I like to kick off the week with any significant market perspectives. I’ve got a few to string together.
According to a survey by IEEE, artificial intelligence (AI) is ranked as the most important technology globally in 2024. Other top technologies include extended reality, cloud computing, 5G, and electric vehicles. The study also highlights potential applications of AI in areas such as cybersecurity, supply chain automation, software development, and healthcare. Additionally, the survey identifies digital twins, 6G, quantum computing, sustainability, and cybersecurity as key priorities for the coming year.
According to an analysis by CompTIA, tech job gains in October were higher than expected, with an estimated 2,159 workers added by tech companies. The unemployment rate for tech occupations stands at 2.1%, compared to the national rate of 3.9%. Job roles in greatest demand include software developers, IT support specialists, systems analysts, and data scientists. California, Texas, Virginia, Florida, and New York had the highest volumes of tech job postings among the states.
Despite an increase in the number of people entering the cyber field, the demand for cyber workers is still outpacing supply. The global cybersecurity workforce has reached 5.5 million people, a 9% increase from 2022, but a new study by ISC2 reveals that the gap between demand and supply has grown by nearly 13%.
Broadly, The Employment Cost Index rose 1.1% in Q3, surpassing analysts’ expectations. Wages and salaries for all civilian workers have increased by 4.6% over the past year, remaining unchanged from Q2 and significantly higher than pre-pandemic levels.
And CEOs are resigning at record rates in 2023, with 1,425 exits in the first nine months alone. This trend is attributed to the challenging economic environment and is part of the “Great Resignation.” The tech and government/non-profit sectors have seen significant CEO turnover. Many CEOs retired or transitioned to other roles within their companies. The pressure to downsize and lay off workers and the controversy surrounding remote work policies have contributed to this trend.
According to JPMorgan, consumers are depleting their excess savings from the COVID-19 pandemic. Excess savings reached $2.1 trillion in August 2021 but have dwindled to just $148 billion as of last month. With high-interest rates and elevated inflation, consumers have relied on their savings to maintain spending. However, JPMorgan warns that as excess savings are fully depleted, consumers will face tighter credit conditions and rising rates, leading to higher delinquency rates and charge-offs in the coming quarters.
Why do we care?
It’s a bit of an eclectic mix, but it tells a story. Cyber jobs are still heavily in demand, and tech is seeing a need – although it’s localized and not spread everywhere. Broadly, salaries are going up… and notably, if you consider CEOs workers too, there’s still power to the workers. I also noted that some veteran CEOs got out of the game rather than deal with remote work.
Tech-wise, it should be no surprise about AI at the top of that list, but I wanted to note that the rest of the list is generally what you would expect… although a nod to digital twins as something of a newer surge. And note that broad consumers may not have the padding they have enjoyed. Some customers may feel that pinch a quarter or two out from now.