Artificial intelligence is driving growth for the IT workforce, and jobs in the technology sector are stabilizing as the market continues to show moderate growth amidst economic volatility, rapid hiring cycles, and public layoffs, according to a new study by IT staffing firm Motion Recruitment.
IT unemployment rates have been below the national U.S. average for the past five years, and there are 56% more tech job postings in 2024 than in 2019, according to the firm’s 2025 Tech Salary Guide. Another positive sign is that 70% of IT job seekers report receiving multiple offers while searching for new roles. The Motion Recruitment report pulls data from multiple other sources such as Indeed and Pluralsight to determine trends in tech hiring and the job market.
“The headline emerging from the data highlights a key trend: after four years of significant fluctuations, 2024 marks a year of growing stabilization in the tech sector, leading toward gradual but continuous growth,” the report states.
For instance, 48% of organizations said they plan to add workers due to an increase in AI investments, compared to 19% that said they would downsize in relation to the technology. AI is also credited with transforming existing roles, with 23% of organizations shifting existing staff positions into roles that directly address AI, according to Motion Recruitment.
“Out of the current list of highest-paid skills in tech, half are related to artificial intelligence and machine learning, with generative AI taking the top spot,” according to the report.
Yet on the other hand, IT salary growth on average is nearly flat year-over-year, with just a 1% increase overall. And the number of fully remote positions is decreasing as the average time spent in office has grown from 1.1 days per week to 3.4 days per week, the report states. Only 10% of job postings now offer fully remote positions, the report states.
“As we approach 2025, tech hiring managers and candidates are seeing notable shifts. While hiring is on the rise, 87% of tech professionals feel secure in their current roles,” said Matt Milano, president of Motion Recruitment, in a statement. “To attract talent, companies must be quick to move on top candidates and flexible in their total compensation package. Job seekers should base their expectations on the current market, not past inflated figures—and be prepared to come in-office for a higher starting salary.”
The report also shines a light on the greater implications of IT skill shortages. According to Motion Recruitment, “the IT skills shortage has resulted in an estimated $5.5 trillion in losses due to product delays, reduced competitiveness, and lost business opportunities.”
In response, companies are moving toward skills-based hiring, which looks more at track records and previous projects to gauge a candidate’s current skill set—rather than relying on strict traditional criteria, Motion Recruitment reports.
Source:: Network World