The IT market in 2024 has proven to be challenging for beginners. For those considering a career as a programmer, especially in 2024, it’s likely they’ve heard about the weakening IT market, both domestically and internationally. This sentiment is intensified by news of “layoffs,” where companies conduct mass layoffs, leading many to believe that the market is “cooling off.”
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IT Market Situation in 2023
In 2023, the internet was flooded with information about layoffs, and many developers confirmed the difficulty of finding new positions. Some accepted lower salaries and worse working conditions. To understand this scenario, it is crucial to examine the numbers. According to the site layoffs.fyi, in 2023, 1,192 tech companies across all sectors conducted layoffs, resulting in more than 260,000 people being laid off worldwide. Among these companies, the biggest ones, the so-called “bigtechs,” stand out:
- Amazon: 28,000 layoffs
- Google: 13,000 layoffs
- Meta (Facebook): 22,000 layoffs
- Microsoft: 14,000 layoffs
These mass layoffs flooded the market with highly qualified professionals who faced difficulties finding new positions with equivalent or higher salaries. This situation generated a feeling of pessimism among tech professionals.
IT Market in 2024
By August 2024, layoffs had already resulted in more than 100,000 dismissals. Although this number doesn’t seem very promising compared to 2023, it’s important to consider the complete picture. Since 2022, there has been a constant increase in hiring, which has recently started to decline. This means that the market is laying off fewer people because it is hiring fewer people. Many people don’t realize that there are still many opportunities available.
According to The Wall Street Journal, in 2022, just in U.S.-based companies, 270,000 new jobs were created in the tech field. In 2023, this number drastically fell to 700. Even so, the number of layoffs did not surpass the number of hires. This suggests that despite the layoffs, the market is still absorbing tech professionals, albeit at a slower pace.
One of the main reasons for the layoffs was cost-cutting. This led to an increase in hiring outsourced labor. With the spread of the remote work culture, many companies realized they could hire professionals from anywhere in the world more quickly, with less risk, and at lower costs. This phenomenon explains the progressive increase in IT professionals working for companies outside their countries of residence.
Opportunities in the Technology Market
Despite the challenges, there are still many opportunities in the tech market. The demand for specific skills, such as software development, data analysis, cybersecurity, and artificial intelligence, remains high. Companies in various sectors are seeking professionals with these skills to drive their digital initiatives.
Additionally, the flexibility of remote work has opened new possibilities for tech professionals. Many developers are exploring freelance opportunities or short-term contracts with international companies. This allows them to diversify their income sources and gain experience in different projects and corporate cultures.
Another emerging trend is the rise of startups and small tech companies. These ventures often seek talent to help them grow and innovate. Tech professionals willing to work in dynamic and challenging environments can find excellent opportunities in startups.
Rising Technology Areas
With the constant evolution of technology, some areas are gaining prominence and promise to remain in demand in the coming years:
- Artificial Intelligence (AI) and Machine Learning (ML)
- AI and ML are revolutionizing various sectors, from healthcare to finance. Applications like image recognition, natural language processing, and recommendation systems are becoming more common. Professionals with AI and ML skills are highly sought after to develop intelligent algorithms and autonomous systems.
- Cybersecurity
- With the increase in cyber threats, digital security has become a priority for companies of all sizes. Cybersecurity experts are needed to protect sensitive data, identify vulnerabilities, and implement robust solutions to mitigate risks.
- Cloud Computing
- The adoption of cloud-based solutions continues to grow, driven by the need for scalability, flexibility, and cost reduction. Professionals with expertise in AWS, Azure, and Google Cloud are highly valued to design, implement, and manage cloud infrastructures.
- Software Development and DevOps
- Software development remains a crucial area, with the demand for efficient and scalable applications increasing. The integration of DevOps practices is becoming essential to improve collaboration between development and operations teams, speeding up software delivery.
- Blockchain and Cryptocurrencies
- Blockchain technology is revolutionizing sectors like finance, supply chain, and intellectual property. Developers with knowledge in blockchain and cryptocurrencies are sought after to create secure and transparent solutions.
Technology Market for Beginners
For those starting a career in technology, the landscape may seem intimidating but also full of opportunities. Some strategies can help beginners stand out:
- Education and Certifications
- Investing in formal education, such as university courses in Computer Science, can provide a solid foundation. Additionally, obtaining certifications in specific areas, like AWS Certified Solutions Architect, Certified Information Systems Security Professional (CISSP), or Google Professional Data Engineer, can increase employability.
- Personal Projects and Portfolios
- Developing personal projects and creating a portfolio is an effective way to demonstrate practical skills. Contributing to open-source projects can also provide valuable experience and visibility in the industry.
- Networking and Community
- Participating in tech events, meetups, and conferences can help build a network of professional contacts. Engaging in online communities, like forums and discussion groups, can provide support and learning opportunities.
- Internships and Work Experience
- Seeking internships or entry-level positions in tech companies can provide practical experience and open doors to future opportunities. Many companies offer internship programs that can lead to permanent positions.
- Continuous Learning
- Technology is constantly evolving, and it’s crucial for professionals to stay updated with the latest trends and tools. Participating in online courses, workshops, and reading specialized publications can help keep skills sharp.
Unemployment vs. Gig Economy
Many professionals have also discovered that it is possible to earn much more than conventional jobs, and with much better quality of life, by dedicating their time to punctual projects and betting on work volume. For many people, it is more enjoyable to take on several small projects, without having to adhere to a schedule or attend meetings, than to work regularly for a company. Others have found great sources of income by creating small products on their own, whether small applications, websites, etc. This trend is called the Gig Economy.
For many, this sounds like freelancing, and it is, but while freelancing is just a working relationship, the Gig Economy is more like a lifestyle. Professionals are more focused on accumulating digital assets, consisting of small applications that each earn a little monthly revenue securely, than investing in a traditional career. This trend has been mainly adopted by Generation Z.
Conclusion
Although the tech market has faced significant challenges in recent years, opportunities still exist for those willing to adapt and evolve. The mass layoffs of 2023 created a competitive landscape but also opened new possibilities for tech professionals seeking flexibility and a diversity of projects.
In 2024, the tech market continues to offer valuable opportunities, especially for those who stay updated with industry trends and invest in their professional development. Adaptability, continuous learning, and a willingness to explore new forms of work will be essential for success in this dynamic field.
Therefore, if you are thinking about becoming a programmer or are already in the tech field, don’t be discouraged by the news of layoffs. Instead, see this as a time of transition and opportunity to grow and stand out in a market that remains fundamental to the future of the global economy. Proper preparation, skill development, and exploration of new emerging areas can open doors and provide a rewarding and successful career in the tech sector.
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