Tech Industry Outlook 2023
New year, new you! Learn what the tech industry has in store for 2023.
The technology industry is a historically prosperous sector.
The U.S. tech industry has an estimated $1.8 TRILLION market value and employs roughly 12 MILLION workers.
The tech sector has also brought countless innovations in 2022 — smarter devices, better computing power, and artificial intelligence and machine learning. These inventions have impacted our quality of life, communication, and much more.
So what can we look forward to in the technology industry in 2023? Here’s what you need to know about the tech industry outlook in 2023, including a look back at the biggest 2022 tech layoffs.
Table of Contents
- What You Need to Know About the 2022 Tech Layoffs
- Tech Industry Outlook 2023
- There’s a Place For YOU In Tech
What You Need to Know About the 2022 Tech Layoffs
2022 was a big year for tech, but the industry is not without its faults.
Here’s a sobering fact: 142,500 tech professionals lost their jobs in 2022 (at the time of publishing), according to Layoffs.fyi.
Layoffs across all industries are (unfortunately) a normal occurrence in the modern workplace.
In fact, according to a PwC survey, 50% of 722 U.S. executive respondents across all industries reduced their company’s headcount and 44% rescinded job offers in 2022.
However, when thousands of tech professionals are handed a pink slip, it’s understandable that alarm bells begin to ring. For seasoned professionals, mass layoffs can cause dismay and uncertainty. Likewise, career changers on the cusp of their big debut may feel doubtful.
Before you pull the plug on your tech career, read this tech industry job outlook.
Layoffs Predominantly Impact Big Tech
Mass layoffs in the tech industry are terrifying! But not to fear, the 2022 mass layoffs are a bit more nuanced.
Tech industry layoffs can affect anyone. However, tech professionals employed by Big Tech companies are more likely to be impacted than other tech professionals.
What is Big Tech?
Big Tech, also known as the Big Five, refers to the largest American tech companies: Alphabet, Amazon, Apple, Meta, and Microsoft.
In 2022 alone:
- Alphabet (Google) slowed hiring and investing. This news came after Alphabet reported revenue growth down to 6% from 41% in the previous fiscal year.
- Amazon initiated a hiring freeze and laid off 10,000 employees across its Devices and Books businesses. Amazon CEO Andy Jassy noted the state of the economy for ongoing “role eliminations.” Layoffs are projected to continue into early 2023.
- Apple also slowed spending and paused hiring for jobs outside of Research and Development that may continue through late 2023.
- Meta (Facebook) adopted a hiring freeze and laid off 11,000 employees, or 13% of its workforce. In a message to Meta employees, Meta Founder Mark Zuckerberg cited predictions for a permanent e-commerce acceleration initiated by the COVID-19 pandemic:
“Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I’d expected. I got this wrong, and I take responsibility for that.”
- Microsoft also laid off staff. The tech firm did not publicly announce the layoffs, but Axios reported that the number of employees affected was less than 1,000.
- And while not a member of the Big Five, Twitter laid off 3,700, more than half of its 7,500 workforce, according to Layoffs.fyi, after Elon Musk acquired Twitter. The Washington Post reported the layoffs were a bid to “place Twitter on a healthy path.”
All layoffs are devastating no matter the company’s reasoning. Job losses impact the livelihood and wellbeing of professionals and their families. Layoffs also affect the years of diversity, inclusion, and equity work completed by advocacy groups.
That said, there is hope in 2023. Tech talent is still in demand. How? Continue reading.
📌 Resource: Layoffs.fyi tracks ongoing tech industry layoffs.
Tech Industry Outlook 2023
Tech Talent is in Demand
Despite Big Tech layoffs, there’s still a demand for tech professionals. The industry is projected to grow 15% between 2021 and 2031.
How do the 2022 Big Tech layoffs impact the 2023 tech industry outlook?
Well, the layoffs largely do not affect the tech industry in 2023.
Here’s a pearl of wisdom:
💎 Mass layoffs are concentrated in Big Tech. Outside of Big Tech the tech sector is growing!
Yes, you read that correctly. According to CompTIA’s Tech Jobs Report, tech companies added 20,700 workers in October 2022, the 23rd straight month of job growth! Even more, tech industry employment increased by 193,900 in 2022, a 28% increase over the previous year.
Even more, the U.S. Bureau of Labor Statistics reported in 2022 that employment in the computer and IT sector is expected to grow 15% from 2021 to 2031. To break that down further, BLS projects about 682,800 new jobs will be added to the workforce. This projection is much faster than the average for all occupations.
While Big Tech is scaling back for varying reasons, medium and small businesses and startups continue to employ tech professionals for their unique and in-demand skill set. Likewise, companies outside of the tech niche seek sought-after tech talent.
Tech Employment Available Outside of the Technology Sector
When you think of tech, you probably think of the metaverse, social media, machine learning, artificial intelligence, or the IoT. But as you complete your coding bootcamp or consider your next career move, look beyond the Big Five and high-tech companies. In 2023, you will not need to work at a tech company to work in tech.
You can get into just about any industry with tech skills, from creative roles like web design and web development to C-suite positions like CFO and even CEO. Technical hard skills are especially valuable in our digital economy where more people own or desire smart tech and conduct business online. Likewise, emphasized soft skills like critical thinking are sought-after as companies try to better understand and serve their target audience.
The top industries posting tech positions in October 2022 were:
- Professional, scientific, and technical services
- Finance and Insurance
- Retail Trade
- Health Care and Social Assistance
- Public Administration
- Educational Services
- Transportation and Warehousing
- Administration and Support
To further illustrate that you can work in tech without working at a tech company, consider that Deloitte, Humana, and Accenture are amongst the top U.S. tech employers, according to CompTIA.
So whether you have a passion for fintech, you would rather make websites for nonprofits, or you see yourself working in education, there’s a place for you in tech — you just need to get creative! 😊
📌 Related: 43 Techy Jobs Outside of Tech to Apply for Today
Silicon Valley, Who?
While Silicon Valley is synonymous with the technology industry, you don’t need to uproot your life to pursue a tech career. New tech hubs are popping up across the United States, creating areas of opportunity for tech professionals.
According to CompTIA, the top metropolitans for tech job postings in October 2022 include:
- New York City
- Washington DC
- Los Angeles
- San Francisco
- San Jose
These booming and emerging tech hubs are a product of targeted campaigns to develop local economies.
For example, the Advanced Technology Development Center in Atlanta, Georgia, is an incubator for tech startups with wild success. Since its founding, 190+ companies have graduated from the program, with 90% of ATDC companies finding success after five years generating more than $12 billion in revenue. Even more, TECHicago in Chicago, Illinois, is a private-sector funded nonprofit organization encouraging and supporting the diverse growth of the Chicago tech hub, with events like TechChicago Off Campus and TechChicago Week.
The development of tech metropolitans across the nation are a win-win for tech professionals. Often, cost-of-living, employment opportunities, and personal limitations, like caretaking duties, are a barrier for entry into the tech industry. However, with tech hubs across the country, professionals may not need to move cross country, instead they may find tech jobs in their backyard.
Not ready to settle in The Big Apple or Silicon Prairie?
As of August 2022, five in 10 professionals work in a hybrid work environment, three in 10 work remotely, and two in 10 are entirely on-site, according to Gallup. Remote and hybrid work are increasingly accessible and a workforce expectation, a product of “The Great Global Work-From-Home Experiment” conducted during the COVID-19 pandemic. Many companies are rising to this expectation offering flexible work options. Hybrid work is expected to increase from 42% at the beginning of 2022 to 55% into 2023 and beyond.
📌 Related: The 25+ Best Sites For Finding Remote Work Online
There’s a Place For YOU In Tech
2023 is shaping up to be an exciting year for the tech sector and tech professionals. 🥳 Get in on the excitement with Skillcrush!
Find your place in the tech industry by taking our 3-minute tech quiz! The tech quiz will help you find your place in tech. Or test run our program through our free online introductory series, Camp Skillcrush.
Join the Skillcrush community and start your career in tech in 2023!