Dive Brief:
- AI-related job postings have weathered a broader contraction in tech talent demand, according to a recent Indeed analysis. The company reviewed tech role postings on its jobs board from 2020 to date for the report.
- Employer demand for AI/ML engineers soared by 334% since the beginning of 2020, making it the second fastest-growing tech job on the site, according to the company's analysis. Machine learning engineers, another staple position of AI development, also remained in high demand, with postings up nearly 60% since 2020.
- Roles related to AI bucked a sectorwide trend, according to Indeed. Overall tech job postings on the site rose significantly through 2022 but have since fallen 36% from their 2020 levels.
Dive Insight:
The tech job market grew significantly in 2021 and 2022, with unemployment among IT positions sliding to record lows. A boom and bust cycle ensued, as 2023 saw tech companies lay off thousands of workers.
Tech job postings never fully recovered, according to the Indeed analysis.
"Two main explanations have been offered for the crash in demand for tech workers," said Brendon Bernard, economist at the Indeed Hiring Lab, in the report. "One is that the sector is experiencing an overhang from its earlier hiring boom, aggravated by less supportive economic conditions… The other candidate is that the recent AI revolution has significantly reduced interest in hiring new tech workers."
The broad enterprise AI adoption push accelerated the targeted hiring of specialist positions. By contrast, roles like software developer have contracted nearly 49% since the pandemic, according to Indeed.
Alongside a more dynamic hiring market, candidates for AI-focused roles also enjoy higher average salaries. AI-savvy IT professionals can expect an 18% salary boost compared with their counterparts, according to Dice data from earlier this year.
"Strong demand for AI-related tech titles is also reflected in their pay," Bernard said. "Posted annual salaries for jobs like machine learning engineer (2024 median of $260,000) often rank among the highest of common tech jobs."
