Don’t believe everything you hear. Even when layoffs dominate the news, the tech job market is strong.

If headlines are to be believed (and when has the internet ever led us astray?) the prospects for laid off tech workers look bleak. After over hiring during the Covid pandemic, over 140,000 workers were laid off from 1,024 U.S. based tech companies in 2022. That’s higher than the number of layoffs in 2020 and 2021 combined; it’s an increase of 649% and the highest since the dot-com bubble of the late 1990’s. As of March 27, a total of 523 U.S. based tech companies have laid off more than 118,000 workers in 2023.

We’re paying close attention to these trends because other factors contributing to tech layoffs are troublesome. Fear of recession looms on our periphery, ever since data from the U.S. Bureau of Economic Analysis showed a shrinking economy in July 2022 for the second straight quarter. According to the U.S. Bureau of Labor Statistics (BLS), 2022 saw the highest inflation rate in 40 years. Macroeconomic and global uncertainties impact businesses, and the recent collapses of the Silicon Valley Bank and Signature Bank were the second-and third- largest bank failures in the history of the U.S.

In many cases, the layoffs could have been better handled by the Big Tech companies. Workers discovered they were fired when they were unable to access their phones and computers. Termination emails were sent at 3am. And workers were quick to post the unfiltered drama on social media. The thoughtlessness of the announcements was a bad look, and certainly didn’t assuage public insecurities about the possibilities of economic downturns affecting the tech industry.

Fortunately, data paints a more accurate picture of reality. The future for tech workers looks a lot more hopeful than the distressing TikTok’s would have you believe.

According to the Bureau of Labor and Statistics, the U.S. added 4.5 million jobs to its economy in 2022. Unemployment fell to 3.4%- the lowest it’s been since 1969. Comparatively, the number of people working in tech occupations was at a record high of about 6.5 million people in December, 2022, and their unemployment rate was near a record low of 1.8%. 264,500 tech industry jobs were added to the market in 2022, and about 375,000 tech jobs remained open in January 2023.

The tech workers that were laid off are bouncing back quickly. Roughly 79% of workers hired after a layoff landed their new job within three months of starting their search. 39% reported that their job search took just one month, and only 5%are out of work for longer than 6 months. Over half are earning more in their new job.

The U.S. tech industry is recalibrating, but it’s still strong. It was estimated to reach a market value of $1.8 trillion by the end of 2022, accounting for over 10% of the U.S. GDP, and it’s expected to grow by 5.4% in 2023.

Big tech firms making cuts are still outnumbered by midsized tech companies that are hiring. And traditional industries are adding tech jobs at an ambitious pace. Companies are ready to upgrade their legacy stacks and migrate applications to the cloud, to keep up with exponential tech advancements. Businesses need to address new areas of concern, such as cybersecurity. In fact, employers in the U.S. have posted almost 715,000 cybersecurity openings in the past 12 months. Companies are also seeking to apply technologies such as 5G, AI, and edge computing to their processes. As new industry regulations are being influenced by climate change and social impact, systems need to be updated. Companies need to enhance their user experience to meet the expectations of the Gen Z digital native customers.

Industries that have stepped up the pace of their tech hiring include banks/financial services, manufacturing, farming, aerospace, real estate, healthcare, and government. The US Department of Veterans Affairs is hiring 1000 new tech workers to modernize benefits software and revamp medical appointments scheduling.

It’s serendipitous timing- after being pummeled by the chaotic tsunami of big tech layoffs, many tech workers are reevaluating their priorities as they consider the next step in their careers. Pursuing a tech job in another industry is appealing to them for reasons they may not have been thinking about prior to the pandemic. Mature companies offer stability. Not for profits attract idealistically minded, mission-driven workers. And many companies offer flexibility to accommodate a sustainable work/life integration.

A technical skill set is always valuable, and it’s still in demand. Businesses in traditional industries are jumping at the chance to snag top tech talent to help them fast track their modernization efforts. And historically, innovations in the tech industry are necessitated by economic downturns. It’s good news for tech workers.

Photo by Tim Gouw on Unsplash