The large number of layoffs in the tech industry over the past year may prompt some job hunters to consider entering the industry.
But fear not, says Richard Wahlquist, CEO of the American Staffing Association, a trade group that represents staffing companies across the industry.
Wahlquist has a bird’s-eye view of which sectors are hiring and what specific jobs employers need to fill. He said workers will continue to be needed in sectors such as health care and construction. But from his vantage point, he says technology is still leading the way when it comes to job demand.
“Despite recent headlines about layoffs at major companies, technology jobs remain among the most in-demand jobs in the labor market,” Wahlquist told CNBC Make It.
What has changed in the technology industry’s employment environment is that job openings at major technology companies are decreasing. Instead, Wahlquist says tech workers should target their job searches to small and medium-sized businesses.
In fact, Julia Pollack, ZipRecruiter’s chief economist, said in February: CNBC’s “The Exchange” reported that even laid-off tech workers quickly found new jobs.
As of early July, nearly 213,000 tech employees worldwide were laid off in 2023, according to Layoffs.fyi.
Wahlquist said the layoffs were a response to the “irrational hiring frenzy” that occurred during the pandemic, when coronavirus-related stimulus packages fueled Big Tech’s growth. As the macro environment changed and the prospect of a recession loomed, companies that had been overhiring had to cut staff.
Many workers once viewed power players like Meta, Amazon and Google as havens of job security in an ever-changing industry. But over the past year, many employees at these companies have woken up in the morning to sudden layoff messages in their inboxes telling them their jobs have been immediately laid off.
Now, the story has flipped. Big Tech is no longer the safe haven from volatility it once was.
Instead, Wahlquist says tech workers should look to “small businesses, nonprofits, and even state and federal governments.” There may also be great demand for their skills outside of technology fields, such as finance and banking, he added.
For example, he cites the U.S. Department of Veterans Affairs’ announcement in May that it was recruiting 1,000 tech talent to fill new roles.
“Technology is ubiquitous in the labor market, and even if the number of layoffs at some very prominent large companies is relatively small, that won’t change that fact,” Wahlquist said.
The U.S. Bureau of Labor Statistics projects that employment for cybersecurity analysts will increase by 35% and employment for software developers will increase by 25% between 2021 and 2031, both faster than the average growth rate of 5%. Masu.
In other words, the demand for technology workers is not slowing, but how and where they are hired is changing.
Wahlquist says technology companies are focusing more on specific skills, especially as innovations like artificial intelligence and cloud computing continue to disrupt industries.
“As the demand for technology workers continues, companies are changing job descriptions to focus on skills rather than degrees. Those looking to enter the technology field will find the programs and processes they learn today to be immediately helpful. “You have to be prepared to become a lifelong learner because you might become ‘obsolete’,” he says.
Along with upskilling in AI, he says tech job seekers should focus on honing their soft skills to be more competitive in the job hunt.
Don’t miss: Want to be smarter and more successful with money, work, and life? Sign up for our new newsletter.
Source link
