The World Economic Forum released an encouraging report for anybody interested in a career as a data analyst. They stated that data analytics will be the fastest growing profession over the next decade. This report is consistent with statistics compiled by IBM. Big Blue said that around 700,000 new data scientist and data engineer jobs will be created by the end of next year.
These types of economic forecasts tend to be reasonably accurate. However, it is difficult to cite them with exact precision. A number of conflating factors could reduce or increase the demand for data analytics jobs in the foreseeable future.
Here are some of the factors that could impact future demand for this rapidly growing profession.
A shortage of skilled data professionals could temper demand
Supply and demand for big data professionals is a two-way street. If there is a shortage of people willing and able to fulfill the job requirements, then demand could also stagnate.
Why would this occur? If new startups can’t attract reliable data professionals, then they may have to fold. This could lessen the number of big data startups, which in turn would cause the demand for entry-level big data analytics service jobs to decline.
The outlook is not set in stone, but there are valid reasons to be concerned that a shortage of skilled data professionals could threaten the market. According to a report by PwC, the average time that it takes a company to fill a data professional job is 90 days. This is twice as long as the average for all jobs requiring a bachelors in arts degree or graduate degree in the workforce.
Finding data professionals with sufficient expertise to fulfill specific needs is even more challenging. The PwC report states that many employers are looking for data professionals with more holistic skillsets, including creative thinking and communication skills. They have trouble finding these employees, which makes it more difficult for them to realize their ROI goals. This could also limit the demand for these jobs if employers aren’t satisfied with the results.
The rate of growth of the IoT
The Internet of Things (IoT) is one of the most impactful technology trends in the 21st-century. Gartner estimates that the revenue that will be generated from IoT devices all over the world will exceed $300 billion by the end of next year.
IoT advances have been made possible due to the application of big data. Big data has played an important role in designing new smart devices and storing consumer data to bolster performance.
The growing importance of IoT is one of the biggest reasons that the demand for data scientists is rising. If the IoT infrastructure plays an even more important role in our future economy than Gartner forecasts, then the demand for data scientists will be greater than IBM and other organizations anticipate.
Calls for regulatory frameworks
Last month, Elizabeth Warren called for stricter regulation of technology companies in Silicon Valley. Many pundits pointed out that major tech companies have largely escaped the scrutiny of regulation.
The likelihood of a new regulation seems virtually inevitable. The question for aspiring data scientists will be what the implications will be for their future employment.
That is a difficult thing to predict. However, if I were to venture a guess, I would say that regulation in the technology sector would likely increase the demand for data scientist jobs more than reduce it. Why would expanding the regulatory framework for the technology industry increase the need for data analysts and data engineers? It would require organizations to retain more records for compliance purposes. They would also need to continually develop more effective encryption and security tools, which also require the contributions of data professionals.
Many factors affect the outlook for data professional jobs
Numerous experts agree that the demand for data engineers and data analyst is growing faster than any other profession. However, making exact estimates for the number of jobs that will be needed is clearly more difficult. There are a number of different trends that are going to shape the market for this profession. We will need to see the figures as time progresses.
