Tech Job Market in 2024: What to Expect

The past few years have been a rollercoaster for the tech industry. From the transition to remote work to the rise of AI and blockchain, it's safe to say that change is the new normal. But what does that mean for job seekers and tech professionals?

Whether you're a seasoned professional or seeking an entry-level job, staying up to date on emerging trends and skill sets in the job market is essential. This article will dive into the exciting possibilities that could soon shape the tech industry and the 2024 job market.

Introduction to the 2024 Tech Job Market

There's a high demand for IT professionals like software developers, cyber security experts, and data scientists. According to Canada Hires: there will be 80,500 more job openings due to market growth. Still, the number of new immigrants, graduates, and other job seekers is expected to exceed 89,900 and the labour shortage is likely to continue until 2031.

The Globe and Mail reports organisations are finding it challenging to hire and retain skilled employees in the following sectors:

  • Cloud computing (41%),
  • Artificial intelligence or machine learning (27%)
  • Security architects (25%)
  • IT technicians (24%)
  • Data analysis (24%)
  • Data protection (24%)
  • Security analysts (24%)

The job site Indeed also found that 13 out of 20 best jobs in Canada are in the tech sector. Some examples include data engineers, analysts, technical leads, and Android developers. While the threat of a recession looms in 2024, it's clear that technology sector employment rates remain optimistic. Now, let's look at some tech job market predictions for 2024.

Emerging tech trends and their impact on jobs

High demand for specialized skills

Artificial Intelligence (AI) and Machine Learning (ML) will continue to drive innovation across industries like healthcare, fintech, and autonomous vehicles.

Deloitte found that $2.57 billion was invested in Canadian AI research and development from 2022 to 2023. In addition, the total venture capital invested in Canada was an astounding $8.64 billion. The recent astonishing investments in AI and Machine Learning technology reflect the increasing use of AI.

Not surprisingly, there will be a demand for professionals skilled in AI algorithms, neural networks, data science, cloud computing, and natural language processing. The World Economic Forum predicts a 40% increase in machine learning and AI specialists in the next five years. Jobs in this sector are expected to pay well, with an annual salary of $82,200.

Demand for cyber security specialists

With the rise in cyber threats and data breaches, cyber security will remain a top priority for organizations. There will be increased demand for cyber security experts proficient in threat detection, ethical hacking, and risk management.

According to the Globe and Mail, Canada's Cyber security sector has 124,000 professionals but still needs 25,000 workers. As a result, local companies are offering lucrative packages and salaries to acquire top talent. Interestingly, cyber security specialists earn $42.16 per hour on average. In contrast, those with more experience earn $61.54 per hour.

Focus on mental health

With the threat of layoffs, recessions, and the coronavirus, employees have a lot of stress. Mental health has been gaining attention within the tech industry. It's likely to continue as a significant focus in 2024 and beyond as tech companies the importance of fostering supportive work environments that prioritize the well-being of their employees.

In Canada, 1 out of 5 Canadian employees experience anxiety, depression, or posttraumatic stress disorder. Additionally, 68% of those surveyed with a mental health issue report that their mental health has declined since the pandemic.

In 2024, we'll see a continuation of efforts to destigmatize mental health discussions in the workplace. Some companies are also looking into implementing wellness programs, providing access to mental health resources, and offering employee support networks.

In-Demand Skills for 2024

Staying up-to-date also means having in-demand skill sets in the industry.

Here's a look at the skills that you need to have:

Coding

Even with AI-generated code, coding is still one of the most sought-after skills in 2024. The Canada Job Bank reports predict there will be 80,500 developer-related tech jobs until 2031. It's not enough to master a single language to become a coder. Not only do you need to have proficiency in languages like Python, JavaScript, and Java—but you also need to be fluent in stacks like Ruby on Rails and LAMP. Full-stack web development, such as front-end expertise (i.e. React and Vue.js) and back-end expertise (i.e. Node.js or Django) continues to experience demand.

Agile Methodology

In the fast-paced tech realm, agility isn't just a buzzword—it's a way of life. Companies actively seek individuals well-versed in Agile methodologies to drive efficiency and collaboration in project management. Whether it's Scrum, Kanban, or a hybrid approach, the ability to work with teams across these frameworks is perceived to be a prized skill.

Data Proficiency

Data is the new gold. Many organizations need individuals who collect, interpret, analyze, and derive meaningful insights from data.

In 2024, there will be a continued demand for professionals proficient in data visualization tools (Tableau, Power BI), database technologies (SQL, NoSQL), and machine learning and AI algorithms. As companies navigate the data privacy landscape, expertise in data governance, ethics, and compliance is increasingly in demand, too.

Cyber security

Cyber security remains a top priority for businesses in a digital world threatened by hackers. Whether or not you're on the cyber security team, it's essential to understand basic security protocols and encryption methods, and following security measures is crucial.

Sector-Specific Growth and Opportunities

The tech industry has a bright future, but some sectors seem more promising compared to others.

Cyber security

Cyber threats continue to evolve, fueling the demand for Cyber security in industries across the board—finance, healthcare, and even emerging sectors like IoT.

Entry-level roles in Cyber security include Security Analysts, where employees monitor systems for breaches, which pay around $70, 713 annually. Alternatively, Incident Responders or individuals who respond to Cyber security threats are paid $86,622 annually in Canada.

If you have more experience, you can work as a Cyber Security Engineer to design robust security systems or as a Security Architect to create comprehensive security structures. The average cyber security engineer's salary is $92,012 annually, while security architects are paid $137, 962 annually.

Data Analysis

Data analysis is critical to making informed decision-making. In industries like e-commerce, healthcare, and finance—harnessing the power of data helps attract customers and increase profits. Entry-level tech jobs in 2024 in this sector are data analysts - paid an average of $61,269 per year - are responsible for cleaning, organizing, and analyzing data sets. These roles often require proficiency in tools like SQL and Excel and visualization platforms like Tableau or Power BI. Moving up the ladder, data scientists leverage advanced statistical and machine learning techniques to get predictive insights. Likewise, data engineers specialize in managing large data sets and designing scalable architectures. Data scientists earn $82, 757 annually, while data engineers earn $84, 497 annually.

Remote Work and Its Influence on the Tech Job Market

Remote work in tech has become the norm for tech companies. It's much more common for teams to collaborate seamlessly globally, opening opportunities for many professionals.

In 2023, around 20% of Canadian workers worked from home. Interestingly, 90% of Canadians believed they were more productive at home rather than when they worked in an office.

In 2024, work-from-home and hybrid work arrangements are expected to continue. After all, many employees need work-life balance.

Salary Trends and Compensation Analysis

The lucrative compensation in the tech industry is a testament to its robust growth. Here's a look at salary ranges based on tech industry hiring trends in 2024:

  • Software Engineers/Developers: Entry-level roles start at approximately $69000, with mid-level positions ranging between $79,000 to $92,000. Senior and specialized roles can command anywhere from $92,000 to over $103,000, depending on expertise and location.

  • Data Scientists/Analysts: Entry-level salaries typically range from $74,000, while mid-level positions can make $82,000 to $95,000 per year. Senior Data Scientists or specialized roles might earn between $95,000 to $104,000 or more, based on experience and industry demand.

  • Cyber security Analyst: Entry-level positions start around $60,000, advancing to $69,000 to $88,000 for mid-level roles. Senior cyber security analysts can command salaries of $98,000 or more depending on expertise and organizational needs.

Despite these tech job salary trends, it's important to remember that compensation can range based on location, industry demand and talent.

Tech hubs like Toronto or Vancouver often offer higher wages due to the cost of living. In addition, advanced skills, certifications, and years of experience can significantly impact your salary bracket.

Navigating the 2024 Tech Landscape

Looking ahead, the trends shaping the tech industry highlight the emphasis on remote work, impact of AI on tech jobs, and the importance of cyber security.

The future of tech careers seems bright. For jobseekers or professionals willing to advance their careers, embracing a growth mindset is the key to navigating the tech job market. Staying up-to-date on evolving technologies and honing technical and soft skills is essential. If you do it right, you can take advantage of many opportunities.