The COVID-19 pandemic caused economic uncertainty and has led to layoffs in many industries, including technology. However, the impact on the technology industry as a whole varies depending on the specific sector and company. Some companies have experienced growth and increased demand post-pandemic, while others have stolen the headlines due to mass layoffs.
Let’s consider whether technology is a stable career right now.
The Layoffs of 2022 and 2023
According to the Tech Layoff Tracker, “In 2022, there were 1,535 layoffs at tech companies w/ 241,176 people impacted.” These included many employees at social media giants Meta, Twitter, TikTok, and Snapchat. Lack of trust, management changes and policy changes have led to a decline in social media use, and a huge decline in advertising on such platforms.
Unfortunately, the layoffs continued and crossed to other types of technology in 2023. “Amazon, Microsoft, Google, IBM, SAP, Salesforce, and Facebook parent company Meta announce sweeping jobs cuts.” reported ComputerWorld.
“Over the past two years we’ve seen periods of dramatic growth,” wrote Sundar Pichai of Google parent Alphabet Inc. “To match and fuel that growth, we hired for a different economic reality than the one we face today.” (WashingtonPost.com)
Technology behemoths, like Google and Salesforce, went through a hiring spree, hiring many more people during Covid to keep up with the increase in demand. As the post-pandemic world started to right itself, the boom in demand started to slow down, and those public companies needed to show better financial statements, hence layoffs.
“For Microsoft, Alphabet, Salesforce and Meta, the combined increase was 35%, or 126,170 jobs.” (WashingtonPost.com)
Has there been any significant hiring in technology recently?
There were 264,500 tech industry jobs added to the market in 2022, and the industry is expected to grow by 5.4% in 2023. (Zippia.com)
That is not significant growth, but there is more good news: the digital transformation that most companies experienced during the pandemic means most companies now require a robust technology division. Airlines, for example, have large technology divisions that span from the standard corporate tech needs to engineering departments, scheduling divisions, and so on. During Covid, airlines were grounded. Tech teams at airlines suffered and were often reassigned or potentially laid off. Now, the world is back to traveling, and airlines are able to sustain relative growth in hiring.
Technology is necessary for all aspects of life and business, meaning experienced technology employees should have little trouble finding new jobs.
Is Technology a Stable Career?
Yes, technology is generally considered a stable career because it is a growing industry with a high demand for skilled professionals. As technology continues to advance and become more integrated into our daily lives, the need for people with technical expertise will only increase. However, it is important to remember that specific industries within technology may experience fluctuations in demand and job opportunities.
Here’s the but though: any industry that grows as fast as tech will go through growth spurts. Public companies experience frequent layoffs, and morale tends to suffer as a result. In order to enjoy a lengthy and successful career, get as much experience as possible by working closely with apprenticeship programs and establishing good relationships with IT recruiters.