“The tech job recession is over”
Tech analysts from Bernstein Research have retired their “tech layoff” data series and declared that the tech job recession is over - is it time to celebrate?
We can all cheer a collective cheer that the layoff reports rolling in month after month and dominating our news feeds seem to be coming to an end! As August comes to a close, The Business Insider reports that so has Bernstein Research’s monthly updates on the tech jobs layoffs that they have been posting for over a year.
The end of Bernstein Research’s monthly updates feels like a sign of the times, it’s a major positive shift for the industry as tech job layoffs have slowed down to a trickle in comparison to the first half of 2023. And to analysts at Bernstein Research, this steep decline in tech layoffs was also enough to declare the end of the tech job recession.
Tech layoffs are starting to slow way down (yay!). Now, when will hiring pick up?
As the Bernstein analysts boldly declared the end of the tech job recession, they were still left with the question, when will hiring “re-accelerate” again?
Although the article doesn’t point to a full on hiring spree to the likes of 2021 yet, there are indicators in the market that things are picking up in the near future. For example, they say big tech has seemed to pause all their layoffs and FAANG tech giants Meta and Amazon are now actually seeking to rehire some of their laid off workers. We’ll call that a win!
They also point to the fact that although many still look solely to Big Tech for signs of the end of the ‘tech job recession’, tech startups might have been pointing us that way all along. The article states that tech startups, particularly AI focused startups, are still raising billions in funding and have stayed strong on the hiring front. We’re betting big on tech startups!
The most recent CompTIA jobs report from August also shows positive data trends pointing towards an uptick in tech hiring. According to the report:
- The tech unemployment rate is half that of the national average.
- Tech unemployment has been hovering at around 2.0% for the past several months, remains below the national unemployment rate of nearly 4.0%
- Many U.S. states and metro areas have seen positive gains in tech job postings.
- States are seeing job posting growth, including California which had many people questioning the strength of Silicon Valley
- California, Texas, Virginia and Florida are leading the pack when it comes to the most tech job postings while California, Indiana, Colorado and Michigan have seen the most positive gain in tech job postings in August
- Major U.S. Cities and both known and up and coming tech hubs are also seeing the positive job posting growth:
- Washington D.C, NYC, Dallas, Los Angeles and Chicago are leading the metro tech job posting pack, while Denver, Washington D.C, Phoenix, Tampa and Philadelphia have seen the most job posting growth.
- Skilled tech workers are still in demand.
- Job postings for Software Engineers, Developers, IT Project Managers and Data Analysts remain strong and are the top open jobs right now in tech job postings
More good news - Intelletec’s clients are hiring!
Although we can’t predict when the hiring floodgates will burst wide open again, we can say with confidence that there are many positive indicators that the market is trending upwards for tech hiring in Q4 of 2023 and beyond.
Right now, one of the best ways job seekers can navigate the changing market and find their next career move in tech is through recruitment firms like Intelletec. We currently have many exciting opportunities available with amazing startups across the tech sector. Check out our open roles and connect with one of our recruiters today!
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