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In the Zone

Tech hiring bounces back, but small-biz still struggles

Peter Krass's picture

by Peter Krass on 02/10/2020
Blog Category: advanced-technologies

Tech hiring in the United States rebounded in January after several months of slow job growth, finds a new report. But most of those jobs, according to another report, were filled by large firms only. During 2019, head count at U.S. small firms was flat.

During January, U.S. companies added 370,000 core IT workers. That’s according to trade association CompTIA’s analysis of the latest numbers from the U.S. Bureau of Labor Statistics. These are organizations operating in sectors other than IT, but which have IT employees.

Also during January, the U.S. tech sector added 15,800 new positions, CompTIA finds. These are organizations operating in the IT sector, including computer vendors, telecom providers and IT services firms.

In the tech sector, the majority of new hiring came in just 2 categories, CompTIA says:  IT services, custom software development and computer systems design, which added 8,800 jobs in January; and data processing, hosting and related services, which added 5,300 jobs.

Postings up too

Not surprisingly, the number of IT job postings also increased. CompTIA says U.S. IT job listings increased by more than by 52,000 in January over December.

The most sought-after job positions in January were software developers and application developers. Those 2 positions alone had 115,100 postings.

By location, the states with the most IT job postings during January were California, Texas, Virginia, New York and Florida, according to CompTIA. The metro regions with the most IT postings were New York City; Washington, D.C.; Dallas; and San Francisco.

Small biz, small hiring

However, most of these new IT jobs are with large companies. The 5 U.S. employers with the most IT job listings during January were all large, according to CompTIA: Deloitte, Anthem Blue Cross, Wells Fargo, IBM and Amazon.

The number of people working at U.S. small companies didn’t budge last year, according to analysis of ADP payroll data by Moody’s Analytics. That was true even as larger businesses continued to expand their payrolls for a record 10th straight year.

Head count at businesses with fewer than 20 employees was essentially unchanged in 2019, according to Moody’s Analytics. The findings were first reported by the Wall Street Journal.

By contrast, large companies — those with at least 500 employees — increased their workforces by 2.3% last year, the Journal reports. And during January, the same pattern emerged.

Fortunately, the outlook for the rest of this year is better. The Journal recently surveyed more than 700 small-business owners about their hiring plans for 2020. Just over 60% said they expect their total number of employees to increase this year.

 

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