Tech job postings down 32 per cent since May, nearing pre-pandemic levels: Indeed
TORONTO –
Job search firm Indeed says postings on its website for Canadian tech roles have dropped 32 per cent since May and are displaying no indicators of stabilizing because the sector grapples with layoffs.
With job postings throughout all sectors slipping 9 per cent over the summer season and growing barely since September, the tech openings drop brings postings within the trade nearer to their pre-pandemic stage than the remainder of the financial system for the primary time in two years.
“We’ve gone from really a market in full-out overdrive, where there are such plentiful opportunities for job seekers and really tough competition for employers trying to fill these roles… to one where the situation is a little cooler,” stated Indeed senior economist Brendon Bernard.
“Employers still looking to fill these jobs might have a bit of an easier time while job seekers probably won’t have the same level of options that they did.”
Bernard’s analysis exhibits tech postings had been nonetheless above pandemic ranges in late November and are roughly 47 per cent increased than they had been in February 2020, when the well being disaster started.
He attributes a lot of the easing to a shift the tech sector is experiencing.
The pandemic pushed traders to funnel huge quantities of cash into tech firms, which had been nicely suited to cater to distant work, videoconferencing and streaming.
Companies in such fields noticed their valuations rise considerably till folks returned to places of work and reverted to prior buying habits earlier this yr, pushing tech shares down and plenty of firms within the sector to begin aggressive cost-cutting.
Companies as huge as Facebook mother or father firm Meta, Ottawa e-commerce business Shopify and digital behemoth Microsoft have since made cuts alongside startups like Clearco, Hootsuite and Wealthsimple.
Job cuts aggregator Layoffs.fyi counts 148,431 tech employees had been laid off throughout 946 international firms for the reason that begin of 2022.
When an trade goes by way of a downsizing, Bernard notices many employers within the sector will not be trying to rent and job seekers are much less affected person as a result of extra of them are typically unemployed whereas looking for a gig.
“In a world of higher layoffs, that means more urgent job seekers and for employers still looking to fill roles, an easier time filling them,” he stated.
Before the cuts started, Indeed’s knowledge exhibits general job postings peaked at 74 per cent above their pre-pandemic stage in early May. Tech openings alone rose much more, greater than doubling to 116 per cent above their February 2020 stage by April.
Higher-wage tech job varieties, which embody senior software program engineers, software program architects and administration roles, elevated 149 per cent above their pre-pandemic stage.
It’s exhausting to foretell whether or not the tech sector will retain to pre-pandemic ranges of job progress or see one other dramatic swing subsequent.
Bernard stated, “What happens with the overall industry going forward is going to depend both on the interaction with employer demand and job seekers but also on the health of Canadian tech companies more broadly.”
This report by The Canadian Press was first printed Dec. 13, 2022
