The IT jobs market is in the midst of an evolution that’s moving as quickly as the IT channel itself. There is now a greater emphasis on employers providing a more employee-focused environment and for employees to be trained in emerging technologies flooding the channel, including the various applications of artificial intelligence (AI) technology.
To remain competitive, service providers should take a holistic approach to talent acquisition. Being cognizant of what your business needs and what an employee needs will help to overcome the challenge of sourcing, attracting, and retaining talent in an uncertain hiring environment.
What is the current IT job market like?
In 2022, the IT industry saw a downturn that led to widespread layoffs that persisted throughout 2024. More than 250,000 IT workers lost their jobs during that time. While the pace of layoffs has slowed down, companies still shed jobs in 2024, with more than 50,000 jobs cut at more than 200 organizations, according to Layoffs.fyi.
Luckily, there’s hope on the horizon for job seekers in the IT landscape. According to the U.S. Bureau of Labor Statistics (BLS), overall employment in IT occupations is projected to grow faster than average for all occupations over the next decade.
“About 356,700 openings are projected each year, on average, in these occupations due to employment growth and the need to replace workers who leave the occupations permanently,” BLS cites.
While openings appear to be trending upwards, ManpowerGroup’s recent Employment Outlook survey, which surveyed 40,340 employers from 42 countries, found that 76 percent of IT employers face difficulties finding the talent they need.
Robert Half’s Demand for Skilled Talent report states that 450,000 new software applications and development jobs were posted throughout the first six months of 2024. The report also states the demand for consulting, enterprise systems, AI, machine learning, and data sciences roles grew, too.
Over the past few years, there has also been a noticeable shift in what employees want out of their employers. In ManpowerGroup’s survey, employers have responded to employee desire to increase their work-life balance with 56 percent of them making it a top priority as they focus on increasing worker retention rates.
The best way to attract talent
When it comes to attracting talent to your MSP, it’s not unlike your customers selecting IT solutions and services from their IT partner. You must first identify the needs that your MSP requires. Identify which critical positions are essential to your MSP’s success, determine which technical and soft skills are required for those roles, and, ultimately, consider the skills and roles needed for the future growth of your MSP.
Once these key components are identified, the next step is to establish an attractive employer brand to make your company appealing to potential employees.
MSPs should establish a company culture and showcase what makes their company unique to appeal to the talent they’re recruiting. In addition to putting a spotlight on your unique company culture, MSPs should define what makes their company a great place to work, as well as utilize your company website and social media to highlight your company’s culture and achievements.
Additional strategies for attracting and retaining top talent, according to Gradient MSP, include:
- Providing competitive compensation and benefits
- Providing career growth and development opportunities
- Leveraging employee referral programs
- Establishing thoughtful recruitment and onboarding processes
- Recognizing and rewarding employees for contributions
- Continuously improving and evaluating recruitment strategies
What IT jobs are in demand
The most in-demand roles for tech workers in the channel will require skills in AI, cybersecurity, cloud, and data analysis.
According to the ISC2 Cybersecurity Workforce Study 2023, the global cybersecurity workforce increased nine percent from 2022 while the talent gap for cybersecurity widened by 13 percent since 2022. The talent gap continues to outpace the size of the workforce, so to meet the growing demand, potential employees and employers should focus on cybersecurity certifications and other transferable skills like problem-solving.
Market research firm Gartner found that by 2025, 95 percent of new digital workloads will be deployed on cloud-native platforms, compared to just 30 percent in 2021.
“There is no business strategy without cloud strategy. The adoption and interest in public cloud continues unabated as organizations pursue a ‘cloud first’ policy for onboarding new workloads,” said Milind Govekar, vice president at Gartner.
Additional research from 365 DataScience found that the demand for AI and ML specialists will grow by 40 percent from 2023 to 2027. Recent research from Noble Desk also found that the global data analytics market is projected to grow from $23 billion back in 2019 to $133 billion by 2026.
The World Economic Forum’s (WEF) 2023 Future of Jobs Report reaffirms the findings on the number of AI and machine learning jobs, stating that they’re expected to grow 40 percent by 2027. The surge is projected to create one million new jobs by 2027, the largest growing group of any IT occupation.
“More than 75 percent of companies are looking to adopt [big data, cloud computing, and AI] technologies in the next five years,” the report states. “AI and machine learning specialists top the list of fast-growing jobs, followed by sustainability specialists, business intelligence analysts, and information security analysts.”
The future of IT jobs
Looking forward, the future of IT jobs extends beyond the technology itself and into how technology can be applied to business operations as a whole. Environmental and economic trends will play a significant role in the job market and drive where potential employees will want to develop their skills.
Many organizations predict that the strongest net job-creation effect will be driven by investments that facilitate the green transition of businesses and the application of environmental, social, and governance (ESG) standards. As economies increasingly shift towards renewable energy, renewable energy engineers, and solar energy installation and system engineers are fast-growing roles.
Adequate training will also need to increase substantially for those already employed, as six in 10 workers will require training before 2027.
“Training workers to utilize AI and big data ranks third among company skills-training priorities in the next five years and will be prioritized by 42 percent of surveyed companies,” the WEF writes. “Employers also plan to focus on developing worker’s skills in leadership and social influence (40 percent of companies); resilience, flexibility, and agility (32 percent); and curiosity and lifelong learning (30 percent).”
According to a survey from Skillsoft, cloud computing skills remain in high demand and IT professionals skilled in cloud computing, security, data privacy, and risk management are positioned for success in the channel.
Certifications for various fields in the channel can help drive success for both MSPs and tech talent. Read more about which certifications in AI, cloud, and security can fill in-demand roles.