There’s been a lot of discussion in the news, around various tech communities, and within Code:You about the state of jobs in the Information Technology industry. This article will explore what the industry looks like in our region – namely, The Greater Louisville and Cincinnati Areas. We’ll focus mainly on what the data shows in this article, but we’ll expand and editorialize a little on what this means for Code:You students over in this article, and further what you can be doing to best manage your entry into the field in this article. 

Right now, jobs in information technology in Kentucky are driven by the continued integration of advanced technology and machinery into workflows. Research from the Brookings Institution found that over three-quarters of jobs in the US economy have a medium or high level of digitization, meaning that digital tools and skills are of significant importance for the occupation. Technology tends to increase productivity, driving wage gains for workers.

The Louisville region’s IT workforce is employed across every sector of the economy, But over half of IT workers are concentrated in three industries – Professional, scientific, and technical services, Finance and insurance, and Information. Employment in the professional services sector is dominated by Computer Systems Design and Related firms, which include the region’s largest tech employers like ComputerShare and Waystar.

Local tech workers are employed across all industries. But over half are employed in just three industries – Professional services, Finance and Insurance, and Information.

Cincinnati-area tech workers are employed across all industries. But over half are employed in just three industries – Professional services, Management, and Finance and Insurance

Relative to the nation, the Louisville workforce is heavily represented in finance and insurance, driven by Humana, one of the region’s largest employers. The current restructuring and focus of Humana has impacted demand for tech workers. Job postings for IT workers at Humana have fallen 51% over the last year.

The region’s tech workforce is also over-represented in logistics and healthcare. Logistics has dominated the economic recovery from the COVID-19 recession in the Louisville region. Healthcare is the largest and fastest growing sector in the region. The local IT workforce is underrepresented in the Information sector, and therefore might be less impacted by the major layoffs happening at the nation’s largest information sector employers. 

Compared to the US, local tech workers are overrepresented in finance and insurance.

Compared to the US, Cincinnati-area tech workers are over-represented in corporate headquarters and finance and insurance.

Local demand for IT workers increased throughout 2018 & 2019 and peaked  just before the pandemic.

But, demand for workers has fallen across the economy, not just for IT workers exclusively. This is likely the result of the economic slowing the Federal Reserve intentionally created to cool inflation. Overall, the volume of online job postings for IT workers is down about 60% compared to the first quarter of 2020.

Local demand for IT workers never fully recovered to its pre-pandemic level.

Even so, demand for IT workers and skills are not going anywhere. The nation is digitalizing at an extremely rapid rate. IT professions are projected to grow at more than double the rate of all local jobs.

---