The tech labor market is currently in upheaval, with firms letting go of employees by the thousands and tightening hiring requirements when they are looking to fill positions. The only safe space appears to be in AI.
Companies across the industry spectrum are cutting tech positions, including some of the largest names in the game. Alphabet, Amazon, Meta, and Microsoft have all downsized this year, along with eBay, Unity Software, SAP, Intel, PayPal, and Cisco.
The trend doesn’t appear to be part of the typical cyclical fluctuations that characterize tech employment. Instead, it’s a fundamental reset in an industry that is readjusting its labor needs. Companies are now zeroing in on revenue-generating products and services in their hiring strategies.
Companies that are hiring are now looking for engineers with a broader skill set, including collaboration abilities and a working knowledge of the company’s AI strategy. Ryan Sutton, executive director of the technology practice group at staffing firm Robert Half, said, “They want to see people who are more versatile.”
AI is one of the few areas experiencing growth. Individuals who have worked on large language models can easily find jobs. AI engineers are being offered higher salaries than regular engineers. Kaitlyn Knopp, Pequity CEO, said, “That’s an extreme investment of an unknown technology.”
Tech workers may understandably feel a sense of whiplash from these changes. During the pandemic, firms went on a hiring spree as much of everyday life moved online. Employees were offered generous salaries and significant flexibility as companies competed for talent.
However, the current hiring trends are not as closely correlated to the economy as one might think. Nela Richardson, head of ADP Research, said, “You’re not breaking as much new ground in terms of the digital space as in earlier time periods.”