Q2 2023 Thoughts on the Job Market

Here we are in Q2 of 2023, with some companies ending their fiscal year last week, and we are all staring down the barrel of an economic recession. Was anyone expecting layoffs to continue to be occurring, now at a third of one million people? Are there any experts who predicted COVID repercussions continuing three years after a nationwide full-stop? As the CEO of a technology recruiting agency, I have the unique position of conversing with candidates, companies, and consultants daily, and from these patchworks of conversations, I can piece together a quilt of where we currently stand and where I expect us to go.

In the software industry, I'm sorry to say that conditions are bleak and don't look to be improving anytime soon. We rode the wave of a technological boom for about 15 years, where "breaking into tech" was a solid bet, and capital for startups was being tossed like confetti. That wave was huge, Nazarè size, but the wave has crested and we are careening down the slope, out of control yet staying on our board and sure to crash. From startups to large companies, software companies have been axing their workforce, and this has been bleeding into partner companies, services, integrators, consultants, and API connector companies. Layoffs that started in HR and Sales departments have now slid into Engineering, Marketing, Middle Management, top performers, and any redundant roles, reducing teams to a skeleton crew. A bleak picture, indeed.

I believe that the extent of layoffs from companies is very short-sighted and far too taxing upon the employees remaining. The mass layoffs have created distrust in the current workforce, and the demand placed upon employed individuals will lead to burnout and voluntary resignation. The only way companies will succeed through tough economic times is to continue to innovate product to a "must have" status rather than a "nice to have" status, push product out the door, and retain happy customers. The cuts being made in each of these departments - engineering, operations, sales, customer service, etc. - will affect the ability of these companies to be market leaders in 12-18 months. The solution I see for companies is to hire thoughtfully, honestly assess the value of the product being sold, and start treating existing employees as though they were the company's lifeline - which they are. The damage may have already been done, but companies have a chance to be market leaders in two years if they start to take action now.

For candidates, while the current situation has been bleak since Q3 of 2022, I am beginning to see glimmers of hope. I still strongly encourage candidates to seize this opportunity to forge their own path: write that book you've been meaning to, develop a training series for your area of expertise, or gather former colleagues to build a solution to a real problem. There simply will not be 333,000 jobs available to fill the need in the next 24 months, and waiting for your alms is not advisable. Venture Capital and Private Equity firms still have funds to give, and while the evaluation for these funds will be stricter than ever, startups will continue to be created. If you're lucky enough to still have a role, help those who are looking for work by speaking up to your boss about the need for resources and additional staff. The choices your company makes do not have to fall upon you; take care of your mental health and do not feel compelled to work three different roles. For all candidates, employed or not, I am starting to see some companies beginning to hire back thoughtfully. Expect to see more roles in June or July, and prepare yourself! You will be competing for the same roles amongst thousands of others: know what sets you apart, have your SME skills sharpened, and keep the lines of your network open.

The technology bubble has burst. There will be no "going back to how things were", all we can do is accept what is now and make the best choices for our future. Technology companies: I urge you to make choices to ensure you will still be incorporated in two years' time. Hire the top talent that is available today. Pivot your product. Take care to not burn out your existing workforce. For candidates, consider moving out of technology, or specifically, SaaS software. There are still industries that are hiring, but may require some sacrifice on your part: no equity offer, hybrid work, and no extra money for an in-home office set-up. Evaluate what is most important to you - paycheck or perks - and pivot. After all, isn't that what we do best in the tech industry?