November Data Science Job Market Report (2024)

October 2024 revealed significant shifts in the tech job market, with data-related positions seeing major growth and industries beyond FAANG ramping up their hiring efforts. At the same time, layoffs in the tech sector have significantly decreased, signaling a potential stabilization. Key takeaways include:

• Surge in Data Science Job Openings: The data science job market experienced a remarkable 77.8% increase in job openings in October 2024, reflecting a strong demand for professionals in data analytics, engineering, and machine learning across industries.
• Growth in Non-FAANG Hiring: While FAANG companies (Meta, Apple, Google, etc.) saw a surge in job listings, other major players like Experian, Oracle, and Walmart are also ramping up their tech hiring, highlighting the growing tech talent needs in sectors like finance, healthcare, and retail.
• Stabilizing Tech Layoffs: After a peak in layoffs earlier in 2024, October marks a significant decrease in workforce reductions, signaling a potential stabilization in the tech industry as companies adjust to new market conditions and refocus on growth in AI and automation sectors.

The data science job market experienced a dramatic rebound in October 2024, with job openings increasing by an impressive 77.8% month-over-month. This surge comes on the heels of September’s record low for the year, signaling renewed demand for data science expertise across industries.

October 2024 saw a significant resurgence in data-related job openings, with roles across the data ecosystem experiencing remarkable month-over-month (MoM) growth. Here’s how the numbers stack up:

• Data Analysts: Job openings surged by an extraordinary 125% MoM, reflecting the critical need for professionals who can turn raw data into actionable insights.
• Data Engineers: The demand for these backend specialists soared even higher, with a 156% MoM increase, underscoring the growing reliance on robust data pipelines and scalable architectures.
• Data Scientists: These versatile professionals saw an 89.2% MoM jump in demand as companies ramped up efforts to extract predictive and prescriptive insights from data.
• Machine Learning Engineers: Openings grew by 62.9% MoM, reflecting steady investments in AI-driven solutions to automate processes and enhance decision-making.

This may be partially linked to the recent interest rate cut by the United States Federal Reserve. While the broader economic impact of the cut remains mixed, its ripple effects could be incentivizing businesses to invest in data-driven initiatives to optimize operations and drive growth.

The data-related job market is not only experiencing significant growth in traditional roles like data scientists and engineers but is also seeing the emergence of specialized positions tailored to new technologies. Among these, prompt engineers—professionals skilled in designing and optimizing prompts for AI systems, particularly large language models (LLMs)—are rapidly gaining prominence.

Typically considered an entry-level role, prompt engineering offers a unique entry point for individuals looking to break into the AI and data fields. While it may not yet rival the scale of more established roles like data scientists or engineers, the position continues to grow as AI adoption increases and businesses increasingly rely on generative AI tools.

In a surprising and significant shift, job listings from FAANG companies (Facebook, Amazon, Apple, Netflix, and Google) grew by a remarkable 69.1% from September to October 2024. This surge reflects the increasing demand for talent driven by new AI and cloud technologies, with Meta and Apple recently unveiling their AI services, Meta AI and Apple Intelligence. These developments are fueling the need for specialized roles in AI, machine learning, and cloud computing as FAANG companies expand their product portfolios and compete for top talent.

Meta leads with 276 listings, followed by Google with 106, Apple with 103, Amazon with 70, Microsoft with 67, and Netflix with 66. This trend signals continued expansion in tech sectors, particularly as companies prioritize AI-driven innovations. The demand for specialized talent in AI and machine learning will remain strong through the remainder of 2024 and beyond.

Although the overall job market is showing signs of improvement, the share of job openings within FAANG companies has slightly decreased this month, now holding a 3.6% share. This decline is not alarming, as job openings within FAANG companies have actually increased overall. This shift suggests that while FAANG companies are still a dominant force, other industries are also ramping up hiring efforts.

Several non-FAANG companies are ramping up their tech hiring, with Experian, Oracle, and Walmart leading the pack. This trend reflects the growing demand for tech talent across industries like finance, retail, and healthcare. Cardinal Health, Comcast, and Confluent are also expanding their tech teams. These companies are diversifying the tech job market, signaling a broadening of opportunities beyond the traditional big players.

Tech job openings are increasingly concentrated in a variety of key industries. Technology firms lead the way, with a significant demand for skilled tech talent. In particular, retail tech has emerged as a major growth area, with companies like Walmart using cutting-edge technologies to innovate in e-commerce, supply chain, and customer experience

The financial services sector is another prominent employer of tech professionals, driven by the digital transformation of banking, insurance, and investment services. As more companies within this space adopt advanced technologies like AI and blockchain, they create numerous opportunities for technology specialists.

Healthcare also continues to grow as a tech-driven industry, especially with the increased use of data analytics and telemedicine. Tech jobs are vital for developing healthcare systems, enhancing patient experiences, and optimizing operations.

Finally, the consulting sector has seen a steady demand for tech talent as businesses rely on external expertise to navigate the digital landscape. This trend aligns with a broader push toward data-driven decision-making across all sectors.

January and February 2024 saw a significant surge in tech layoffs, with companies across the industry downsizing after the initial workforce reduction wave in 2023. This was followed by a slowed-down layoff scenario through the rest of 2024 showing a gradual decrease in both the number of companies announcing layoffs and the number of employees affected.

By October 2024, both the number of companies implementing layoffs and the total number of employees affected were at their lowest levels since the 2023 peak. This could indicate that the tech industry is reaching a point of relative workforce stability. The decline in layoffs could signal an easing of economic pressures, with companies adjusting to a “new normal” and perhaps preparing for gradual hiring in specific areas like data science and AI.

Recent October 2024 layoffs include:

1. Dropbox: Dropbox recently announced a layoff affecting 20% of its workforce, marking a significant reduction aimed at refocusing on its core priorities. This move is part of a broader restructuring strategy to adapt to evolving market conditions, with particular attention to strengthening Dropbox’s AI and automation capabilities.
2. Meta: Meta conducted another round of layoffs, affecting employees in divisions like WhatsApp, Instagram, and Reality Labs. The restructuring aims to streamline operations amid weaker ad revenue and a pivot toward building the metaverse.
3. Upwork: Upwork announced organizational changes that included layoffs to improve operational efficiency and focus on profitability. This shift is part of Upwork’s broader strategy to navigate a challenging freelance marketplace.
4. Coursera: Facing slower growth, Coursera recently laid off 150 employees, aiming to restructure and focus on sustainable growth initiatives in the online education sector.

The data science job market is showing a promising recovery as of October 2024, with significant increases in job openings across various roles, including data analysts, engineers, scientists, and machine learning engineers. This surge is reflective of an overall rebound in demand for tech talent, particularly in industries embracing AI and data-driven technologies.

FAANG companies are notably ramping up hiring in response to new AI and cloud innovations, though non-FAANG companies like Experian, Oracle, and Walmart are also contributing to the growth. While the tech sector saw a spike in layoffs earlier in the year, October marks a shift toward stability, indicating that companies are adjusting to economic pressures and refocusing on long-term growth in areas like AI and automation. The decrease in layoffs, alongside the surge in job openings, signals a positive outlook for the future of the tech job market.