Introduction

The tech industry is experiencing unprecedented disruptions driven by advancements in artificial intelligence, automation, and emerging technologies.

These innovations are fundamentally transforming the way we approach technology and data. As a result, traditional roles are being reshaped, and new, specialized positions are emerging.

This is a big deal. And we’ll try to help you make sense of these changes…

Understanding these disruptions is crucial for professionals seeking to succeed in the tech world, even when you aren’t directly in a “tech” role.

The Troubled State of the Tech Industry

The tech industry has faced significant turbulence recently. In 2023, tech-salary growth slowed, dipping slightly to an average of $111,193 from $111,348 in 2022 (Dice). (Note: don’t forget inflation, this tiny dip is worse than it looks.)

This stagnation in salary growth came amidst a backdrop of large-scale layoffs, with over 191,000 tech workers losing their jobs in 2023 alone, compared to more than 93,000 in 2022 (Crunchbase).

The wave of layoffs have continued into 2024, driven by a combination of economic factors, interest rate changes, and the residual effects of pandemic-era hiring practices (TechTarget). In June, tech unemployment surged to its highest level in nearly four years (CIO Dive).

In other words, tech is going through a massive transformation, which involves layoffs, job and role changes, as well as organizational changes. (For more detailed data, refer to the 2024 Dice Tech Salary Report.)

Despite all these troubles, however, economists have revised the recession risks downward, and analysts foresee a modest rebound in tech growth in 2024. Key areas of focus for the industry will include leveraging advancements in AI, cloud computing, and cybersecurity to drive growth (Deloitte).

Remember: Even though we have all these layoffs, tech salaries are now on the rise. The 2024 Dice Tech Salary Report highlights that average tech salaries increased nearly 9% during a period when many tech companies were scaling back their workforce (Dice).

In other words, we are entering a period where we simultaneously have:

  • Fewer tech jobs

and

  • Better paying tech jobs

Current Tech Disruptions

These changes are happening in the middle of – and because of – unprecedented tech disruptions…

Understanding these disruptions as both layoff and growth drivers will set the stage, and help you uncover the skills that are in high demand:

AI and Automation
AI and automation are transforming job roles and hiring practices. In February 2024, 14% of tech job postings mentioned AI or ML skills, up from 9% in early 2023 (CIO).

Cloud Computing
Cloud computing remains a key driver of digital transformation, increasing demand for expertise in cloud technologies as businesses seek scalability and efficiency.

Cybersecurity Threats
Rising cybersecurity threats are heightening the need for skilled professionals to safeguard digital assets, making cybersecurity roles increasingly critical.

Blockchain Technology
Blockchain is expanding beyond cryptocurrency, offering enhanced security and transparency, which is (potentially going to be) driving demand for expertise in this technology. (Note: we see concrete increases in demand for the other three factors listed above, the scale of blockchain growth, however, is still up for debate.)

For further insights, explore our detailed discussion on technological disruptions and your career.

What Tech Disruptions Mean For Your Career

Keep in mind: Tech disruptions can feel unsettling as older technologies phase out, but they also open doors for innovation and growth…

Take the streaming revolution as an example: Blockbuster, a giant in video rentals, couldn’t keep up with Netflix’s new way of watching movies. While Blockbuster struggled to adapt and eventually went bankrupt, Netflix thrived and transformed the industry.

This same pattern will continue, primarily in the four fields we’ve outlined above. Which means, as a professional, embracing new technologies can create massive opportunities, giving you a chance to capitalize on the next big trend.

But… To do that effectively… You have to understand how hiring and skill demand works in tech…

Skills in High Demand

The tech industry is focusing on several critical skills that are driving growth and salaries.

  • AI/ML Development: Expertise in artificial intelligence (AI) and machine learning (ML) is highly sought after.
  • Data Science and Analytics: Skills in data science and analytics are essential for managing and interpreting complex datasets. This includes advanced analytics, data management, and database expertise.
  • Cybersecurity Expertise: This area has seen significant demand, with cybersecurity roles commanding higher pay due to their critical importance in protecting systems and data.
  • Cloud Infrastructure Management: Managing cloud environments is vital as businesses continue to adopt cloud technologies. Expertise in optimizing and securing cloud services is highly valued.
  • Blockchain Development: Skills in blockchain technology may become increasingly important, but we are not seeing massive demand yet.

Skill Domains Currently Driving Increased Pay in Tech

  • Cybersecurity (55%): Reflects the high demand for professionals skilled in protecting against cyber threats, with substantial salary increases due to the critical nature of these roles.
  • Cloud Computing (51%): Indicates strong demand for expertise in managing and optimizing cloud environments.
  • AI and ML (46%): Highlights the value of skills in creating and implementing AI and machine learning solutions. (Note: we predict this number will increase considerably, perhaps by an order of magnitude; the increase listed here is merely due to the early adopters.)
  • Software Development (44%): Emphasizes the ongoing need for skilled developers to build and maintain software applications.
  • Data Science and Database Management (33%): Shows the importance of skills in analyzing data and managing databases effectively (CIO).

Specific In-Demand & High Paying Tech Skills

We also find more specific and specialized skills demand as follows:

  • Generative AI: Creating new data or content using advanced AI technologies.
  • System-on-Chip (SoC) Technology: Designing integrated circuits for efficient processing.
  • Deep Learning: Utilizing neural networks to understand and model complex patterns.
  • Torch & PyTorch: Frameworks used for developing and training deep learning models.
  • Computer Vision: Enabling systems to interpret and analyze visual data.
  • SystemVerilog: A hardware description language for designing and verifying digital systems.
  • Mesos: A cluster manager for resource allocation in distributed computing environments.
  • Rust: A programming language known for performance and safety.
  • Elixir: A language for building scalable and maintainable applications (CIO).

Adaptation Strategies

OK. Great. Now you understand what skills are in high demand in tech and lead to high salaries…

What should you do?

As a professional, especially one seeking high-value jobs, you have a couple of options… Consider the following strategies – some are optional, others are mandatory:

  • Upskilling and Reskilling: Stay competitive by continually updating your skills. Focus on mastering emerging technologies and tools that are shaping the industry that we’ve highlighted above. This ensures you remain relevant rather than let go.
  • Continuous Learning Programs: Engage in ongoing education through formal programs, online courses, and workshops. Embrace learning platforms that offer training in the latest technologies and methodologies to keep your expertise current.
  • Leveraging Certifications: Obtain relevant certifications to validate your skills and enhance your credibility. Certifications in areas such as AI, cybersecurity, and cloud computing can significantly boost your marketability and career prospects.
  • Focus on Job Security: We predict that more tech jobs will be destroyed, at least in the short to medium term, than created. This means, keeping your job – and minimizing the periods of time you may be unemployed – should be top priority. (Note: if you are unemployed, stop reading this, and get your next job fast instead.)

Action Steps

  1. Be Part of a Core Team: Whether you’re a manager or a team member, make sure you’re involved in key projects and decision-making processes to stay at the forefront of industry developments, and of course, to decrease the likelihood that you’ll be let go.
  2. Adapt and Specialize: Develop expertise in the latest technologies and trends. Being adaptable and specializing in high-demand areas will make you an invaluable asset to employers.
  3. Develop Essential Skills: Focus on acquiring the Five Core Skills and Seven High Value Disciplines (Five Core Skills and Seven High Value Disciplines) to build a robust and versatile skill set.
  4. Learn The Language of Value: Understanding and articulating the value you bring is crucial. Master this to effectively communicate your contributions and align with industry demands (The Language of Value).

For further insights and strategies, we also recommend that you explore our detailed guide on future-proof jobs and career trends: Future-Proof Jobs.