For the hundreds of employees who’d by no means skilled upheaval within the tech sector, the latest mass layoffs at firms like Google, Microsoft, Amazon and Meta got here as a shock.
Now they’re being courted by long-established employers whose names aren’t usually synonymous with tech work, together with resort chains, retailers, funding corporations, railroad firms and even the Inner Income Service.
All of these sectors have signaled on recruiting platforms that they’re nonetheless hiring software program engineers, knowledge scientists and cybersecurity specialists regardless of the layoffs in Huge Tech. It is an opportunity for them to stage the enjoying discipline towards tech giants which have lengthy had their choose of the highest expertise with profitable compensation, alluring perks and sheer title recognition.
No employer is making a extra aggressive push than the nation’s largest: the federal authorities, which is aiming to rent 22,000 tech employees in fiscal 12 months 2023. Federal businesses have participated in a sequence of “Tech to Gov” job boards focused partially at laid off employees, hoping to ease their very own persistent labor shortages which have hindered efforts to strengthen cybersecurity defenses and modernize the way in which they ship advantages and accumulate taxes.
“It is an actual alternative for the federal authorities,” stated Rob Shriver deputy director of the U.S. workplace of Personnel Administration. “We’ve got nearly any tech job that anyone may presumably have an interest within the federal authorities.”
Federal, state and native authorities tech job postings soared 48% within the first three months of 2023 in comparison with the identical interval final 12 months, in keeping with an evaluation by tech commerce group CompTIA of knowledge from Lightcast, a labor analytics agency. It was a pointy distinction to the 33% lower in tech job openings throughout that interval within the tech business, and a 31.5% slowdown in such postings throughout the economic system, in keeping with CompTIA’s figures.
Tech hiring reached a historic excessive of greater than 4 million in 2022, though hiring started to fall off within the second half of the 12 months, in keeping with CompTIA. This 12 months, there have been about 1.26 million tech postings between January and Could, a stage extra on par with the pre-pandemic years, stated Tim Herbert, chief analysis officer at CompTIA.
To make certain, the competitors for tech expertise stays tight, and plenty of firms, together with tech firms, are nonetheless hiring — simply extra slowly. The unemployment charge for tech employees is simply 2%. However some who misplaced their jobs in Huge Tech swiftly landed jobs at non-tech corporations.
After Hector Garcia, 53, was laid off by Meta’s Fb in November, it did not take lengthy for him to be snapped up by Abbott, the Chicago-based world well being firm, which expects to rent lots of of software program engineers, knowledge architects and cybersecurity analysts over the following years.
“I made a decision to go for one thing that I hadn’t performed earlier than,” stated Garcia, a knowledge architect who stated he bought provides from tech corporations however was intrigued by the concept of working for a producer that produces one thing tangible in medical units.
Jonathan Johnson, CEO of on-line retailer Overstock, stated that he has seen a 20% enhance in purposes for tech job openings in first quarter in comparison with a 12 months in the past. He additionally famous that it is taking a shorter time to fill a spot in comparison with a 12 months in the past and that the standard of candidates has improved.
“There’s much less demand and extra provide,” Johnson stated.
The layoffs have been particularly surprising for the latest era of employees who’re too younger to recollect the burst of the dot-com bubble in 2000 and “grew up consuming the apps and companies of the massive tech manufacturers,” stated Christine Cruzvergara, chief training technique officer for Handshake, a number one profession website for faculty college students and graduates.
“The volatility and layoffs of the previous 12 months rocked that picture of stability and progress,” Cruzvergara stated.
Throughout the September 2022-2023 college 12 months, the share of purposes by tech majors to tech firms fell by 4.4 share factors on Handshake, in comparison with final 12 months. In distinction, the share of purposes by tech majors to authorities jobs on the platform grew by 2.5 share factors.
Tech corporations nonetheless noticed a 46% enhance purposes from tech majors, as Handshake obtained extra purposes total from that group. However the utility to authorities jobs rose a lot quicker, tripling from final 12 months. Hospitality and well being care jobs additionally noticed a rise in purposes from tech majors — 18% and 82%, respectively — and their share of candidates from that pool remained regular.
Kevin Monahan, director of Carnegie Mellon College’s Profession and Skilled Improvement Heart, stated he first noticed a shift final fall earlier than a number of the largest layoffs. Extra college students returned from internships saying that tech firms weren’t extending job provides or return internships at the moment.
“Not directly, college students had been capable of see the writing on the wall,” Monahan stated.
Ly Na Nguyen, a pc science main at Columbia College, stated she went off LinkedIn for a few weeks on the peak of the layoffs as a result of it was so disheartening to learn posts from individuals shocked over their dismissals. Nguyen is completely happy to be returning to Amazon this summer season for an additional internship, which she stated has added status to her resume. However overtures from exterior Huge Tech has have grabbed her consideration.
“Proper now, I am tremendous versatile,” Nguyen stated. “I would positively take a look at a authorities job.”
In March, younger tech employees from a number of federal businesses spoke at an internet discussion board on Handshake concerning the authorities’s pressing have to recruit new expertise. Lower than 7% of the federal workforce is underneath 30.
“Nobody is essentially going to strike it wealthy working within the authorities,” stated Chris Kuang, co-founder of the U.S. Digital Corp, a federal fellowship program for early profession technologists, answering a query about pay. However he inspired college students to think about advantages akin to pension plans, job stability and the opportunity of engaged on “any difficulty underneath the solar. ”
“On this economic system, a federal job can be one of the vital safe varieties on the market,” Kuang stated.
The federal government faces loads of competitors from non-public sector firms making related overtures.
Lodges and eating places additionally posted barely extra tech jobs within the first quarter of 2023 in comparison with final 12 months, in keeping with CompTIA figures, because the sector emerges from the financial turmoil of the pandemic.
Hilton noticed a 152% enhance in purposes to internships and full-time jobs from tech majors on Handshake this college 12 months, in comparison with the 12 months prior.
“We do wish to demystify the siloed considering of ‘Hey, if I wish to work in tech, I’ve to go work at a tech agency,” Hilton Chief Human Assets Officer Laura Fuentes stated at Handshake’s annual convention of firm and better training leaders.
