Is now a good time to find a new job in the tech industry? [2023 Statistics]
Despite new big tech layoffs being announced seemingly daily, hiring demand for tech workers in the U.S. has been consistently high. In 2023, it looks like this trend will only accelerate: it’s estimated that 375,000 new tech jobs need to be filled this year, with an estimated 667,000 new jobs to be added by 2030.
And workers are finding new positions fast: among those that were laid off or voluntarily left positions in 2022, almost half of them found a role in less than a month.
But if you’re still feeling a bit skittish about that career switch, we understand. Taking a risk - even a calculated one - can be daunting. We’re here to help ease some of those fears. In this post, we’ll share why 2023 is a great time for you to find your next opportunity, how to evaluate risk associated with a career shift, and how to find the job you want.
Economic indicators point to a strong tech job market
Yes, you heard that right. Most layoffs have been in FAANG - and, consequently, those are the companies that aren’t hiring so much these days. But layoffs haven’t been in startups or mid-size companies. Many of these companies are continuing to grow their teams on their planned trajectory, if not faster. In fact, a third of senior executives are concerned about the shortage of software developers and technical staff - not considering layoffs.
To compete for high-quality talent, companies are rethinking compensation packages
For employers, layoffs from big tech has undeniably been an opportunity. With an influx of qualified candidates entering the market, it’s true that companies can be more selective in who they hire. But they’re competing with 1000s of other companies looking for the same skill set, in candidates that mesh with their team.
That means many companies are beefing up compensation packages. According to HBR, 70% of companies increased salaries and base pay during 2022, and nearly have increased bonus pay. Still a third increased health benefits, and a quarter added more time off.
What’s more, companies are hearing what the job market - especially younger generations - want, outside of traditional work benefits. Tech companies continue to offer hybrid and remote options, professional development support, and many more are beginning to focus on diversity and inclusion initiatives, which can be particularly important for attracting new talent.
35% of young tech workers are unhappy in their current roles
More than a third of young tech workers are unhappy in their roles. While the reasons varied, a lot of it came back to poor management and a lack of clear career progression.
If you’re unhappy with your job for whatever reason, but are scared to make a career switch, consider the alternative: staying at a career with no or limited growth opportunities. Even starting the process of finding a new job - even if that just means thinking through what you want from your next role - is an investment in your professional future.
So, even if it scares you, learning how to evaluate risk when considering job opportunities can help you feel more confident and secure in the decision you ultimately make.
How to evaluate and manage risk in your job search
Of course, everyone has a different risk tolerance. And depending on your current life circumstance, you might feel more or less comfortable taking on risk. Either way, one of the most important things to consider is how you think about risk.
Reframe how you think about risk in your career
When it comes to a career switch, think of it as a calculated risk. It’s not an impulsive decision you make without doing the due diligence, both on what you want from a role and the company. Career changes are more like a game of chess: you should be be thinking a few steps ahead, and consider how the moves you make today and tomorrow will impact the outcome.
Reflect on your professional strengths
Your ability to be successful in a role is dependant on your ability to do the tasks required of that role. So reflecting on your strengths can help you search for and apply to the right roles for you. What’s more, understanding what you bring to the table can help build your confidence at the negotiation table.
Learn about the company and industry
During your job search, getting a high-level view of the industry and it’s projected future can help you understand the security of your position. Is the field growing? Volatile?
You can use similar metrics as a VC. Some questions you can ask include:
What stage is the company? A seed-stage startup founded last year, for instance, will inherently be less secure than one that’s 20 years old and has four previous rounds of funding, for instance.
What’s their business model and target customer? A basic understanding of business models - combined with knowledge of the tech landscape - can come in handy here, too. Knowing the business model can help you better understand average deal size, sales cycle, and growth potential.
Is the company generating revenue? In an economic downturn, this may be more important, particularly if the company is looking to fundraise again. VCs have said companies should be focused on building real value, not relying only on future value.
What do their financials look like? Sites like Crunchbase have detailed data on private companies, including how many funding rounds they’ve completed, and how much they’ve raised.
How to find the tech job you want in 2023
We’ll admit, finding a job is hard. Especially on your own, and especially if you’re still feeling a bit skittish. In those instances, turning to someone with experience can help alleviate fears and build clarity. That’s where recruiters can help.
A good recruiter can help you understand your goals, motivations, and what you want from a role. Here are a few invaluable things a recruiter can offer you:
A broad network and strong relationships: recruiters can leverage these to get you in front of companies quickly.
Support in level-setting your expectations: even today, salary ranges for roles can feel opaque. Recruiters can help you understand compensation ranges across the industry and for specific companies, so you match up with companies you end up interviewing with.
Advice on navigating the interview process and negotiations: Recruiters have deep experience working with candidates and clients alike. They’ll also have an inside scoop on each company they present you to, so they know the types of questions you should expect, the interviewer’s conversation style, and the salary range their relationship with each company they connect you with, so there’s no surprises on either side.
Connections to companies you aren’t familiar with. There are a lot more jobs out there than the ones you can find on your own through Google and Indeed! Recruiters have access to a breadth of attractive roles that you otherwise might never get to see and consider.
Summary: Tech Industry 2023 and Job Prospects
As the U.S. economy continues to recover, the demand for technology workers will remain strong. Employers will continue to work with high-quality candidates to create flexible, attractive compensation packages.
Finding the right job for you is about understanding your own goals and motivations, as well as learning how to effectively evaluate the risk with a career change. Overall, though, 2023 is a good time to make that career switch and advance your careers.
