IoT Analytics, the strategic intelligence provider for the tech industry, has shared an insightful report regarding industry trends in tech skills and recruitment during Q1 of 2024. Drawing on over a million job postings in the United States and analysing hiring practices of over 450 companies across various sectors, the report unveiled several critical discoveries.
The report's most prominent findings show that despite a 2% decrease in tech job openings in the USA in Q1 of 2024 and an overall 47% decrease since April 2022, there is a growing demand for AI-related expertise, specifically generative AI. Furthermore, the report reveals a surge in 5G and Wi-Fi-related job postings, whereas demand for cloud-related skills has noticeably declined.
Knud Lasse Lueth, CEO of IoT Analytics, explained the significance of the report: "Our new State of Tech Employment Spring 2024 report highlights a pivotal shift towards AI and expertise in the tech industry. Despite a 47% downturn in overall US tech job openings since April 2022, we're witnessing a surge in demand for generative AI skills." He also noted that AI providers such as OpenAI, Nvidia, and Anthropic are leading the pack in AI hiring.
Philipp Wegner, Principal Analyst at IoT Analytics, emphasised the impact of AI, stating, "The jump of AI-related job postings in Q1 2024 indicates that companies have realised that the talk of AI needs people that actually work on AI projects."
While the numbers show a decreased interest in cloud-related job posts, the demand for 5G expertise has significantly increased. 5G- and Wi-Fi-related job postings are on the rise while demand for 4G, cellular, Bluetooth, and LoRa expertise has declined. This is consistent with IoT Analytics' observations at the Mobile World Congress 2024, where advancements in 5G technology were a major focal point.
The downward trend for cloud-related job postings reflects the decrease in cloud revenue growth in 2023 as companies shifted their focus to cost optimisation. The report also disclosed that the industrial automation industry currently tops other industries in hiring intensity, with the telecommunications industry trailing behind.
The report concluded that job openings have decreased overall, but tech roles involving AI are on the rise. February 2024 saw the first month-to-month growth in tech job openings since the economic slowdown began, with the demand for AI and AI-related fields steering the upward trend. Key insights include a considerable month-over-month growth for Generative AI job postings, influencing the resurgence in tech job openings.
IoT Analytics' State of Tech Employment Spring 2024 report offers a comprehensive overview of the shifting dynamics within the US tech job market during the year's first quarter. By highlighting the growing demand for AI-related expertise, particularly in generative AI, and the increasing importance of skills related to 5G technology, the report equips industry stakeholders with valuable insights into emerging trends and areas of focus.
As the tech landscape continues to evolve, this report serves as a valuable resource for companies, job seekers, and policymakers alike, providing actionable intelligence to navigate the ever-changing demands of the tech industry.