Between hard-hitting news headlines on tech layoffs to reports of unemployment sitting at record lows, it’s hard to get a feel for IT hiring trends in 2023. During COVID-19, e-commerce and tech companies both saw significant booms. Amazon’s profits soared 220%, and together Amazon, Apple, Google, Microsoft, and Facebook hit a combined record-breaking revenue of $1.2 trillion. The technology sector was named the “winner” of the pandemic due to its explosive growth, and with that came frantic hiring to fill talent shortages and talent gaps.
While many industries faced hiring trend downturns, technology has hired more than ever over the last few years. Amazon added half a million employees in 2020. In 2020 as well, Meta had a record-breaking hiring year, increasing employees by 30% and then adding 26,000 employees over the course of two years. Similarly, Alphabet, Google’s parent company, increased its headcount by 15%, bringing on a whopping 37,000 team members.
As tech saw this significant boom, rapidly expanding headcount made sense as companies tried to keep pace with consumer demand. A competitive job market blossomed, the Great Resignation spurred job seekers to find new positions, and many people sought better work-life balance, more flexibility and remote jobs, and higher-paying positions. However, in mid-2022, as the markets turned and fears of a recession sparked, the technology sector was forced to contract, leading to a tumultuous time of layoffs and hiring concerns.
While some proclaim the “downfall” of technology and bemoan doom and gloom around career trajectories in the sector, most experts agree tech layoffs are only a reaction to severe overhiring. Below are some key 2023 tech hiring trends that show that the industry may be going through a rocky patch, but it’s still an excellent time to search for a new role.
A shocking statistic, 96% of workers are seeking a new role in 2023, primarily for better pay. In light of rising inflation and living costs, hiring trends are finding job seekers are looking to bring home more money. Interestingly, 79% are seeking better perks and benefits, such as medical coverage, more paid vacation, performance bonuses, and paid sick days.
Across Salesforce, Meta, Google, Amazon, IBM, Dell, Microsoft, PayPal, and pretty much any other big-name tech company, hundreds of thousands of people have been impacted by layoffs. However, many CEOs like Mark Zuckerberg, Jack Dorsey, and Evan Spiegel have stepped up to say these layoffs are a result of over hiring during the pandemic.
After widespread tech layoffs, 80% of workers still found a new job within three months. While tech layoffs may sound frightening, highly skilled workers generally have no problem finding a job at a new company.
One prevailing hiring trend is talented workers are still looking for new opportunities, and hiring is still taking place. Job applications are also seeing growth in the 16- to 24-year age bracket, with new workers joining the workforce.
Technology is still among the best industries to earn significant wages, and overall salaries are still rising. Going from $108,857 to $111,348, tech salaries are still fast-growing across many jobs . In-demand tech jobs like data scientists are still competitive, with an average salary in 2023 of $138,648.
Even amidst layoffs, tech companies are still hiring talent and struggling to find the right workers. It seems 90% of companies still struggle to fill roles and 29% struggle with skills gaps.
A critical part of a trend of hiring slowdown in 2023 is that it might take longer for candidates to find the perfect role. Some reports claim it could take as long as five to six months, but others say it could only take one to three months. In any case, candidates should be prepared for a longer search.
While the hiring trend news might make job searching in 2023 seem frightening, it’s still a great market to search for that career switch, higher paying position, or better work-life balance. Advantis Global works with top technology companies from Fortune 50s to start-ups looking for permanent and contract skilled talent. We work closely with skilled candidates searching for their next career move and help them land a job at their ideal company, often with a pay increase!
Submit your resume or apply for a job on our website to get connected with a recruiter today.