October Data Science Job Market Report (2024)

The October 2024 Job Market Report reveals notable hiring trends and company dynamics shifts. Below is a summary of the key insights:

• In September 2024, job openings declined sharply, falling by 16% month-over-month and 35% year-over-year, with data roles like Data Analysts and AI Engineers particularly affected. In contrast, Software Engineering and Data Engineer positions saw significant growth.
• Although overall job openings decreased, FAANG companies increased their share of total listings, indicating a shift in the job landscape.
• Despite the overall decrease in job openings, layoffs dropped significantly by 583% month-over-month, which may have contributed to the decline in job openings since there are fewer roles to replace.

Total job openings in data jobs dropped considerably in September 2024, down 16% from the previous month and 35% year-over-year. This marks a departure from the trends seen in 2023. Since peaking in January 2024, job openings have generally declined, with brief rebounds in April and June.

In contrast, the overall U.S. job market appears to be on an upswing, supported by a slight decrease in the unemployment rate in September 2024.

Key data roles, including AI Engineers, saw significant declines in job openings, with AI Engineer roles dropping by nearly 65%. Other roles, such as Data Scientists, Data Analysts, and Machine Learning Engineers, also faced steady declines, continuing a trend that has persisted for the past two months.

On a more positive note, Software Engineering job openings rebounded by 23.8% in September, adding nearly 10,000 positions compared to August. Similarly, Data Engineer roles grew by 14.6%, recovering from the previous month’s decline. Business Analyst and Business Intelligence roles also saw growth, offering strong opportunities for those seeking to pivot into these fields.

Despite the downturn in data roles, these trends reflect an evolving demand within the tech industry, highlighting the importance of adaptability in navigating the current job market.

Additionally, the Federal Reserve’s half-point interest rate cut in mid-September may help spur hiring in the coming months by reducing borrowing costs for businesses. This marks the first rate cut since the early days of the pandemic and could stimulate economic activity and further stabilize the labor market.

September 2024 saw significant declines in job openings across both FAANG and non-FAANG companies. FAANG companies experienced a 16.2% drop, while non-FAANG companies saw an even steeper 24.2% decline.

However, FAANG’s share of total job openings continued to rise, indicating a shift in the job market. FAANG companies’ share grew from 3.4% in August to 3.8% in September, contrasting with 2023, when their share dipped slightly during the same period.

This trend suggests a renewed focus on data-driven initiatives among FAANG companies, potentially pointing to a broader economic recovery within the tech sector. The upcoming report in November will be crucial in assessing whether this growth continues.

In September 2024, the staffing and recruitment industry led in job openings, accounting for 20% of all listings. The financial services and information technology sectors followed, both surpassing 1,000 job postings. Other key sectors, including professional services, job search platforms, and automotive, contributed significantly to the market.

The staffing and recruitment industry is projected to grow to $207 billion by end of 2024, as evidenced by the increase in job openings. This growth suggests not only expansion within the industry but also a rising demand from various sectors to outsource their talent. It’s important to note that some companies directly employ the staff they outsource to other organizations. This trend indicates that the uptick in hiring may be driven by the needs of other industries looking to leverage staffing and recruitment companies for their talent needs.

Retail (4th on the list) is ramping up hiring to prepare for the upcoming holiday season, with most roles focused on fulfillment and logistics. However, job seekers can also expect opportunities in data-related positions, particularly in areas like supply chain management and logistics optimization, as retailers increasingly rely on data insights to streamline operations, manage inventory, and enhance delivery efficiency.

Capital One topped the list of companies with the most job openings in September 2024, followed closely by Walmart and the Department of Treasury. Capital One, representing the financial services sector, ranked second overall in job openings. Notable contributors to the staffing industry included Insight Global, Saxon Global, and Diverse Lynx.

Despite leading the hiring list this month, Capital One may reduce its hiring in the coming months due to its impending merger with Discover. As the company shifts its focus toward internal restructuring, it has announced plans to prioritize retaining existing employees from both firms, which may slow new hires as they integrate operations and streamline roles.

Walmart, which ranked second, has continued to experience sales growth during the quarter, which could explain its increase in hiring, particularly with the upcoming holiday season. Meanwhile, Amazon also made headlines, seeking to fill over 500 positions in September. This hiring initiative aligns with the company’s return-to-office policy, indicating a potential shift in workforce strategy.

Interestingly, the Department of Treasury has ramped up its hiring efforts, largely due to the increasing integration of AI and process optimization within its operations.

Layoffs slowed significantly in September 2024, in stark contrast to the massive cuts seen in August. While over 25,000 employees were laid off in August, only about 3,700 were affected in September—a massive 583% month-over-month decrease and a 25% year-over-year decline.

Key layoffs from September include:

• Microsoft: Cut 650 positions in its video game division in Seattle, following a larger round of 1,900 layoffs earlier this year.
• Udemy: Laid off 280 employees in the Bay Area but plans to rehire half of these roles in lower-cost regions.
• ChargePoint: Reduced its workforce by 15%, cutting 250 jobs to streamline operations and improve efficiency.

The October 2024 Job Market Report highlights a transforming landscape in the tech and data science industries. While overall job openings have declined, particularly in data-related roles, Software Engineering and Data Engineering positions have shown growth. FAANG companies have increased their share of total job listings, demonstrating resilience in a challenging market.

The significant decrease in layoffs suggests a move towards market stabilization, even as hiring slows. Sectors such as staffing and recruitment, financial services, and retail are showing notable hiring activity, with companies like Capital One, Walmart, and Amazon leading in job openings.

Looking ahead, job seekers should remain adaptable, focusing on in-demand skills and exploring opportunities in growing sectors. The Federal Reserve’s recent interest rate cut could stimulate hiring in the coming months. As we approach the end of 2024, monitoring these evolving trends will be crucial for both job seekers and employers in navigating the dynamic tech job market.