Although 2024 was a challenging year for many tech professionals, marked by layoffs and fewer job opportunities, a new Dice report indicates that the situation could be worse.
In a survey of 520 active US tech professionals, 80% maintain a positive outlook for the tech sector over the next five years. The more immediate outlook acknowledges that “layoffs have been particularly severe this year,” with 60% more tech professionals losing their jobs in 2024 than in 2023.
Additionally, the report found “a notable decline in the proportion of full-time employees within the tech sector.” In last year’s survey, nearly half of respondents (48%) were employed full-time. This year, that figure has fallen to 38%, pointing to a worrying trend of less job stability, the report said.
The proportion of respondents who are unemployed but actively looking for work has increased significantly, from 34% in 2023 to 40% in 2024.
Despite the turbulent times, the most surprising findings from the survey are that “compared to last year, significantly more tech professionals currently working full-time are actively seeking new positions and are more likely to change employers in the next year,” Dice CEO Art Zeile told TechRepublic. “This is happening despite them being less confident about finding a favorable position within the tech industry.”
Perspectives on technological growth in today's economy
The report noted mixed feelings about the future of technological growth.
Nearly a third of technology professionals (31%) remain cautiously optimistic about economic conditions for the coming year, unchanged from the previous year. However, a nearly equal percentage of technology professionals hold pessimistic views, indicating a split in economic sentiment across the industry. Only 20% of younger professionals ages 18-34 have an optimistic view of the economy, the lowest percentage among those surveyed.
Tech professionals with a more optimistic view attributed their positive outlook to:
- A strong belief in technological progress.
- Confidence in your abilities.
- The presence of favorable economic indicators.
“In an election year, it is not surprising to see that this optimism is often tempered by awareness of potential challenges, including economic and political changes that could influence what the next year brings,” the Dice report said.
The most pessimistic tech professionals expressed concerns about economic policy, labor market volatility, inflation and political instability.
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Areas of interest: Rise of AI, Decline of Cloud Technology
The survey also found an emphasis on AI and machine learning skills, which “aligns with tech professionals’ expectations that AI/ML will be the fastest-growing field over the next five years.” Already, 76% of HR professionals reported that their companies already offer the opportunity to train or upskill in AI or ML.
Despite the big focus on generative AI, “fewer tech professionals appear to have adopted the technology into their workflow than expected: only 30% use GenAI at least once a week,” Zeile noted.
According to the report, the focus on cloud technologies has “decreased significantly this year,” down to 46%. This may be due to the maturity of cloud technologies in recent years, which has made the skill set more widespread and fewer professionals investing in improving their skills in this area.
Other areas where technology professionals said they were upskilling or retraining in anticipation of future growth include cybersecurity (46%), big data (43%), the Internet of Things (22%) and robotics (15%).
What tech professionals want in their next role
Nearly all job-seeking respondents (94%) are aiming for full-time positions. Motivations for considering a job change include:
- Higher compensation (65%).
- Greater responsibility (42%).
- Improved benefits (36%).
“These factors highlight a workforce that is not only financially motivated but also seeking professional growth and stability,” Dice’s report notes.
Dissatisfaction with their career, their work and management in general are the factors that drive tech professionals to change jobs. This dissatisfaction is also compounded by a higher rate of burnout, which is 3.3 times more common among those planning to change employers, according to the report.
The top cause of burnout cited by these professionals is a “toxic work environment,” reported by 28% of those likely to change jobs, followed by unfair pay, cited by 21% of tech professionals in this group.
Most tech professionals can find positions in non-tech industries that allow them to leverage their specialized tech skills. However, working in tech is the clear preference among respondents. Nearly seven in ten tech professionals would like to work for a tech company, and 21% prefer to work specifically for large tech companies.
While tech layoffs and downsizing of certain positions have defined much of 2024, Zeile noted that “certain tech subindustries, such as cybersecurity, are facing severe shortages of workers with very specific skills.” He cited ISC2’s 2024 Cybersecurity Workforce Study, which found that 4.8 million tech professionals are needed worldwide to fill open cybersecurity positions.
Zeile remains optimistic about the future of tech professionals, saying that “new technologies like AI are already changing the landscape – bringing more new types of jobs and certainly more necessary skills to the market than they are taking away.”
He added: “While the current hiring landscape may seem tumultuous, if there is one thing that history and data consistently show, it is that hiring trends are cyclical. Signs point to hiring in the tech sector increasing compared to last year. Tech professionals and tech applications should remain optimistic and continue to focus on building their careers for the long term.”
