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.
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 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:
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:
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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