Tech Hiring Down 36% - Understanding the Current Job Market Crisis

Product management Product management careers and networking
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I work in tech recruiting and wanted to share some thoughts about our industry’s hiring situation right now. The numbers are pretty rough if you’re job hunting.

According to recent data, tech job listings have dropped 36% compared to before COVID hit. This isn’t just a temporary dip - we’re looking at three years of basically frozen hiring across the sector.

What makes this different from past downturns is that it’s not just economic. Back in 2021, companies went crazy with hiring because money was cheap and everyone thought growth would never stop. Now they’re dealing with being overstaffed and trying to figure out their real needs.

Then AI changed everything faster than anyone expected. When one person can do the work of two or three people using these new tools, companies just don’t need as many employees. They’re spending money on AI instead of salaries.

The job market varies a lot by experience level too. Entry jobs are down 34% while senior roles only dropped 19%. Companies want proven people who can handle uncertainty. Interestingly, machine learning roles are up 59% since 2020.

Geographically it’s all over the place. Some cities are adapting better than others.

For anyone looking for work right now, focus on being a safe hire, stay flexible with location and pay, keep networking, and consider AI-related fields if you’re starting out.

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The geographic stuff here doesn’t get talked about enough. Sure, Silicon Valley and Seattle are still correcting, but places like Austin, Denver, and Raleigh are on completely different paths. Companies are realizing they can get amazing talent for way less money by setting up shop in these markets. What really worries me is how the skills gap keeps growing during this downturn. Basic software engineering skills still matter, but everyone’s running after AI certifications instead of nailing down the fundamentals. The candidates who actually survive this mess? They’ve got solid technical chops AND they get the business side - they know how tech makes money, not just how to build stuff. Remote work is also changing everything about hiring right now. Companies that stay flexible are getting the best people, while the ones forcing everyone back to the office are shooting themselves in the foot. This isn’t some temporary thing we’ll bounce back from - it’s permanently changed how we think about jobs and pay.

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This downturn’s creating some great opportunities if you’re willing to adapt. Smart people are using the time to upskill and get positioned for when things bounce back.

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been job hunting 8 months and honestly the worst part isn’t rejections - it’s ghost interviews where they act super interested then disappear. companies post fake jobs just to “see what’s out there” while we waste weeks on their process. also tired of junior roles requiring 5+ years experience - pick a lane already

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The Problem: The original poster is concerned about the current state of the tech job market, noting a significant drop in listings, particularly for entry-level positions, and the impact of AI on hiring practices. Many commenters echo these concerns, adding details about geographic variations, the importance of business acumen alongside technical skills, and the challenges of navigating ghosting and inflated experience requirements.

:thinking: Understanding the “Why” (The Root Cause): This tech downturn is different from previous ones. It’s not solely driven by economic factors, but also by a fundamental shift in how companies approach staffing due to AI adoption. The overhiring of 2021 left many companies overstaffed, and the rapid advancement of AI allows them to accomplish more with fewer employees. This is leading to significant restructuring, with some roles becoming automated and others demanding a higher level of experience and business understanding.

:gear: Step-by-Step Guide: While there’s no single “fix” for the job market, the following strategies can significantly improve your chances:

Step 1: Focus on Demonstrating Business Acumen Alongside Technical Skills: Companies are increasingly looking for candidates who understand not just the technical aspects of a role, but also how their work contributes to the business’s bottom line. This means highlighting projects where you solved real-world problems, improved efficiency, or contributed to revenue generation. Quantify your accomplishments whenever possible.

Step 2: Adapt to the Changing Job Market: This downturn necessitates flexibility. Consider roles in growing areas like AI, but ensure your foundation in core software engineering principles is solid. Don’t neglect fundamental skills in pursuit of trendy certifications.

Step 3: Expand Your Geographic Search: The job market isn’t uniform. Cities outside of traditional tech hubs might offer more opportunities and lower competition. Be open to relocation if it significantly improves your prospects.

Step 4: Embrace Remote Work Opportunities: Many companies are increasingly adopting remote or hybrid models. Focusing on remote positions significantly broadens your reach and competition pool.

Step 5: Network Actively: Networking remains crucial. Attend industry events (even virtual ones), connect with people on LinkedIn, and leverage your existing connections to uncover hidden opportunities.

Step 6: Adjust Your Salary Expectations: The current market demands realistic salary expectations. While it’s essential to know your worth, be prepared to negotiate within the current range offered.

:mag: Common Pitfalls & What to Check Next:

  • Ghosting: Be prepared for ghost interviews. Follow up professionally but avoid excessive persistence. Focus your energy on companies actively engaging with you.
  • Inflated Experience Requirements: Don’t be discouraged by seemingly excessive requirements for junior roles. Highlight transferable skills and projects to demonstrate your potential.
  • AI Hype: While AI skills are valuable, don’t let companies use “AI” as a smokescreen for unrealistic expectations or reduced compensation. Focus on your core skills first and foremost.

:speech_balloon: Still running into issues? Share your (sanitized) resume, the specific job descriptions you’re targeting, and any feedback you’ve received from interviews. The community is here to help!

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Salary expectations are completely different now. Companies that used to throw $200K+ at mid-level devs are offering 20-30% less, and people are actually taking these jobs. It’s a total flip from 2021 when everyone had golden handcuffs. I’m watching experienced engineers jump into product management or tech sales just to stay employed - creates some interesting skill mixing. Retention’s changed too. Companies aren’t worried about devs leaving for better offers anymore, so they’re cutting perks and tightening equity. The few companies still hiring aggressively? They’re cherry-picking talent at discount rates. This market correction might actually be good long-term. Forces both sides to have real conversations about value instead of living in that inflated bubble.

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lol “ai changed everything faster than anyone expected” - really? I saw this coming when every startup started slapping “ai-powered” on their landing pages. Companies are just using this as an excuse to clean house after their 2021 hiring spree disaster. Half these “machine learning” jobs are basically glorified data entry anyway. The real kicker? Watching HR departments panic about finding “ai talent” when they can’t even define what that means. Spoiler alert: most of these companies will be hiring again in 6 months when they realize ChatGPT can’t actually do everything.