The technology industry is filled with frowny faces right now. Stock and cryptocurrency prices are sinking and concern is up. It feels as though each day brings news of some tech company or start-up laying off workers or putting on hiring. It happened again on Tuesday when Coinbase, the crypto exchange, said it was cutting 18 percent of its work force.
The pain is real for people who lose their jobs, but behind it is this bigger picture: The job market at technology companies, and for people with high-tech skills, is on fire and staying that way – at least for now.
US unemployment rates for high-tech jobs range from dinky to nonexistent. As soon as a company announces layoffs or hiring freezes for people with those skills, ZipRecruiter sees other employers finding and recruiting them, according to Julia Pollak, a labor economist with the career website. On average, every tech worker looking for a job is fielding more than two employment offers, the staffing firm Robert Half told me.
“When people say things are slowing down, I ask, ‘On what data?'” Said Ryan Sutton, a district president who is in charge of recruiting technology for Robert Half. “Everyone wants to say the stock market is down. Well, the stock market is not always an indicator of hiring. “
People who specialize in recruiting for tech jobs told me that hiring has slowed down in some areas as the stock market has declined and fears about a looming recession have increased.
But they say that right now, the worst you can say about the tech job market is that it has shifted from insane to simply nuts.
The market for tech talent, and for all types of workers at tech companies, is so hot that even job recruitment specialists are being relentlessly headhunted. Just about every time that Georgena Frazier, a recruiter for the rent-to-own real estate start-up Divvy Homes, spoke to potential new recruiter candidates this year, they tried to persuade Frazier to work for their company instead.
There are two big reasons why workers are in demand. There is a long-term trend of companies wanting to hire more tech workers, and the number of qualified candidates has not kept pace. In addition, hiring at many technology companies is also still catching up from the pandemic of the first months when many companies are hiring or hiring laid-off employees, only to have hired staff members when their business does not fall apart.
Susan Dominus, a staff writer for The New York Times Magazine, captured the power of tech workers to hop from job to job, and demand and often receive compensation and work conditions, in a wonderful article published in February.
“I was really struck by a tech recruiter who left nothing to chance,” Dominus told me. “Even if someone accepted the offer, she kept recruiting for the position, just in case that person bolted to the second better offer.”
There are signs that tech hiring has cooled at the margins. Shauna Swerland, the chief executive of recruiting firm Fuel Talent in Seattle, said she has seen some large tech companies suddenly pause plans to hire specific positions – sometimes ending conversations with job candidates in the middle of a second or third round of interviews.
A handful of companies like Coinbase, Twitter and Redfin have revoked a small number of job offers from people who have accepted them. Tech hiring experts said rescinded job offers are unusual when there is no widespread crisis like a recession or a pandemic. Some companies, as Coinbase said on Tuesday, may have hired too many people too quickly last year when tech was booming.
Stephanie Ciccone-Nascimento, who coaches tech workers, said she was surprised recently when a company pulled off an offer for a sign-on bonus from a candidate she was working with. (The job offer remained.) “There was this moment post-pandemic where candidates had a lot of power in asking for what they wanted,” Ciccone-Nascimento said. “That has reversed quite a bit.”
Having slightly less power over employers may feel disorientating for tech workers, but don’t feel too sorry for them.
More people are employed in tech-related occupations than they were at this point a year ago, according to US government data for several categories of tech jobs that ZipRecruiter’s Pollak analyzed for me. Even Elon Musk, who said this month that he was worried about the economy and that Tesla needed to cut salaried workers, also said that the automaker would likely have more employees in it than a year ago.
Sutton said that about half of tech workers that Robert Half speaks to have changed jobs for several years. He said they were probably making less than new hires as tech pay has soared in the past couple of years. (Yes, he’s saying that a lot of highly paid tech workers may be underpaid.)
Ciccone-Nascimento said she’s advising tech workers to stay in their current jobs if they can, but she also sees the moment as a blip in the technology specialists in many fields for man demand. “There are always jobs,” she said.
If you don’t already get this newsletter in your inbox, Please sign up hereGeneral Chat Chat Lounge
Before we go…
Are drone package deliveries real this time? Amazon said it planned to make its first deliveries by drone in the United States this year. (The company does not yet have permission from regulators to do so.) That would be about nine years after Jeff Bezos said that Amazon’s drone delivery could be a reality in four or five years.
Chinese companies are snapping up equipment to make computer chips: US officials who are worried about technology competition with China say the country is building a homegrown chip industry faster than the US can expand domestic chip manufacturing, Bloomberg News reported. (A subscription may be required.)
How virtual reality can help children with autism: Gautham Nagesh writes for The New York Times about a company that is developing virtual reality lessons to help behavioral therapists, speech therapists, special educators and parents who work with autistic children.
Hugs to this
A lawyer and grandmother in the Pittsburgh area had no clue that he beat three professional football players in pickleball. A group photo with “these guys” went viral online. (Pickleball is a paddle ball game similar to tennis. I had to look it up.)
We want to hear from you. Tell us what you think of this newsletter and what else you like to explore. You can reach us at email@example.com.