Tech Unemployment Dips to 3.4% in May: A Silver Lining Amid Economic Challenges
Dice.com•2 months ago•
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Tech Unemployment Dips to 3.4% in May: A Silver Lining Amid Economic Challenges

Career Opportunities
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unemployment
ai
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Summary:

  • Tech unemployment rate dropped to 3.4% in May, outperforming the national average of 4.2%

  • AI jobs are booming in major tech hubs like San Francisco and New York City

  • Employers are prioritizing skills over degrees, with many roles not requiring a four-year degree

  • Experience levels vary, but showcasing a portfolio can help newcomers break into the industry

  • CompTIA’s Jobs Report offers deeper insights into remote jobs and hiring trends

Tech Unemployment Shows Resilience

The tech unemployment rate decreased slightly from 3.5% in April to 3.4% in May, as per the latest CompTIA analysis of U.S. Bureau of Labor Statistics (BLS) data. This contrasts with the national unemployment rate, which remained unchanged at 4.2%.

Hiring Trends in the Tech Sector

Despite economic uncertainties, including tariffs and mass layoffs, the tech sector managed to add 1,571 net new employees in May. However, tech occupation employment across the broader economy saw a decline of approximately 131,000 jobs.

AI Jobs: A Bright Spot

AI and machine learning positions are thriving in major tech hubs:

  • San Jose and San Francisco: 17% and 13% of all job postings, respectively.
  • New York City: 9% of tech job postings focused on AI.
  • Seattle and Washington DC: Notable for their AI hiring activity at 7% and 5%, respectively.

Skills Over Degrees

Employers are prioritizing skills and experience over formal education:

  • 86% of network support specialist postings didn’t require a four-year degree.
  • Similar trends were observed for tech support specialists (77%), network and systems administrators (47%), web developers (49%), and database administrators (55%).

Experience Requirements

  • 30% of tech job postings sought candidates with 4-7 years of experience.
  • 17% required 8 years or more.
  • 20% were open to those with 0-3 years of experience.
  • 33% did not specify experience requirements.

For those new to the industry, showcasing a portfolio of work and a demonstrated aptitude for learning can be key to securing interviews.

Further Insights

Explore more data on remote jobs and top industries for tech hiring in the latest CompTIA’s Jobs Report.

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