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The IT sector added only 700 new jobs last year, a massive decline from 2022’s total of 267,000 jobs, reports The Wall Street Journal (subscription).

What’s going on: “Job losses in the first half of 2023, including layoffs at technology-driven companies that dominated the period, hurt overall hiring for tech jobs in all industries, said Victor Janulaitis, chief executive of consulting company Janco Associates.”

• Cybersecurity, AI and data science were all sources of job growth in 2022 and 2023, but some functions, such as payroll management, are being taken over by software.
• Meanwhile, new developments in AI have depressed the market for entry-level IT hires, as these roles’ functions can be automated more easily as well.

On the plus side, the sector did see a small rebound in the fourth quarter, adding 21,300 new jobs.

Chips ahoy: Semiconductor manufacturing firms are another expected source of growth, as they seek to beef up domestic production.

• “Hiring in tech manufacturing, especially in semiconductors, also ticked up by about 1,600 jobs last month, CompTIA found. The chip industry, which was in a prolonged slump, has largely recovered due to factors like demand for AI.”