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5/10/2023 9:00:00 AM
Anthony Schaffhauser
Recent news of layoffs at U.S. companies well-known for their computer technology include Amazon, Meta (parent company of Facebook and Instagram), Microsoft, Alphabet (Google parent), Zoom Video, Dell, Spotify, and PayPal. News coverage of high-profile layoffs describe them as a reset from massive hiring during the pandemic to support remote work, e-commerce, and at-home socializing and entertainment. However, as these so-called "tech companies" cut costs, not all of the layoffs are computer jobs, also hitting sales and office occupations. Besides, computer occupations are found in all industry sectors, labor markets are still extremely tight, and tech workers remain in high demand nationwide and in Northwest Minnesota.
According to DEED's Occupational Employment & Wage Statistics, computer occupations account for roughly 1.1% of Northwest Minnesota's total employment. Table 1 lists the specific occupations that are recognized by the Occupations in Demand Tool. In addition to being occupations in demand in Northwest Minnesota currently, these also have many projected openings relative to the number currently employed. Furthermore, the median wages for all of these are above the median for all occupations of just over $45,000 in Northwest Minnesota, with much higher wages for those requiring a Bachelor's degree (see Table 1).
| Table 1: Northwest Minnesota In-Demand Computer Occupations | ||||
|---|---|---|---|---|
| Occupation | Estimated Current Employment | Median Annual Wage | Projected 2020-2030 Openings | Education Requirements |
| Computer User Support Specialists | 500 | $56,923/yr | 417 | Vocational training |
| Software Developers & Quality Assurance Analysts & Testers | 60 | $77,563/yr | 475 | Bachelor's degree |
| Computer Network Support Specialists | 400 | $71,089/yr | 177 | Associate's degree |
| Computer Systems Analysts | 180 | $84,509/yr | 330 | Bachelor's degree |
| Network & Computer Systems Administrators | 230 | $85,992/yr | 143 | Bachelor's degree |
| Web Developers & Digital Interface Designers | 70 | $49,837/yr | 272 | Associate's degree |
| Database Administrators | 30 | $80,101/yr | 77 | Bachelor's degree |
| Database Architects | 20 | $83,678/yr | 77 | Bachelor's degree |
| Information Security Analysts | 40 | $97,859/yr | 22 | Bachelor's degree |
| Computer Programmers | 50 | $92,124/yr | 90 | Bachelor's degree |
| Computer Network Architects | 30 | $89,068/yr | 15 | Bachelor's degree |
| Source: DEED Occupations in Demand | ||||
So, are the high-profile layoffs by tech companies an emerging trend that has yet to sweep across the country? There is no indication of that. The industry sector with the largest percentage of computer occupations is Professional, Scientific & Technical Services, with over 35% of U.S. computer occupations. U.S. employment in this sector grew 4.1% from April 2022 to April 2023, according to Current Employment Statistics from the Bureau of Labor Statistics. Yet, many companies in this sector are less commonly known than the large consumer-focused companies that have made the widely reported layoffs.
Table 2 displays employment for Northwest Minnesota's top two computer technology detailed industries, as well as employment growth compared to Minnesota statewide. Minnesota employment has been growing in these specific industries, and the growth has been even faster in the Northwest. While there are a small number of jobs in these two industries in Northwest Minnesota, adding a combined 114 more jobs in just one year is a substantial percentage increase.
| Table 2: Northwest Minnesota Computer Technology Specific Industry Employment | ||||
|---|---|---|---|---|
| Industry (NAICS Code) | Employment | Percent Change | ||
| 2021 | 2022 | Northwest | Minnesota | |
| Computer Systems Design and Related Services (5415) | 453 | 550 | +21.4% | +4.3% |
| Data Processing, Hosting, and Related Services (5182) | 47 | 54 | +14.9% | +11.2% |
| Source: DEED Quarterly Census of Employment & Wages | ||||
The industry analysis in the table above highlights the industries with the largest share of computer occupations. However, there are small percentages of computer occupations employed in all of the largest Northwest industry sectors as well. An estimated 2.3% of Health Care & Social Assistance sector jobs statewide are computer occupations. Applying that to Northwest, that amounts to over 1,300 computer occupations in this sector, which is the Northwest's largest. For Manufacturing, which is Northwest's second largest sector, 9.5% of jobs are computer occupations.
Clearly the large industry sectors are a more substantial employer of computer occupations. This means that cost-cutting in any one specific industry is not going to stifle the overall demand for these occupations. This also means that there are a variety of opportunities for computer professionals, whether one wants to work in health care, manufacturing, finance, education, or public service, among other industries.
Contact Anthony Schaffhauser at anthony.schaffhauser@state.mn.us.
