IT hiring figures drop as Big Tech layoffs take hold

Hiring across the IT sector has fallen so far this year as the impact of layoffs from a number of Big Tech firms, along with macroeconomic pressures, continue to affect the sector. That’s according to new research from the Association of Professional Staffing Companies (APSCo), the trade association for the professional recruitment sector.

The data, provided by the world’s largest network of job boards, Broadbean Technology, revealed that IT job vacancies in March fell by a third compared to the same point in 2022. The drop off has been attributed to organisational cost-cutting, with a number of major employers – including Amazon, eBay, Zoom and PayPal - making well-publicised layoffs driven by wider economic conditions. Vacancy figures for both January and February were also down by 22% and 29% respectively.

Applications for IT roles have, however, remained strong, with both January and February of this year recording yearly increases of 16% and 11.5% respectively. Professionals operating within the industry are clearly seeking career development opportunities, along with improved earning potential, as the data also shows that, despite year-on-year uptick, salary increases remain significantly below the rate of inflation. Employers are being warned that without boosting pay, more professionals may seek opportunities elsewhere.

Ann Swain, CEO of APSCo comments:

With news of layoffs in Big Tech companies, the fall in IT vacancies that we have seen in the first quarter of the year is understandable, though it should be noted that the slight rise in March when the Chancellor’s technology skills focused Budget was announced could be a sign of positivity returning. While we do need to be mindful of the fact that Q1 2022 saw job moves on a large scale which will skew some of the yearly comparisons, the stability of the application numbers suggests two factors are impacting recruitment in the sector: an uptick in candidates due to layoffs and an increase in those looking for better pay and development opportunities.