The past few years saw the hiring market operate at a frantic pace as we navigated the global tech skills shortage which was only compounded by the pandemic and border closures. In 2023, we continue to find ourselves in a candidate-short market, however, things are beginning to settle as rising interest rates and inflation are driving a greater sense of caution. Candidates are increasingly seeking security and stability in their roles, while employers are cutting costs and streamlining their workforces, resulting in slower market movement.
For candidates, upskilling is essential. With a growth in tech layoffs globally, to remain competitive in market, you need to be keeping your skills up-to-date and remaining aware of market changes to ensure you are putting your best foot forward to employers.
For employers seeking to hire those candidates with highly sought-after skills (think those with expertise in cybersecurity and data), competing on salary alone will be almost impossible unless substantial offers are made. Therefore, going beyond the money and considering benefits, flexibility, and your EVP, are all key.
With 2022 seeing a growth in data breaches and cyber hacks, cybersecurity is of greater importance than ever. Demand for professionals in this space is only set to grow as cyber threats become ever present and companies look to secure their data. According to CyberSeek, there were over 755,000 online cybersecurity job postings in the US as of December 2022, yet not enough skilled candidates to fill these roles, with research highlighting a ratio of 68 candidates to every 100 job openings. For candidates seeking to upskill, cybersecurity is the way to go.
2023 promises to be another demanding year for the tech sector with a legacy of skill shortages, an uncertain economic climate and increased scrutiny on IT spend. 2022 demanded that we secure our data in more innovative and sophisticated ways and the focus on data security will only increase again this year. More innovative means are required to secure the best people hence partnerships between agency recruitment and in house teams will become even more important as we navigate the year.
Joelle Beaton,
Practice Lead,
Talent Melbourne
One of the hottest skill-sets is anything cybersecurity related. As well publicised, there have been numerous critical data breaches over the past 12 months…As a result, cybersecurity is now the number one most talked about topic in most (if not all) company board meetings.
Anthony Whyte,
Managing Director,
Talent Adelaide
With the recent security breaches experienced by major corporations, the demand for cyber security related skillsets has increased exponentially and as businesses look to maximise the revenue opportunity within their data, business intelligence and data analytics skills continue to be in high demand.
Keith Dixon,
Managing Director,
Talent Brisbane
It’s popping up on our newsfeeds almost daily - “tech giant announces major layoffs”. So, what’s the reality of the situation and how are the recent growth in layoffs affecting the hiring market? Our recruitment experts weigh in:
The recruitment market has definitely slowed down in recent months. As companies become more cautious of hiring, a lot more thought is going into the positions they are sourcing for. They are looking to hire employees with broader, less niche skillsets who can cover more within their roles. The inflated salaries and candidate shortages we saw at the start of 2022 have also become less prevalent with fewer positions being advertised due to companies focusing on creating leaner, more efficient workforces.
Claire Wright,
Senior Talent Acquisition Partner on client site through Talent Solutions
The last 3 years have been a rollercoaster in terms of the tech talent market and there’s been another major shift towards the end of 2022 and beginning of 2023. We’ve seen significant volumes of layoffs and hiring freezes particularly across the Big Tech landscape, meaning less competition for SMEs and an influx of immediately available candidates. However, this period of uncertainty in the tech industry has certainly increased the importance of job stability for candidates which employers should be prepared for.
Kiri Evans,
Senior Talent Acquisition Partner on client site through Talent Solutions
The frenzied pace of hiring during the pandemic saw tech companies grow rapidly in response to the increased need for digitisation and associated tech skills spurred on by COVID-19 and continued lockdowns. However, with economic concerns mounting and the rate of expansion unsustainable, we’re seeing companies cut back and become more discerning about the positions they are hiring for. More weight is being placed on retaining top performers rather than looking externally to bring new talent on board.
That’s not to say, however, that hiring is completely off the table. Despite this growth in tech layoffs - over 154,000 professionals were let go in 2022 - research has revealed that 72% have found new jobs within three months. When hiring, companies are seeking highly skilled candidates with broad skillsets who can deliver on more within their roles. These top candidates are still in high demand and are quickly being re-hired by other employers as the tech candidate shortage continues.
It’s also not only employers who are eager to secure this talent. Venture capitalists are also capitalising on this talent pool, investing in startups established by those laid off from companies such as Twitter and Stripe. These highly skilled candidates are being snapped up and present immense opportunity to the market as digital skills grow in demand.
Our recruitment experts believe that demand will remain high for these professionals in most regions:
Whilst it can’t be denied that there has been a ‘shock’ to the tech recruitment market, it is more of a small correction than a disaster. Demand across all sectors remains strong, and there remains a shortage of candidates in most technical and analytical sectors.
Colin Etheridge, Talent North America CEO
We firmly believe the top talent in New Zealand will continue to be in significant demand.
Kara Smith, Talent NZ Country Manager
Employers are either taking a cautious or bullish approach to the market. The more cautious have decreased hiring and in some cases implemented hiring freezes, whereas the more bullish are taking advantage of the market to increase their hiring whilst their competitors hesitate.
Matthew Munson, Talent Sydney Managing Director
Companies are increasingly open to hiring talent across borders, particularly to combat continued tech skill shortages. So, if you’re not considering talent pools beyond your region and are not offering remote options, you'll find yourself up against companies who are, making the competition for top talent even tougher:
Without a doubt, New Zealand will still have to contend with overseas employers hiring kiwis who can work 100% remotely.
Kara Smith, Talent NZ Country Manager
The prevailing, growing acceptance of a remote workforce continues to present massive opportunity for candidates and enterprises alike.
Colin Etheridge, Talent North America CEO
To uncover what’s happening in your market and what you can do to get ahead, click through to your region for our local market insights:
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