By – Joel Crandall, President & CEO, MnTech
Confession: In my first few weeks as CEO of MnTech, I misplaced the Tech Talent crystal ball that we keep around our office. I would typically consult it when member companies, technologists, training organizations or policy makers understandably asked: “What’s going on with the technology job market?”
While I continue to rummage in dark storage closets for my fortune teller—I wanted to share what we are seeing, what we are wondering, and what we are doing around tech talent.
What we are seeing
Freezing and reducing: We are watching technology organizations freeze or slow hiring, and other organizations laying off workers.
Attributing to AI: Organizations are often attributing these moves to the impact of AI.
Broad spectrum impact: Beyond the hype—there do seem to be reductions and changes directly impacting technologists at different experience levels.
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- News from Microsoft last week about a 3% reduction in staff was noteworthy because of the roles that were impacted. “In Washington state, more than 40% of the 2,000 employees let go were software engineers, with product managers and technical program managers also disproportionately affected.”
- This week, The New York Times ran an article about the impact of AI on technology roles for recent college graduate. “Oxford Economics, a research firm that studies labor markets, found that unemployment for recent graduates was heavily concentrated in technical fields like finance and computer science, where A.I. has made faster gains.” The Atlantic also had news in a similar vein.
Locally: We continue to watch what is happening with hiring trends for local companies as well. Even though there is not a direct correlation between these national trends and what is happening in Minnesota, it is noteworthy that posting levels have remained low and steady over the last 20 months with an average of 5-6k postings per month.
What we wonder
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- Is this really a downshift?: Technology organizations consistently expand, contract, and realign. Though this shift feels significant, I don’t have anything more than anecdotes to prove volume.
- Is this really AI?: Whether companies have truly leveraged higher efficiency or simply attributing change to technology advancement is unclear.
- Is there still need for developing technologists?: I continue to believe that the training and development of future technologists is critical. Oliver Shaw, CEO of Orgvue, said recently: “We’re facing the worst global skills shortage in a generation and dismissing employees without a clear plan for workforce transformation is reckless. Some leaders are waking up to the fact that partnership between people and machines requires an intentional upskilling program if they’re to see the productivity gains that AI promises.”
What we are doing
MnTech is invested in creating a healthy ecosystem where technologists are inspired, hired, developed, and retained. Though the focus of our members shifts over time, we continue to invest broadly.
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- Inspire and Hire: Finding great technology talent is and will continue to be critical to companies.
- The development of AI tools and the current shift in the job market does not mean that we should step back from training young people in technology. Rather, it signals a broader technology knowledge required across organizational silos.
- We advocate at a state level for computer science education so young people can be prepared for jobs of the future.
- We invest in Aspirations and other programs that help to inspire young people to consider technology for their future career.
- It also doesn’t mean that there are no organizations that are currently hiring:
- We manage a job board for our members that are hiring now to get the word out about current openings.
- The development of AI tools and the current shift in the job market does not mean that we should step back from training young people in technology. Rather, it signals a broader technology knowledge required across organizational silos.
- Develop and Retain: Upskilling, reskilling, maintaining and engaging employees is a strategic advantage.
- We train today and tomorrow’s technology leaders through programs like ACE Leadership.
- We empower the leaders driving our companies through resources like our talent dashboard, our annual State of Tech Talent report, and our annual Tech Talent conference.
- Inspire and Hire: Finding great technology talent is and will continue to be critical to companies.
When I find my crystal ball, I’m certain the future of Tech Talent will remain unclear. What is clear is MnTech’s commitment to building a vibrant, innovative, and inclusive tech ecosystem in Minnesota on behalf of our members and our state.