Can We Predict Hiring Trends for Q3 and Q4 2023?
On July 14th 2023 J.P. Morgan released their midyear outlook on the economy. This highlighted an elevation of inflation, a GDP expansion of 1.5%-2.0%, the US labor market retaining a low 3.6% unemployment rate, a slight headwind arising for US consumer purchasing, regional banks reducing lending, and an increase in overall unemployment as economic activity slows down.
The future of employment in tech markets
So what does this mean for employment in tech markets?
There are general trends that follow every economic downturn:
- Reduced overall hiring.
- Focus on Essential Positions
- Emphasis on Cost Optimization
- Increased Competition
- Upskilling and Reskilling
- Remote and flexible work.
- Focus on Efficiency and Automation.
Whilst these are the general trends of employment through similar economic periods, they can create unique opportunities for the tech industry.
Reduced overall hiring will result in companies taking less risk in onboarding additional developers, however, it is more important than ever for them to deliver good products on time – this creates ample opportunity for good contracts to charge lucrative hourly rates for high-quality work.
Focus on essential positions will benefit the tech industry. With the majority of vacancies throughout eCommerce, AI, Semi-Con, and Web3 being highly specialized, hiring for tech professionals will still be desired by corporations. To facilitate the hiring of essential positions remote work it is possible we could see an increase in remote and flexible work options, as well as performance-based bonuses.
The most efficient way to optimize cost is to retain staff. Instead of resorting to layoffs or downsizing, companies may prioritize retaining their existing tech talent. This approach helps maintain a skilled and experienced workforce, preventing the loss of valuable knowledge and expertise. By keeping talented employees on board, companies can sustain their operations, mitigate the risk of skills shortage, and ensure continuity in ongoing projects.
Increased competition in the market leads to two things in the tech industry. Firstly, they want to be more attractive to highly skilled workers. Secondly a drive for innovation and seeking the cutting edge of technologies to win over competitors. The increased competition drives companies to provide attractive remuneration to secure skilled tech professionals, creating a favourable environment for job seekers. In addition, Companies that offer exciting and meaningful work can attract high-calibre candidates who are motivated by intellectual challenges.
A need to be efficient can increase the appetite for technical innovation within companies that wouldn’t traditionally implement cutting-edge features. This leads to an increased demand for tech professionals. Companies require skilled individuals to design, develop, implement, and maintain automated systems and technologies. Through Q3 and Q4 of 2023, it is likely we will see a higher demand for tech professionals who specialize in areas such as process automation, artificial intelligence (AI), machine learning (ML), robotics, and data analytics.
Whilst 2023 has shown economic challenges globally through various modalities, companies are well motivated to retain their current staff whilst identifying highly skilled talent in the market. The key to success in this type of market is knowing where the best opportunities are and how to utilize them.
At Adapt Talent, we specialise in Web 3 Recruitment, AI Recruitment and eCommerce recruitment and have a number of vacancies, contact us today to see how we can help you.
