Recruitment in tech sector is on the brink of freezing, new report says

The red-hot IT talent recruitment market is on the brink of freezing due to a sharp drop in the hiring intentions of the big tech giants.

A total of 23 percent of technology and IT companies plan to lay off staff, according to a major new survey released today.

ManpowerGroup’s Employment Outlook survey says hiring in the sector will fall 25 percent this winter after a period of overemployment.

Mounting pessimism among employers of over 90,000 workers who have been booming during the pandemic will sound the alarm as fears of a recession mount.

This is further evidence that the country is beginning to feel the economic cold due to hiring freezes and job cuts sweeping the sector in the US.

Dublin employers’ hiring intentions have also fallen by 25 per cent and the survey says this is due to the decline in the technology sector.

Irish employers reported their lowest quarterly hiring intentions to date this year, according to the survey. They plan to slow hiring in the last three months of the year after a drop in confidence, partly due to inflation.

But it’s not all doom and gloom as the survey shows the Dublin-based banking and finance sector is reporting its strongest fourth quarter outlook on record and hiring rates are high across regions, including Connacht.

A spokesman for ManpowerGroup said 23 percent of IT employers attempt to lay off employees in the last quarter of the year, compared to 9 percent last quarter. “This is even more acute in Dublin, where the tech sector is most prominent and where layoffs are three times what they were in the third quarter,” he said.

The survey’s hiring prospects calculation represents the percentage of employers who intend to hire employees minus the percentage who intend to fire employees.

“The technology, IT, telecoms and media sectors saw the sharpest fall in net employment prospects in the fourth quarter of 2022 at +17 percent, down 25 percentage points from the previous quarter and down 44 percentage points year-on-year. ‘ ManpowerGroup said in a statement.

It said the decline was primarily due to a sharp rise in outplacements (layoffs or layoffs) as tech companies restructure after a hiring boom earlier this year.

John Galvin, chief executive of ManpowerGroup, said companies that have boosted confidence in hiring now need to cut staff rather than hire new staff.

“Layoffs in the tech and IT sectors have become much more frequent over the last quarter, a shift being driven by big tech companies that may have hired too many employees after reopening their markets and are now facing a surplus of employees. which is now forcing them to sell recently hired positions and withdraw some job offers.

“Nevertheless, overall new hires remain in the double digits, driven primarily by small and medium-sized businesses outside of the big tech space.”

https://www.independent.ie/news/recruitment-in-tech-sector-on-brink-of-freeze-says-new-report-41983789.html Recruitment in tech sector is on the brink of freezing, new report says

Fry Electronics Team

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