Tech Layoffs And A Booming Employment Market. What Does It Mean? ∣ Vantage Point

Eli Amdur |: NorthJersey.com

It is a paradox, an enigma, an enigma, an inconsistency. And given the timing, it's dramatic.

Job creation over the past 25 months has been so insane, the largest in history, that we don't know what to make of it, and historians 50 years from now will have a hard time putting it into context. However, there are massive layoffs in tech, and hiring in many other industries is like an all-you-can-eat casino buffet.

Overall, more than 12 million jobs have been added since January 2021, with 517,000 in the last month alone (source: Bureau of Labor Statistics). But on the tech side, 1,045 tech companies laid off 160,997 workers in 2022, and the trend is increasing, with 377 companies reporting 107,930 layoffs in the first 47 days of 2023 (source: Layoffs.fyi).

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What happened? And what to do?

Cherena Walker, executive director of the Career Center at Stevens Institute of Technology in Hoboken, explained: “During COVID-19, technology saw a hiring boom with significant demand, and crypto was part of that, he told me. Last week he added: "There seems to be a lot of orders and now he is adjusting to the new demand."

This wasn't the only time the tech industry went a little crazy, as those of us who witnessed the dot-com boom of 2000 will remember. Indeed, it lends credence to Walker's fair judgement, and I would take the current phenomenon as a conclusion .. an indicator, although, Walker warns, "it may be a leading indicator of what is to come in other areas."

Well, he cautioned that tech tends to be more volatile and volatile than other industries. "It's much more common." Also, technology naturally dives into more new areas, new products, and new product launches than areas like marketing, finance, or operations.

So what's the plan? Let's look at it from the perspective of two people: a recent graduate who wasn't even born when the dot-com busted, and a 50-year-old man who lost his job when COVID-19 hit but decided to do it. , while protecting who he is. - knowing how to make time to start and finish a computer science degree.

In Stevens, Walker says: "We started early, in the summer of freshman year, before our freshmen came in as freshmen." Employers regularly visit campus, faculty are engaged, and although freshmen don't yet have professional networks, Stevens. provides their Commencement in front of graduates. The message is clear. it's not just about the title and CV. so is your connection. And the strategic key is to have fun early. start at the beginning of your career, at the beginning of the hiring cycle, at the beginning of the job search.

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Which brings us back to the 1950s, something that is more or less lacking in an elementary school student. a strong and active professional network, not only in technology, but in all areas. After all, tech jobs aren't just for tech companies; They are everywhere. You must be fire. reach out to people and the university's alumni office, attend events, and generally get involved.

Then the picture becomes a little clearer. Tech House did not fall. What we see is self-determining. And while the job loss numbers are shocking, the bigger picture is that employment in professional and business services rose by 82,000 in January, driven by gains in professional, scientific and technical services (+41,000) and professional and trade with the growth of services. Average 63,000 services per month by 2022 (source: BLS). Of course, not all tech jobs are, but there are some tech jobs.

A smart strategy for our two heroes in this story is to look for technology opportunities in companies whose core business is not technology: healthcare, business services, retail, construction, pharmaceuticals, energy. I hope you understand.

Another part of the strategy, Walker explains, is to start early. There is an old saying. "You never get off to a good start." So if you're trying to figure out how big tech startups are fueling massive job creation, forget it. It's not square at all. If you remember its geometry, it is an irregular image. But that doesn't matter here either.

Develop and improve your skills, expand and improve your network and start early.

Eli Amdur has been offering personal leadership and career as well as corporate management consulting since 1997. He taught leadership courses at FDU for 15 years. Since 2003, he regularly writes for other publications. He can be reached at eli.amdur@amdurcoaching.com or 201-357-5844 .

Why are technological cuts not reflected in the labor market? wsj: