here’s been several
high-profile news stories
about tech companies,
either freezing their hiring
or reducing their staff.
So we opened up our labor market data
to take a closer look at
what’s actually going on.
(upbeat music)
(can bangs)
It’s beer with Emsi Burning Glass.
Let’s go.
And today I’m drinking an
imperial stout by No-Li,
the Wrecking Ball.
– [Man] Get that mug.
– Oh yeah.
I’m going up to the top.
Oh, yeah.
That’s good, that’s real good.
Hi, I’m JC Christensen.
Speaking of wrecking ball,
in the past few weeks,
you might have seen stories
about Netflix laying off staff,
Twitter enacting a hiring freeze,
and Facebook announcing they’re
slowing their hiring pace.
Stories like these seem
to indicate a hard turn
from just a few months ago
when tech couldn’t hire quick enough.
The stock market’s turbulent,
likely causing some companies
to rethink their growth plans.
And that has many observers asking,
is tech hiring slowing down?
And if it is, will the
rest of the economy follow?
– [Man] Beer break.
– That’s a beer break for sure.
So what did we actually find in the data
for tech hiring trends?
Turns out, IT hiring is
not necessarily a unique
leading indicator of the broader economy.
Instead, IT hiring trends
usually move in line
with other professional occupations,
like accounting, engineering,
HR, and marketing.
In fact, IT has almost
been recession proof,
due mostly to the persistent
shortage of talent.
During the Great Recession
back in the late 2000s,
which makes me feel kind of old,
the number of employed people
fell by over 7 million.
But IT was just a fraction of
that number at only 100,000.
1.43% in case you’re wondering.
And as of last month,
the unemployment rate for IT workers was
still hovering close to
recent historic lows.
Any stout is my favorite.
Imperial Stout is like the
favorite of the favorites.
(JC laughs)
Also it’s easy to forget
that the tech sector is a lot broader
than the famous FAANG stocks.
(JC laughs)
A significant amount of IT hiring happens
in companies you don’t
think of as tech at all.
Our data also shows that IT postings
in manufacturing, for example,
have jumped by nearly
20% in the past month.
And by 98% overall, since
the beginning of this year.
In finance and insurance,
IT postings jumped 83% since January,
with a significant
increase in the past month.
Even retail trade is
experiencing historical highs
in IT hiring,
although not at the levels
of other industries.
So good, so good.
In short, it’s important to zoom out
and look at the overall market
when considering these headlines.
Even with threats of
the economy cooling off,
there are still only
53 available employees
for every 100 job openings.
And there are currently
11.5 million job openings.
That means it’s nearly
impossible to over-hire
in this environment.
And the days of cycling a workforce are
likely a thing of the past.
Instead, we expect companies
to keep reasonable sized
workforces on board,
regardless of economic ups and downs.
The reality is…
The reality… (laughs)
The re, the reality…
– [Man] Stop!
(JC laughs)
– [Man] Marker!
(JC laughs)
– The reality is even
with an economic downturn,
that pressure to find talent
is likely here to stay.
That’s where we can help.
Our labor market data and
analytics is used by companies,
universities and governments
throughout the world.
Every day, we’re helping decision makers
understand the shifts
in the talent market.
Does your people strategy
need more competitive edge?
If so, you should check us out,
and let us know how we can help you
better position for success.
That’s our tech check for this week.
Thanks for joining me for this
beer with Emsi Burning Glass.
(JC clicks tongue)
Oh, that’s good.
That’s really good.
