In February, news of mass layoffs across the tech industry rattled the market. Since the start of 2023, 297 tech companies have laid off nearly 95,000 workers, according to data provided by Layoffs.fyi, which has been monitoring and reporting on industry layoffs since 2020. Some CEOs cited over-hiring during the pandemic as the cause while others succumbed to pressure by investors. Yes, the alarming number of displaced workers looks dire on paper, but one company’s loss may be another’s reward. As Staffing Industry Analysts (SIA) reported, “Employer job postings for tech positions rose by 76,546 month over month in March to a total of 316,000 — representing the highest level of employer hiring activity in seven months.”
Businesses Need Skilled Tech Talent
As the 21st adage goes, every company has become a tech company — not just software development houses like Google, Salesforce, and Microsoft. While these industry giants decided to scale back their workforces, plenty of other businesses still need the same skilled talent to help them innovate their offerings, gain a competitive advantage, and enhance performance with the aid of automation. As SIA’s data suggests, many displaced workers may find new opportunities in companies that don’t directly manufacture hardware or produce software.
Companies that rely on massive enterprise resource platforms such as Salesforce and SAP need experts who can implement, configure, and add new capabilities to evolve the functionality as their customer and business requirements grow. A bank might determine that its customer experience could be improved by chatbots, UI/UX refinements, or more advanced FinTech. Accomplishing these goals means finding talent who are well-versed in those skills. The findings by SIA seem to support this reasoning.
Positions for software developers and engineers accounted for the largest share of job postings in March, SIA noted, but employers also scouted for IT support specialists, systems engineers and analysts, IT project managers, cybersecurity analysts, and engineers.
“Markets across the country saw increases in employer job postings for tech positions, led by New York City, Chicago, San Francisco, Atlanta and Charlotte, North Carolina,” SIA wrote. “The jump in hiring activity also extended to cities such as Arlington, Virginia; Huntsville, Alabama; and Plano, Texas. Among states, California, Virginia, Texas and Maryland recorded the largest month-over-month increases in tech jobs postings.”
The Good News for Tech Hiring
The Economy Is Recovering
The unemployment rate in the United States has been steadily declining since the beginning of 2021. In February 2023, the unemployment rate was 3.8%, which is the lowest it has been since February 2020. This is good news for tech professionals, as many of them were laid off during the pandemic. As the economy continues to recover, businesses are starting to hire again, which is creating new opportunities for tech professionals.
Demand for Technology Is Increasing
Businesses are looking to adopt new technologies to improve their operations. This is creating new opportunities for tech professionals, as they are needed to help businesses implement and use these new technologies. Some of the most in-demand technologies include artificial intelligence, machine learning, big data, and cloud computing.
The Supply of Tech Professionals Is Limited
There are not enough people with the skills and experience that businesses are looking for. This is driving up salaries for tech professionals, as businesses are competing for a limited pool of talent. According to a recent report by the Bureau of Labor Statistics, the number of jobs in the computer and information technology occupations is projected to grow 13% from 2020 to 2030, much faster than the average for all occupations. This growth is being driven by the increasing demand for technology in all sectors of the economy.
Tips for Jobseekers in Technology
Looking for work can be daunting enough without the ongoing discussions of layoffs in the media. But as we know, companies are hiring and positions are opening up. Patience, persistence, and preparedness can make all the difference. Here are some best practices to follow.
- Update your resume and make sure it highlights your skills and experience. Your resume is your first impression to potential employers, so it's important to make sure it's up-to-date and highlights your skills and experience. Use keywords from the job postings you're interested in to help your resume get noticed by applicant tracking systems.
- Network with people in the tech industry. Networking is a great way to learn about job openings and get your foot in the door at companies you're interested in. Attend industry events, connect with people on LinkedIn, and reach out to friends and former colleagues.
- Search for job openings online. There are many websites that list tech jobs, such as Indeed, LinkedIn, and Dice. You can also search for jobs on company websites.
- Prepare for interviews. Once you start getting interviews, it's important to be prepared. Practice answering common interview questions, and make sure you have a good understanding of the company and the position you're interviewing for.
- Follow up after interviews. After your interview, be sure to send a thank-you note to the interviewer. This will show that you're interested in the position and that you appreciate their time.
Work with a Staffing Agency
Enlisting the support of a staffing agency can provide tech jobseekers with powerful resources. Many firms are contracted to help see critical projects through to completion for clients. These project-based roles are lucrative, can last up to a year or more, and provide excellent opportunities to connect with organizations or further develop your skills. Here are some other advantages you can seize by working through a staffing provider.
- Staffing agencies can help you find jobs that match your skills and experience. Staffing agencies have a network of clients who are looking for tech workers, and they can help you find jobs that match your skills and experience.
- Staffing agencies can help you negotiate your salary. Staffing agencies have a solid understanding of the salaries that are being offered for tech jobs, and they can help you negotiate a salary that is commensurate with your skills and experience.
- Staffing agencies can provide you with support and training. Staffing agencies can provide you with support and training to help you succeed in your new job. This can include things like resume writing, interview preparation, and on-the-job training.
- Staffing agencies can help you network. Staffing agencies can offer you temporary or permanent jobs, depending on your needs and preferences. Temporary jobs can be a good way to get your foot in the door at a company, and they can also be a good way to try out different jobs to see what you like best. Staffing providers have spent years building relationships with client organizations, and they can put your resume in front of the right people at the right company.
- Staffing agencies can help you find permanent jobs. They have a strong network of clients, and they can help you find the right job for you.
New Opportunities Every Day
The overall tech industry is still experiencing some layoff activity. This is because companies are struggling to keep up with the changing economy. As a result, they are making cuts to their workforce in order to save money. Despite the layoffs, the overall outlook for tech jobs is still positive. The demand for tech workers is expected to continue growing for the foreseeable future, and there will be many opportunities for qualified candidates.