Even as layoffs continue to impact the tech industry, there is still a critical shortage of skilled IT labor, according to Gartner. The report found that the demand for tech talent greatly outstrips the supply, and that will continue until at least 2026.

“Tech layoffs do not mean that the IT talent shortage is over,” said John-David Lovelock, distinguished VP analyst at Gartner. “IT spending on internal services is slowing in all industries, and enterprises are not keeping up with wage rate increases. As a result, enterprises will spend more money to retain fewer staff and will turn to IT services firms to fill in the gaps.”

The report also projected IT spend to rise 5.5% to $4.6 trillion in all regions in 2023 despite continued global economic turbulence.

“Macroeconomic headwinds are not slowing digital transformation,” Lovelock said. “IT spending will remain strong, even as many countries are projected to have near-flat gross domestic product growth and high inflation in 2023.”