U.S. IT employment in September remains flat despite job market gains — TechServe Alliance
VIRGINIA, UNITED STATES — The United States information technology (IT) sector experienced stagnation in September, with employment levels remaining effectively flat despite broader economic growth.
According to a report by the TechServe Alliance, a national trade association for the IT and Engineering Staffing and Solutions Industry, the sector experienced a slight decline of 0.03%, losing approximately 1,700 jobs from the previous month.
This trend underscores ongoing challenges within the industry. The IT job market has contracted by 0.28% over the past year, resulting in a loss of 15,100 positions.
Broader job market surges
In contrast to the IT sector’s stagnation, the overall U.S. job market exceeded expectations by adding 254,000 jobs in September.
This growth was particularly evident in the engineering sector, which saw a robust increase of 0.92%, adding 25,800 jobs during the same period. The disparity between these sectors highlights the unique challenges faced by the IT industry.
Expert insights on IT employment trends
“While the broader economy showed resilience in September with stronger-than-expected job growth, IT employment remains largely stuck in place,” said Mark Roberts, CEO of TechServe Alliance.
Roberts noted that this pattern has persisted throughout 2024, following a downward trajectory in late 2022 and throughout 2023. He added that monthly fluctuations have been minimal.
Optimism for future growth
Despite current stagnation, there is optimism for future growth in the IT sector. Roberts expressed hope that with economic uncertainties diminishing and upcoming elections concluding, 2025 might foster an environment more conducive to investment and expansion in IT.
“We are optimistic that 2025 will bring an environment more conducive to growth and investment in IT,” he stated.
Sector-specific growth trends
While IT employment remains flat, other tech-related sectors have shown growth. Computer systems and design services saw a modest increase of 0.11% month-over-month and a significant annual growth of 1.94%.
Similarly, data processing and hosting services experienced a monthly rise of 1.21% and an annual increase of 2.12%. These figures suggest that while the core IT sector faces challenges, related areas are experiencing positive trends.
