Dive Transient:
- A robust marketplace for IT expertise softened the influence of tech sector layoffs final yr. Almost three-quarters of laid-off tech staff discovered jobs inside three months, in keeping with a knowledge evaluation relationship again to March by workforce intelligence firm Revelio Labs.
- Main profession setbacks haven’t been widespread, the report mentioned. Simply over half of laid off staff — 52% — acquired a pay bump of their new place, as in comparison with 65% of those that switched jobs voluntarily.
- Whereas a disparity between layoffs and voluntary outflows was anticipated, the comparatively small distinction is telling, Reyhan Ayas, senior economist at Revelio Labs, mentioned in an interview with CIO Dive. “Many laid off staff are having fun with the advantages of a red-hot job market, receiving raises as they transition to new jobs,” she mentioned.
Dive Perception:
Even towards a backdrop of attrition within the tech sector workforce, broad demand for expertise in different sectors has taken the sting out of current layoffs.
“The stigma related to being laid off within the tech sector is gone,” Artwork Zeile, president and CEO of DHI Group, guardian firm of expertise jobs market Cube, instructed CIO Dive.
Outdoors of the tech sector, technologists with cyber, knowledge and cloud abilities are in significantly excessive demand, in keeping with Zeile.
Job posting quantity for tech staff grew 25% through the first ten months of 2022 as in comparison with the identical interval in 2021, in keeping with Cube’s end-of-year tech job report.
Engineering expertise and Agile methodology, in addition to SQL, Python and Java programming, have been among the most sought-after abilities, the report mentioned.
Workforce volatility has been rampant within the tech sector, the place Alphabet, Amazon, Meta, Microsoft and Twitter all introduced current hiring freezes, slowdowns or layoffs.
In accordance with Layoffs.fyi, almost 1,000 expertise corporations have laid off greater than 150,000 tech staff because the begin of final yr. Crunchbase has tracked greater than 90,000 layoffs in 2022.
Demand for expertise rose year-over-year in most main cities and all however 5 states, in keeping with Cube, even in tech hubs reminiscent of San Francisco, the place job postings have been up 14.3% yr over yr.
Availability of tech jobs all through the nation, together with corporations hiring distant staff, has additional eased the transition from one employer to the subsequent. Just one in ten laid off staff has modified cities for his or her new job, in keeping with Revelio.
The market has asymmetries.
Tech sector gross sales associates, software program engineers, entrepreneurs, knowledge analysts and recruiters had a comparatively simple time discovering employment, in keeping with Revelio. Distribution specialists, high quality assurance testers and communication and public relations workers had a barely decrease fee of success, with almost one-third failing to seek out work inside three months.
Revelio tracked a rise within the variety of accounts created on expertise freelancer networks throughout 2022, Ayas mentioned. Laid off tech staff opting out of the normal workforce possible accounts for a portion of roughly 30% who didn’t discover a new employer inside three months.