Computer Science and Technology companies aren’t hiring very much at all right now. What causes this and what metric can people use to quantify “badness” of the market? Low net profit?
In: Economics
Companies tend to freeze hiring or cut back on headcount when they don’t see growth in revenue/profits ahead, see uncertainty, or just have a lull in need like they’ve just launched a major new product.
Right now, there’s ongoing uncertainty whether we’ll have a recession or not, compounded by uncertainty resulting from an upcoming presidential election.
On top of that, tech companies were fighting each other for workers during COVID and many simply overhired, preferring to have workers underutilized and available to staff up projects than have a new project but be unable to staff it up. Without that extreme shortage of workers, companies are reducing their bench. While big tech companies have laid off a decent number of workers in the past year or so, their overall headcounts are generally still way above where they were in 2020. Like Microsoft might have added 25,000 new workers and laid off 5,000.
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