Data Analyst Job Outlook 2023: Job Market Research

The increasing reliance on big data and predictive analytics to drive business growth has made the data analytics career very popular in recent years.

But will the demand for data analysts continue to grow? And what is the best way to gain a competitive edge in an increasingly competitive job market?

We analyzed 1,071 data analytics job postings on LinkedIn to uncover the most sought-after skills, techniques, and degrees and the job market’s state in 2023. Our findings provide insight into the data analyst job outlook and how to get into the field.

The Data Analyst Job Outlook: Key Findings

15% of data analytics job offers are in IT services and consulting.
The most significant number of analytics job ads in the US are in New York.
SQL and Python are the most sought-after techniques for data analysts.
54% of employers list Excel as an essential skill for data analytics roles.
The top three degrees for data analysts are computer science, statistics, and engineering.

The Data Analyst Job Outlook in 2023: Table of Contents

Methodology
What Does a Data Analyst Do?
Where Do Data Analysts Work?
How to Become a Data Analyst
How Much Do Data Analysts Make?
What Is the Job Outlook for a Data Analyst in 2023?
Starting a Data Analytics Career

Methodology

Our initial search for data analytics jobs generated 1,071 results. Since we aimed to solely analyze the data analyst job outlook, we excluded irrelevant results, such as business analyst or data engineering positions. All findings below are based on the remaining 996 data analyst offers extracted from LinkedIn in December 2022.

What Does a Data Analyst Do?

Data analysts’ primary job is to collect and interpret data, identify trends and patterns, and provide valuable insights based on the results. Those working in a business context have another crucial role—communicating the findings to stakeholders and enabling data-driven decision-making.

Using statistical methods and data visualization tools is inseparable from any data analyst role. Still, the data analyst’s job requirements vary depending on the company’s goals, size, industry, and primary function.

So, our research features the top hiring companies, industries, and locations to provide a comprehensive overview of the data analyst job outlook.

Where Do Data Analysts Work?

Big data has penetrated most industries, and the demand for data analysts has increased. Still, the role is more sought-after in certain companies and businesses than others.

The 996 data analyst positions in our study were posted by 620 companies across 198 industries and 45 states. Let’s examine the ones with the most job offers.

Companies with the Most Data Analytics Job Offers

First, we order the top 10 firms by their number of data analyst job openings.

Diverse Lynx – a staffing and consulting firm
Insight Global – a staffing and services company
TELUS International – IT and customer service provider
Launch Potato – a digital media company
Principal Financial Group – a financial products and services provider
PayPal – a digital payment platform
TalentBurst – a workforce management solutions provider
Robert Half – an employment agency
Balyasny Asset Management LP – a global investment firm

We also encountered big names like Dice (five job ads), Uber (two job ads), Excel™, Bloomberg, Tesla, and Nestlé (with one job ad each).

Industries with the Most Data Analytics Job Offers

During our search, we encountered job offers across 198 industries. We selected the industries with the most openings at the time.

IT Services and IT Consulting, 148 jobs
Software Development, 105 jobs
Staffing and Recruiting, 91 jobs
Technology, Information, and Internet, 54 jobs
Hospitals and Health Care, 35 jobs
Higher Education, 28 jobs
Financial Services, 28 jobs
Business Consulting and Services, 27 jobs
Investment Management, 20 jobs

Data analyst positions were available in other sectors—insurance, defense, retail, government administration, banking and financial services, and human resources. But each accounted for less than 2% of all offers.

Locations with the Most Data Analytics Job Offers

Our data analyst job search was limited to the US. Still, 11 offers from other countries appeared in the results and were included in the analysis. In addition, 107 US-based positions did not specify the exact location in the ad.

The remaining offers are displayed on the map with the respective number of openings per state.

The cities with the most job offers include:

Location	Number of Offers	Percentage of All Offers
New York, NY	47	4.7%
Chicago, IL	27	2.7%
Charlotte, NC	22	2.2%
Atlanta, GA	21	2.1%
Washington, DC	18	1.8%
Los Angeles, CA	15	1.5%
Austin, TX	15	1.5%
Boston, MA	15	1.5%

How to Become a Data Analyst

The data analyst job outlook is promising. But with the growing demand for qualified professionals, employers’ requirements are also increasing.

What does it take to land a job in the field in 2023?

Data Analyst Education Requirements

A career in analytics requires solid technical skills and theoretical knowledge, but is a data analyst degree the only way to obtain them?

Our findings reveal that a data analyst major is not on employers’ lists of preferred education. Most job ads mention higher-level education in related fields like computer science, statistics, mathematics, data science, and other subjects that involve working with data.

Even if you lack formal data analyst education, you can still find a job in the field. You may need to start as an intern, but once you build your skills and gain experience, you’ll quickly climb the ladder.

A comprehensive online course can help you learn the fundamentals and prepare a job-winning resume. Our Data Analyst Career Track covers all essential topics and teaches the necessary skills you need on the job.

Data Analyst Skills Requirements

Data analysts must possess strong technical, analytical, and visualization skills. But the rapid technological development and dynamic job market make it challenging to keep up with the next in-demand tools.

Which are the most sought-after data analytics skills and tools in 2023?

As the graph shows, data visualization tools lead the way. Obtaining valuable insights from data is essential, but employers highly value the ability to present them clearly.

Still, technical skills are also sought-after, especially SQL and Python. As a data analyst, you’ll be expected to manage large amounts of data, which is impossible without a firm grasp of SQL.

If you’re new to data analytics, our comprehensive Excel, Tableau, and Power BI courses can help you get started. You can also perfect your programming skills with our SQL course and Python Programmer Bootcamp.

Becoming a data analyst is no easy feat, but the effort is worth it.

How Much Do Data Analysts Make?

According to Glassdoor, the average data analyst’s salary is $70.365/year. Meanwhile, ZipRecruiter reports that the annual salary of a freelance data analyst is $76.230/year.

And while most job offers on LinkedIn were for full-time positions, freelancing is also a viable choice. There are plenty of freelance data analyst opportunities online.

The pay varies tremendously depending on the industry, company size, experience, etc.

How much does a data analyst make depending on their seniority level?

Entry level: $54,127/year
Mid-senior level: $70,365/ year
Associate data analyst: $73,171/year
Senior data analyst: $103,071/year
Principal data analyst: $147,330/year

Naturally, the higher the job demands and the candidate’s level of expertise, the bigger the salaries. The data analyst career path is rewarding, but landing a senior-level position demands years of hard work.

Many consider entering the field challenging, but senior positions are fewer, and the competition is tough. Of all job offers in our sample, 39.3% were for entry-level positions and only 11.8% for associate data analysts.

What Is the Job Outlook for a Data Analyst in 2023?

With the mass layoffs and rapid development and integration of AI into the workplace, seeking a stable, in-demand career with good prospects is natural. Fortunately, the data analytics job outlook is bright.

All sectors gather and analyze data from e-commerce and manufacturing to healthcare and banking. With the increasing reliance on big data for business development, the demand for specialists to derive meaningful insights from it grows. And although some aspects of the work may be automated, statistics predict a data analyst's job growth.

The data analytics market size is projected to grow from $7.03 billion in 2023 to \$303.4 billion in 2030 at a CAGR of 27.6%. The sharpest increase is noted in the predictive analytics segment. The growth is expected globally, but the US accounts for most of the global market share.

All this suggests that learning data analytics is a good investment in your future.

In addition, data analyst education and skills open the door to several other career paths, including information security, market research, management, computer systems, and financial analytics—all among the top 25 careers according to the 2023 U.S. News’s best jobs ranking.

Moreover, the U.S. Bureau of Labor Statistics deems the position of information security analyst the eighth fastest-growing occupation and predicts a 23% increase (2021–2023) in demand for operations research analysts.

Lastly, data analytics is a great stepping stone into data science—another lucrative career path with an excellent job outlook.

Starting a Data Analytics Career

Do you have what it takes to become a data analyst? Start learning now with our Data Analyst Career Track. Acquire essential skills and relevant knowledge to build a successful career. Our training will help you become a competent data analyst and earn an industry-recognized certificate to prove it. Sign up for free and try a selection of our courses.

Is the data analyst job in high demand?

Data-driven decision-making has become the standard for modern businesses, which makes data analysts highly sought-after. This demand for all types of analytics specialists is expected to increase as more companies recognize the value of data for business growth.

Is it hard getting a job as a data analyst?

The data analytics job is demanding because it requires robust technical, analytical, and data visualization skills. But with 39.3% of data analytics job offers for entry-level positions, your chances of getting into the field are good. Our job market research provides insight into the skills employers look for to help you get hired.

Is data analytics a good career?

Data analytics is an excellent career choice. The market size and employment rates are growing, and the job is well-paid and in demand. Besides, having solid data analytics skills opens the door to many career opportunities in data science, information security, market research, management, computer systems, operations research, and financial analytics—all with growing employment rates.

Is data analyst a future-proof job?

With the growing usage of big data in business, the demand for data analysts is increasing, and the data analyst job outlook is excellent. Skilled data analysts will leverage technology to optimize and accelerate their workflow and focus on bringing meaningful insights for business growth. Some aspects of the work with data may be automated, but the job won’t become obsolete.