February 7, 2023

The Indie Toaster

Complete News World

With the decline of Silicon Valley, the turnaround of tech talent has accelerated

“Almost every company goes through this — they need tech talent,” said Lori Beer, JPMorgan’s global chief information officer.

If the economy enters a recession, employment in technical occupations will suffer as well. There are already signs of weakness: Job postings may indicate hiring intentions. Online ads in November for tech jobs fell below 288,000, the first month this year they were below 300,000, according to CompTIA analysis of data from Lightcast, the employment analytics firm. .

Some labor market analysts expect a decline in hiring for technology jobs, especially if the economy weakens further. But history suggests that any downturn will be short-lived. There have been ups and downs, but job growth in technical occupations has nearly doubled since 2000, when 3.33 million Americans were employed in technical jobs, according to the Bureau of Labor Statistics.

In the aftermath of the dotcom crash, there were two months in 2003 when the unemployment rate for tech jobs rose above the national level. But for most of the past two decades, the percentage of unemployed in technology has been about half the national unemployment rate. In November, the unemployment rate for technology workers was 2% compared to the national rate of 3.7%.

Top JPMorgan executives have warned of economic turmoil, deal-making has slowed, and investment banking income has fallen sharply this year across Wall Street.

However, despite the uncertain economy, Ms. Beer said, the bank continues to invest selectively in technical skills, hiring people with expertise in cloud computing, machine learning and artificial intelligence, data science, and cybersecurity.

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JPMorgan employs more than 55,000 tech workers, up from about 50,000 before the pandemic.

Ms. Beer said hiring has been easier because of shrinking expenses in Silicon Valley. She said there are more candidates, and there are fewer competing offers for job candidates. Attrition has been reduced by about half.