Fortune May 9, 2022 “Tech companies are slowing hiring or announcing layoffs. Is this the beginning of a cooler job market? By Tristan Bove
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Summary by 2244
Image from Seeking Alpha who cites FXSTREET
Like the once high-flying stocks, the tech “hiring boom seems to be slowing down.” Uber commented recently that hiring would now be “like a privilege”, Meta has slowed hiring, Netflix and Robinhood “have gone as far as starting to lay off employees.”
Does this portend a job market that is “beginning to stall?” Glassdoor’s Daniel Zhao comments that “this is the time to take advantage of the tighter labor market for workers” essentially while it lasts. The market decline follows a shift from the extraordinary demand fostered by pandemic work-from-home and use of eCommerce to return-to-office and return to shopping, eating and entertaining at brick-and-mortar locations.
Add to those tech drivers the general drivers of higher interest rates and fears of recession generally. In total, all of these factors may slow or halt “job-hopping and high employee turnover.”
Reports suggest as well that wage increases are smaller now than in 2021 and that workers reportedly willing to leave jobs now stands at 37 million compared to 47 million last year. It’s unclear whether non-tech jobs demand will decline as well.