Despite Recent Wave Of Mass Layoffs, Tech Companies Are Still Hiring, Report Reveals

According to a recent report from CompTIA, job postings for tech positions reached nearly 316,000 in March — the highest total in seven months despite a wave of layoffs

"The headline focus on Big Tech overshadows the enormous base of the tech pyramid," Tim Herbert, CompTIA's chief research officer, told MarketWatch. "Tech services, dominated by small and midsize companies, have filled the gap in hiring."

Counter to signals that the labor market may be cooling off, CompTIA reports that tech jobs increased by 197,000 in March and employers stepped up hiring activity.

"Big Tech is still ahead in employment numbers because they hired so many people over the last year or so," Herbert told MarketWatch. "Now they need to signal to the market that they are cost-efficient and are improving profit margins."

Also Read: The Jobs Market Remains Strong, Layoffs Aren't Fully Reflected In Official Data, And The Fed Doesn't Like It

Data from the Bureau of Labor Statistics showed that, overall, there were 236,000 additions in March and a drop in unemployment to a historic low of 3.5%.

However, employment in the tech sector dropped by 839 jobs in March, amid a wave of layoffs from the companies like Alphabet Inc (NASDAQ: GOOGL), Salesforce Inc (NYSE: CRM), Microsoft Corp (NASDAQ: MSFT), Intel Corp (NASDAQ: INTC), Meta Platforms Inc (NASDAQ: META) and others. 

The labor participation rate rose to 62.6%, compared to 63.4% in February 2020. 

The Labor Department also lowered January's total job growth by 32,000 jobs to +472,000 and raised February's job growth by 15,000 jobs to +326,000.

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