Software Jobs Soar, Hardware Jobs Struggle
Employment trends in the U.S. tech sector reveal a striking divergence between software and hardware roles over the last three decades. From 1990 to 2024, software-focused areas such as publishing, streaming, social networks, and data processing have seen a steady employment growth rate of 4.6% CAGR. Conversely, hardware-based sectors, including semiconductor manufacturing and communications equipment production, saw employment cut nearly half through the 2010s and stabilized. This shift highlights the evolving focus of tech investment and talent, increasingly leaning toward software-driven innovations.
My Take
The growth in software jobs underscores the digital transformation driving demand for skilled developers, data scientists, and cloud experts. Hardware’s employment stagnation reflects its capital-intensive nature and reliance on global supply chains, where automation and outsourcing are key. The software sector’s resilience also speaks to its adaptability in shifting consumer and business needs. The sector’s employment landscape will hinge on AI and automation. Future tech employment will emphasize roles in AI, cloud, and hybrid hardware-software integration, focusing on upskilling to meet evolving demands as software growth continues and hardware shifts toward automation.
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Credit: Visual Capitalist