Study: Tech Sector Layoffs Have Employees Worried

Tech professionals are experiencing mixed feelings about the state of the job market, based on new survey data discussing tech sector layoffs.

The tech career database Dice released its Tech Sentiment Report, which interviewed professionals in the technology industry about their feelings regarding the state of the job market and the growing number of tech sector layoffs. The Q2 2024 survey combined the responses from over 500 tech professionals and nearly 400 human resources professionals in an attempt to grasp at the state of the market. Sixty percent more tech professionals lost their jobs in 2024 compared to 2023, according to Dice. It also found that 18% more tech professionals are actively job hunting in 2024 as compared to 2023.

That growth in job losses has shaken trust in the market. Professionals were asked to rate their confidence level on a scale of 1 to 5. Confidence levels remained in the middle year-over-year, with 42% of respondents stating that they were rating their confidence around 3. Only 31% of respondents said they were very or somewhat optimistic.

HR professionals, in contrast, were far more optimistic about the market. Seventy-nine percent of HR professionals held a positive view of the technology job market, as compared to 31%.

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Dice Data Matches Tech Sector Layoff Trends

Dice's reports correlate with Wall Street Journal reporting, which found that tech jobs were slowly drying up and unlikely to come back as competitors invest more and more into AI to perform certain key jobs.

Employers are being urged to be cautious about technology hiring. According to a review of the Bureau of Labor Statistics by the pro-tech nonprofit CompTIA, the market has remained fairly flat month over month. The unemployment rate for tech-related jobs has grown to 3.4%, although it remains well beneath the national unemployment rate of 4.2%.

CompTIA's Tim Herbert

“The bumpy stretch of tech labor market data requires the usual balancing of shorter-term and longer-term perspectives,” said Tim Herbert, chief research officer at CompTIA.

Several larger technology companies are starting mass layoffs. IBM is quietly laying off thousands of workers, according to The Register. Employees are reportedly signing NDAs forcing them to not speak about the specifics related to the layoffs.

Analysts have also grown concerned about the surge of tech sector layoffs. RBC Capital Markets published a note on Sept. 9 noting the growth of layoffs in that market. “What caught our attention was the spike in layoffs for technology companies which wasn’t as bad as those seen in late 2022 and early 2023, but otherwise rivals some of the worst spikes this industry has seen over time,” the analysts wrote.

Related:PwC Layoffs Reportedly Hitting 1,800 Workers Amid Slowing Demand