Many of the thousands of tech workers who lost their jobs in recent months are quickly finding new jobs.
- Almost 80% of recent hires who were previously let go from a tech company have found their next job within three months, a ZipRecruiter survey showed.
- Tech industry has cut tens of thousands of jobs amid inflation and interest rate hikes.
- Labor market remains tight as job openings exceed the number of unemployed Americans.
Four of five workers recently fired by a tech company found a new job within three months, and two in five landed new employment in under a month, according to a ZipRecruiter survey of about 2,600 people. These figures lag just behind all industries.
Meta Platforms Inc. (META) and Amazon.com Inc. (AMZN) are among companies that announced sweeping layoffs recently, swelling the ranks of axed tech workers to more than 50,000 in November. Staff reductions and hiring freezes have coincided with high inflation and a series of interest rate hikes by the Federal Reserve and contrasts with a tech hiring boom in the early stages of the pandemic.
Only about a quarter of those job searchers, whose skills are broadly applicable across many industries, ended up working in retail, financial services, healthcare, or other areas. The overall labor market is tight as more than 10 million openings exceeds the number of unemployed Americans.
Job candidates have the upper hand when it comes to prospective employer response times as well, as companies seek to complete the hiring process before applicants get picked up by competitors. Some 90% of those surveyed said they heard back from recruiters or hiring managers within a week. Only 5% spent more than six months seeking new work. That's despite the fact that job ads for software developer and mathematics roles on Indeed are down by about 30% in the last year.
ZipRecruiter said widespread tech layoffs could also lead to a surge in new businesses as fired workers launch projects that they may have previously put off in favor of lucrative tech sector job packages.