While 2024 saw hiring activity for tech professionals decline by 21% compared to 2023, this year is expected to see a steady improvement, with roles such as software developer and data engineer forecast to show increasing demand.
This is according to online recruitment firm Pnet, in its Job Market Trend Report for December 2024. The report was created and interpreted by the firm’s team of data insights specialists.
It is based on empirical data sourced from the Stepstone Group South Africa’s online recruitment platforms, which hold a combined database of over nine million registered users.
According to the study, slowing recruitment activity continued in November. Month-on-month local hiring activity was down by 10% from October to November 2024. The trend for the two-year comparison reveals that recruitment activity in the period decreased by 10% compared to November 2022.
However, improvement is forecast in the sector this year, with roles such as software development, systems/network administration, data analysis/data warehousing, business analysis, IT project administration/management and technical/business architecture expected to see growing demand.
Economic uncertainty, job security awareness and a shift in the tech market are the main reasons for the reduced levels of tech hiring, according to Pnet.
Anja Bates, head of data at Pnet, tells ITWeb: “While economic uncertainty may continue to influence hiring trends, certain roles are seeing growing demand, which could signal a shift in priorities rather than an overall decline.
“Recruitment focus is increasing for roles in systems/network administration, cloud computing, data skills (data engineers and scientists), business intelligence analysts, IT architects and database developers/administrators.Shifting and growing demand is also evident for IT architects, and database developers and administrators.”
According to the 2024 South Africa Report: State of the Software Developer Nation, compiled by OfferZen, hiring of SA’s software developers dropped by 5% over the last 12 months.
However, artificial intelligence and emerging technologies are expected to reinvigorate job placements in the industry, it says.
Pnet explains that the decrease in local demand for IT professionals was fuelled by the global trend of tech layoffs.
Retrenchments and job cuts by global giants in the IT sector were first announced at the end of 2022, when companies like Google, Amazon and Meta (Facebook) significantly reduced their tech staff counts, it notes.
In terms of SA’s economic uncertainty, Bates explains companies are cautious about recruitment due to global tech layoffs, rising inflation and fears of a looming recession.
“Many organisations are opting to freeze hiring or restructure instead of expanding their teams.”
Discussing the shift in SA’s tech market, Bates points out there is reduced demand for traditional roles, like IT project managers, as companies focus more on streamlining existing technologies rather than building entirely new systems.
“Despite the overall slowdown, there are emerging areas of growth in the tech sector. Companies are increasingly seeking professionals with skills in cloud computing, data analysis and IT architecture, reflecting a shift toward optimising and securing existing infrastructure rather than developing entirely new systems. These shifts highlight the changing needs and priorities of the tech industry.”
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