprise given how badly harm this trade was by the pandemic. Extra stunning have been the ten% drop in IT jobs at utilities and the 5% reduce in healthcare IT positions.
- Common IT division tech salaries rose by 2.1% in 2020 with some industries growing salaries even sooner. By way of tech salaries, a 4.8% improve within the common wage of tech staff in retail is just not a shock given their efforts to develop their tech workforces. Neither is the three% rise in tech salaries in transportation and logistics. However a 3.9% soar within the common IT wage in healthcare is stunning given the shrinkage within the IT workforce there. The reason lies within the healthcare trade’s adoption of AI-based medical analysis techniques, which induced that trade’s employment of information scientists to quadruple from 2019 to 2020 and thus elevated its common wage for tech staff.
Implications For The 2021 US Tech Market Outlook
The OES report is yet another signal that the 2020 pandemic recession was a lot much less damaging to the US tech market then we had feared. On the similar time, it does restrict the expansion potential for 2021 — with comparatively few layoffs of tech staff in 2020, there’s much less room for re-hiring. The eCommerce-related industries that ramped up hiring in 2020 might now be totally staffed. So, our expectation is that tech job development in 2021 can be average within the 2% to three% vary. Given regular development in jobs and continued low inflation, we expect compensation development will stay in the identical vary of two% to three%. So, our forecast is that complete spending on compensation and advantages for tech employees in IT departments will develop by round 5% in 2021.