Q3 2024 Business-to-Business Software Sector Labor Market Summary: Anticipating a Persistent Slowdown in Recovery

The job market in the Business-to-Business (B2B) sector has been experiencing some notable changes, with wage growth and pay transparency taking center stage.

According to recent data, wage growth in the Software Development sector within the B2B vertical has picked up, climbing one percentage point in the last six months. However, job postings for software developers in this sector have declined by 11.1% over the past year and are currently almost 33% below pre-pandemic levels.

On the other hand, the Construction sector in the B2B vertical stands out for having the highest share of pay-transparent job postings compared to the overall national average. Despite some sectors in the B2B vertical lagging behind in pay transparency compared to the overall labor market, pay transparency is increasing in the B2B vertical overall.

Interestingly, pay transparency increased over the past year in all B2B sectors except Construction. This trend is reflected in the US Indeed Job Posting Index (JPI), which as of Oct. 18, was 10.8% above pre-pandemic levels, despite a 13% decrease from the previous year. The US JPI showed signs of stabilization over the summer, with a tight range between 10% and 13% above pre-pandemic norms.

In the Insurance sector, job postings declined only 3.5% over the past year and remain 32% above pre-pandemic levels. However, there was no mention of job postings in the Insurance sector or Software Development sector in the B2B vertical in the current paragraph.

The automotive supplier industry in Germany has faced significant challenges, including job cuts due to declining profit margins, while software development, especially for electric and autonomous vehicles, has gained importance and investment has increased. This difference in employment situations between the automotive supplier industry and the software development sector was particularly evident between April 2023 and October 2024.

In September, 57.8% of job postings in the B2B vertical featured information on wage or salary. Wage growth in the Education & Instruction roles in the B2B vertical was 4.6% year-over-year in September, above the labor market average of 3.3%.

Despite the stabilization of the US JPI in the B2B vertical, some employers in this vertical may still face less competition when looking to make hires. The consistent decline in job postings that began in early 2022 in the B2B vertical showed signs of leveling off in Q3 2024.

In conclusion, while the B2B job market is showing signs of stabilization, there are still differences between sectors and regions. Employers in the B2B sector may need to adjust their hiring strategies to account for these trends and remain competitive in the job market.

Q3 2024 Business-to-Business Software Sector Labor Market Summary: Anticipating a Persistent Slowdown in Recovery