For just about the past decade, it has seemed like the global technology industry's growth knew no bounds. Fueled by new innovations is the realm of big data, AI, and the IoT, companies throughout the sector were locked in fierce competition for talented new workers. The demand was so great that a yawning gap developed between the skills of the available workforce and the ones tech employers needed most.
That situation has produced a seemingly endless amount of hand-wringing in the press, with dire headlines predicting that the technology industry would soon grind to a halt for lack of skilled workers. There's also been conjecture that growing economic and political instability is contributing to the problem. Now, as 2020 begins, and with the industry showing no signs of slowing, one question remains: is there still a tech skills gap? Here's what the available data suggests.
Signs of a Narrowing Gap
To begin with, there have been more than a few recent studies that have compared available tech job postings to the skills of the graduates streaming out of universities. One, which used data from job listings site Indeed on both postings and resumes added between 2014 and 2108 found that it's getting easier for tech firms to find workers with the skills they need. That result flies in the face of the conventional wisdom on the topic, but some additional research data shows that it's not quite that black-and-white.
Another study, which used survey data from resume service Enhancv found that there's no evidence that a tech skills gap even exists anymore. On the contrary, the problem seems to be that workers are building too many of the skills that employers no longer need, instead of the ones in the greatest current demand. That suggests that the real problem is the velocity of the change that takes place within the technology industry. It seems that their demands are changing far too fast for interested workers to anticipate and train for.
A Static Labor Market
Another common refrain that's been associated with the tech skills gap in recent years is that global economic and political uncertainty is contributing to the problems that tech firms (and all businesses, generally) are having filling open high-skill positions. On that front, the evidence is mixed. One survey, conducted within the UK by executive search firm Novoexec, found that the uncertainty in that country surrounding the pending Brexit isn't having a direct impact on average employees' decision making about seeking a new job.
It also revealed that 86% of rank-and-file workers aren't considering a job change at the present time. That speaks to a labor market that is somewhat static, which could mean that tech businesses aren't having trouble hiring because they're not losing as many existing skilled workers as they have in the past.
Interestingly, though, the same survey found that 70% of executives are looking for greener pastures, so it may, in fact, be employees at the highest levels that tech firms should be worried about. With respondents citing the desire for higher pay, more flexible work options, and a better corporate culture as prime motivating factors when looking for new opportunities - it appears that having a plan to retain top tech talent is vital, and that these areas stand out as central to any executive retention plans..
Weakening Demand
The last bit of data that should put the notion of the lingering tech skills gap to bed once and for all is the fact that demand for tech workers seems to be slowing. In the US, which is the second-largest technology market in the world after China, the picture painted by the jobs data is stark. A report from digital services firm Cognizant showed that the growth rate in tech jobs dropped to 12.8% in 2019, compared with a rate of 37% in the prior year. While the growth rate is still brisk, it's only about one-third of where it was during peak times. That illustrates how US tech firms are beginning to pull back from their growth phases and may be turning to the task of consolidating their market positions instead.
Indeed, instead of hiring new workers, the big tech firms seem to be plowing money into advertising and marketing efforts. While that's good news for digital marketing outfits like OutreachPete.com, who are seeing a dramatic uptick in tech firms seeking SEO help, it reflects an environment with shifting priorities that very clearly don't include bringing new high-skilled workers into the fold.
What Comes Next
While it appears clear that the tech skills gap that so many have been concerned with in recent years has all but vanished, it's worth noting that it's a static market and softening demand that did much of the work. When you also take into account the data which showed that job-seekers were over skilled in areas of weak demand already, it becomes possible to draw some conclusions about what might come next.
First, if economic conditions remain strong, it's reasonable to expect that the technology industry will resume its hiring frenzy before too long. If the workforce uses this lull to retrain for the skills that are likely to be in demand in the near future, when hiring picks back up it shouldn't reintroduce the same kind of skills gap that existed previously. All of that, though, remains to be seen - but for now, it's fair to say that the tech skills gap is officially a thing of the past. Let's hope it stays that way.
