IT employment added 4,400 jobs in January after contracting for 23 consecutive months, according to an analysis by TechServe Alliance, a trade association representing the IT and engineering staffing and solutions industry.

“While one month does not make a trend, the TechServe IT Employment index posted its first positive number in almost two years,” Mark Roberts, CEO of TechServe, said in a press statement. “While we saw significant month-over-month contraction beginning in the second half of 2022 and continuing through the spring of 2023, the declines began to moderate during the second half of the year.”

IT employment numbers over the past few months have been effectively flat, Roberts said, and the first actual uptick in IT employment in nearly two years is cause for optimism.

Still, despite the good news, it is important to remember that we are not yet in an environment that will “lift all boats,” Roberts said. “Certain tech companies continue to temper their hiring given the over-hiring during the pandemic. Other sectors of the economy are signaling renewed strength and recovery.  While challenges persist, this month’s data echoes a narrative of resilience and gradual progress within IT employment.”

On a year-over-year basis, IT employment fell by 66,700 jobs in January to total IT employment of 5.3 million.

The TechServe Alliance also reported engineering employment rose by 7,300 jobs in January for a total of more than 2.8 million jobs. Year over year, the number of engineering jobs increased by 55,500.