2024 Election: What’s at stake for the technology job market

Technology and Politics may seem worlds apart, but every four years they intersect…

With the 2024 US presidential election just days away on November 5, anticipation is building around the potential impact on the economy and workforce. So far, it’s too close to call, and the stakes are high. The outcome—whether Donald Trump or Kamala Harris comes out on top—could shape the policies that will cause ripple across industries, but what could it all mean for the technology sector?

Historical Impact of the Elections

Historically, the US presidential elections have often had far-reaching effects on the tech job market, influenced by each administration’s policy priorities.

Clinton

The Clinton administration’s tech-friendly policies in the 1990s played a role in fueling the early internet boom, leading to a surge in job creation within software development and IT services.

Obama

Later, during the Obama administration, policies favoring green energy and digital transformation spurred demand for tech roles focused on clean energy, data analysis, and cloud computing, reshaping the job market in response to federal initiatives.

Trump

More recently, shifts under the Trump administration emphasized deregulation and tax reform, which encouraged capital investment in emerging technologies and prompted many tech firms to scale hiring.

Biden

Meanwhile, the Biden administration’s emphasis on cybersecurity and infrastructure has continued to push demand for roles in cybersecurity, AI, and digital infrastructure, as federal spending prioritizes these areas.

Each election has set in motion policies that directly and indirectly shape the tech workforce.

A Snapshot of the Current Job Market

According to EY, October’s job report offers a mixed picture of the labor market, revealing an unemployment rate expected at a historic low of 4.1%, the lowest pre-election level in 24 years. Yet, job growth remains slow, impacted by factors like recent labor strikes and hurricanes. This contrast shows how complicated the economy is right now: there are a lot of jobs available, but the overall growth is weak. This situation could change a lot depending on the outcome of the election.

The Tech Industry’s Stakes in the Election

EY’s recent survey of 500 tech industry leaders shows a clear consensus: the election’s outcome will impact key areas like AI regulation, data protection, innovation, and global competitiveness. The tech industry’s growth increasingly depends on policy stability and support in these areas, and the differing ideologies of the candidates could bring contrasting regulatory landscapes for the sector.

Policy Shifts and Tech Priorities

Different administrations have different priorities when it comes to technology and innovation. An administration that emphasizes cyber security or digital infrastructure might drive demand for tech professionals with expertise in these areas.

On the other hand, a focus on deregulation or budget cuts could slow down government-funded tech projects, and in-turn affect job opportunities in sectors which rely on public funding.

Investment and Innovation in AI

AI continues to be a top investment priority for tech companies, regardless of election results. However, tech industry leaders say that while they plan to increase AI investment in the next 12 months, the outcome of the election and the policies set forth by the next administration could play a significant role in determining the scale and growth pace of AI innovation. Regulatory clarity could either boost confidence for companies looking to raise capital in 2025 or potentially dampen investment momentum if regulatory restrictions tighten.

What’s Ahead for 2025 and Beyond

After a sluggish 2024, the tech market is anticipated to rebound in 2025, with a focus on capital-raising and investment in emerging technologies like AI. However, broader fiscal, tax, tariff, and anti-trust policies will be critical, potentially influencing everything from job creation to tech hubs’ growth across the country.

Key Takeaways for Tech Professionals

Adaptability

Election years can quickly impact the tech job market by shifting hiring priorities, it’s essential for tech professionals to be adaptable. Keeping up with political developments and their potential impact on the tech industry can help you anticipate changes in demand and adapt your career path as needed.

In-demand skills

Identifying which skills are most likely to be in demand and developing these skills can provide job security, regardless of the political climate. Areas such as cybersecurity, cloud computing, and data analytics have consistently shown resilience and growth even during periods of political uncertainty.

Stay informed

A new administration may bring new regulations that could impact tech roles, especially around data protection and compliance. Staying updated on potential policy shifts helps candidates anticipate and prepare for roles that may require specialized knowledge in these areas.

Final Thoughts

Although each candidates’ views on the economy differ, they share a common stake in preserving the US as a major player in tech. The results of this election will likely influence the tech job market, key regulation, and the broader economy in ways that could create new opportunities or challenges for tech talent and businesses.

No matter the result, our advice to professionals and businesses remains the same – Stay focused on your goals, continue building your skills and networks, and maintain a proactive approach to your career and hiring strategies.