Doom and gloom... the (tech) hiring cycle.
The economy and, therefore, the job market usually follow a cycle with ups and downs.
The last big down was between 2006 and 2008. The U3 unemployment rate hovered around 9% to 10% for a few months.
Currently, we are at about 3.7%.
-> These are official numbers, and the real unemployment rate is always higher, but it does not matter when we take the past to assume what could happen in the future.
In January alone, tech announced over 21,000 layoffs so far, that's about 840 per day. Annualized for 2024, that looks like 300,000 job cuts in tech.
--> Hiring is very low; if you lose your job, it may take many months to find something new, probably for a lower salary and onsite.
If we do not see a soft landing and follow what usually happens, the number for the end of the year could be higher, in the worst case above 500,000 for tech alone.
Do you have a plan for the not-so-soft landing?
Or, do you just hope for the best and ignore the possibility of a layoff?
To be clear, nobody knows the future. If we get the promised soft landing, January is just an anomaly and all things are fine.
Global Leader for Rackspace, Consulting Partner Center of Excellence at AWS || Mentor || Board Advisor || Texas Longhorn || Rice MBA
3moThe significant tech layoffs of the last ~1.5 years combined with the current industry downturn affects MBA hiring in tech. This in turn impacts consulting, venture capital, and private equity sectors. As tech companies reduce hiring, the ripple effect extends to these industries, where professionals often move between roles in tech, consulting, and finance. This interconnectedness means fewer opportunities and greater competition for MBAs across multiple sectors.