The September jobs report shows stronger-than-expected job growth, but it may not be as concerning for inflation and interest rates as initially thought. While the bond market reacted with fears of higher rates, details such as modest wage growth and stable unemployment suggest a rebalancing labor market and cooling inflation.
According to an analysis by CompTIA, tech employment in the latest national jobs report decreased in September. Tech sector companies reduced staffing by 2,632 positions, and tech occupations across all sectors fell by an estimated 20,000. However, the tech unemployment rate remains low at 2.2%, below the national rate of 3.8%. Employer job postings for future tech hiring also declined. Demand for software positions remains high, and emerging technologies account for a significant portion of tech job postings, with artificial intelligence being the most prominent. California, Texas, and Virginia had the highest volumes of tech job postings at the state level.
And in a move to help with cyber hiring, the bipartisan Modernizing the Acquisition of Cybersecurity Experts(MACE) Act, passed by the lower chamber with a vote of 394-1, aims to modify educational requirements for federal cybersecurity positions. The bill prohibits government agencies from setting minimum educational requirements unless mandated by law in the relevant state or locality. It also requires agencies to consider an applicant’s education alongside other qualifications. It mandates the annual publication of changes to minimum qualifications and data on the education level of those in these positions. It was notably the last bill before the House recessed after the removal of the Speaker of the House.
The cybersecurity industry continues to struggle with a shortage of professionals, needing to fill 3.7 million cybersecurity jobs. Employers value hands-on experience but also emphasize the importance of soft skills. Companies are finding it difficult to retain employees and still require a four-year college degree for candidates.
And so I’ve mentioned, according to a survey by Multiverse, employers are relaxing college degree requirements but still want future employees to have skills in AI. 42% of respondents said their organization is widening hiring criteria to consider candidates without a degree, and 37% plan to adopt a skills-first approach. However, knowledge of AI is the top skill that employers want, with 72% of business leaders planning to invest in AI skills training. Workers are advised to familiarize themselves with AI tools, although most companies do not expect a college degree in artificial intelligence.
Why do we care?
The Fed is working to remove the requirement for a four-year degree. I want to give two pieces of guidance here.
For employees, your need to get a four-year degree is inversely proportional to your age. The younger you are, the more I will encourage you to get those credentials. That’s due to the long-term impact on your earnings potential and the doors it opens up to you.
But for employers, the guidance is to open the doors wider. While a unique example – in a floor debate for that bill, it was noted that Bill Gates couldn’t get hired as a cyber security expert for the US government based on degree requirements. While not every potential hire is Bill Gates, the point is easy to understand. Skills training is a piece of the puzzle, and remember, you may need to create that talent in addition to finding it on the market.