The global economy is threatening efforts to diversify the technology workforce, according to a study by publisher Wiley. More than half of technology executives surveyed, 62%, said the current economic environment is slowing their diversity, equity and inclusion efforts. And nearly 60% are still struggling to retain tech talent from historically underrepresented groups.

Wiley’s study, the Diversity in Tech 2023: US Report, included a survey of more than 300 senior tech executives and 1,000 Gen Z professionals. It was released last week.

Executives also reported the skills gap continued as a challenge to recruiting entry-level tech talent, and more than half of executives said they are now considering doing away with degree requirements over the next year.

However, 70% of Gen Z workers in the study said they felt uncomfortable at work because of their gender, race, ethnicity, socioeconomic background, neurodevelopmental condition or disability. This is up nearly 20 points from last year’s survey — contributing to the retention challenge many companies face.

“Despite the uncertainty in the market today, businesses would be wise to prioritize and expand efforts to diversify their tech teams and create more inclusive workplaces,” said Todd Zipper, executive VP and general manager at Wiley.

“Diversity fosters innovation and opportunity,” Zipper said. “It’s especially important to provide a more level playing field for entry-level tech roles, widening the aperture of access to qualified candidates of all backgrounds.”

The study also looked at remote work and the skills mismatch.

A large majority of executives, 94%, said hiring of remote workers had helped increase the diversity of job candidates, and 34% said they are offering flexible working policies to attract underrepresented applicants to open positions. However, 62% said remote roles are more at risk for layoffs in the current economic environment.

Sixty percent of tech executives noted a gap between candidates’ tech skills and the company’s requirements for entry-level positions despite candidates holding a relevant college degree.

Further, 58% of companies are now considering dropping degree requirements for certain roles over the next year, and 25% are expanding job qualifications in place of degree requirements specifically to increase the diversity of qualified applicants.