How does Big Tech affect the IT job market?
Big Tech refers to the largest and most dominant companies that capitalize on technology to earn revenues. Their products and services are used worldwide, and the global economy has become heavily reliant on them.
We are all customers of Big Tech. Whether you are aware of it or not, life would be so different without Big Tech as they have become prolific and definitive in this day and age.
What Companies Are Part Of Big Tech?
The so-called Four Horsemen of Big Tech are the ubiquitous search engine Google under the umbrella of Alphabet Inc, e-commerce giant Amazon, social media giant Facebook owned by Meta Platforms, and the tech giant Apple.
Other economists and analysts also name tech giant Microsoft and streaming mammoth Netflix as part of Big Tech. Some other experts consider including familiar tech firms in the list, such as IBM, PayPal, Oracle, Twitter, and Accenture.
The last two decades saw rapid growth among these Big Tech companies, and these firms employ hundreds of thousands of employees worldwide. Capitalizing on technology, these companies are runaway leaders in their respective sectors. As a result, people and businesses rely on them heavily, and major shifts in big tech affect many individuals and businesses alike.
You probably cannot imagine a fully functional life without Big Tech, can you? Yet, because of this dependence, big tech companies continue to dominate globally.
During the pandemic, big tech recruitment continued its upward trajectory. For example, data for 2021 revealed that Amazon recruited 37 percent more employees than the previous year. On the other hand, digital payments leader PayPal’s hiring spree touched a 200 percent growth from the previous year.
Big tech companies on a hiring spree present a rosy prospect for the IT labor market. Fueled by businesses implementing sweeping steps toward automation and digitization, technology and the future of work are showing robust signs of life.
But is this still true to this very day?
IT Recruitment Trends in Big Tech
The writing’s on the wall. The once red-hot hiring spree of Big Tech is now cooling down
What is the one thing that is common today among companies such as Amazon, Facebook, Microsoft, Nvidia, Snap, and Uber? Aside from the fact that these companies have a combined net worth of $3.4 trillion, they have implemented hiring freezes in most, if not all, of their departments. The latest data shows that more than 70,000 tech workers have been laid off just this year. These employees mainly came from big tech companies such as Netflix, Microsoft, TikTok, and Oracle.
While the pandemic boosted Big Tech when business, leisure, and communications all shifted online, the number of jobs available in the tech and IT sector is now decreasing after tremendous growth in the last several years and as the world slowly emerges from the global pandemic.
Experts attribute the slowdown to various reasons, such as the lingering supply chain shortage, inflation, the Russian invasion of Ukraine, and the ongoing COVID-19 pandemic. These have all been deemed contributing factors to this year’s less-than-stellar outlook. The result? The many jobs that used to be available in the IT sector are now being filled less vigorously.
On the other hand, some analysts say that many tech companies are hiring fewer people this year because they are simply taking a pause and re-evaluating what they need moving forward. Hence, the upward trajectory is still there, but companies are just being more prudent on how they should maintain growth even when the worst-case scenario ensues.
For instance, the IT job market still saw a 45 percent increase in job postings from January to June 2022. It is a whopping 52 percent surge in job postings compared to the same period one year ago.
Silver Linings in the IT Job Market
You probably do not need to panic all that much, after all. Even during perceived slowdowns, many companies–big tech and startups alike–remain in dire need of tech workers to ensure that their products and services continue to run smoothly.
Despite all these hiring freezes, many tech roles are also exempt from freeze-hiring policies. For example, Amazon may have laid off some employees but hired continuously for their Amazon Web Services–the tech giant’s cloud computing platform, which continued to expand rapidly despite the slowdown.
Non-big tech companies are also taking advantage of this plateau period by hiring workers formerly employed but laid off by these tech giants.
Getting a Job at a Big Tech Company – Or Maybe Not
Despite this pause in large-scale recruitment in the IT job market, do you ever wonder what ever happened to the “Great Resignation?”
Well, massive resignations are still going on unabated. In reality, this is a good sign. It simply means that the job market remains tight and healthy. The most recent numbers from the US Bureau of Labor Statistics noted that there were 10.7 million job openings in June 2022, while the same period netted 4.2 million resignations.
Translation? Many people still feel confident about leaving their jobs and are confident that they will eventually land new and better ones. Job seekers like you are still in the driving seat. Hence, even if Google lets you go, there are plenty of other employment opportunities you can go to – if you know where to look.
The IT job market remains buoyant if you look at the latest unemployment figures.The unemployment rate in the IT sector currently stands at 2.1 percent, lower than the national average of 3.5 percent. Software development vacancies, for example, are up 125 percent from 2019 and just before the pandemic hit. Moreover, job vacancies for data scientists, web developers, cybersecurity experts, cloud computing engineers, network architects, and web designers are still plentiful.
Continuing to Seize Opportunities in the IT Job Market
Even if the IT job market now is a little more challenging, know that you still have plenty of options. As a job seeker, consider gaining more certifications and learning new skills, especially in artificial intelligence, cybersecurity, cloud computing, and other related fields. These skills have the highest demand in the job market right now.
More importantly, have an open mind about your target companies. While it is understandable if you continue obsessing over how to get a job at a big tech company, consider having a career also in medium-sized companies or startups. Not all IT professionals work for Big Tech. Non-tech industries and even government agencies also need top-tech talent. Just know where to look.
GET EXPERT ADVICE FROM DAVIS COMPANIES ON WHERE TO FIND YOUR IDEAL TECH JOB.
Consider getting the services of a top staffing agency to help you find that ideal job, even during challenging times. Davis Companies have a long history of helping jobseekers find professional success. Our team consists of experts in recruiting and placement of top IT talent. They ensure that your candidate profile is front and center when companies look to hire someone of your skillset and caliber. Reach out to the Davis Companies today!