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Here’s How the 2023 Recession Will Impact Tech

September 11, 2023
Here’s How the 2023 Recession Will Impact Tech

Word is going around that we’re living at the onset of a recession… but how is it really affecting the labor market? Why is ambitious talent still dropping it all to explore new opportunities? With most professionals still remembering the global downfall of the economy in 2008, the thoughts of another recession are stopping many in their tracks but not all…

Economists began forecasting a recession based on the persistent increase in inflation rates we’ve been facing since mid-2021. Although the general consensus is that predicting the end of an economic recession is very difficult, a Forbes piece shared that the main indicators that will signal the end of a recession are:

  • Consumer Price Index (CPI)
  • Gross domestic product (GDP)Unemployment rate

These indicators will help executives and decision-makers, both in the tech industry and beyond, strategize on all levels of business.

Balancing Companies’ Spending & Employment 

With the slash in propensity to consume affecting most communities, many executives have been feeling the pressure and are tightening up budgets, operations, and staff which have brought mass layoffs and hiring freezes. Yet, the past few months (beginning in 2021, just as inflation rates began to rise) have also been met by the Great Resignation, also known as the Big Quit and the Great Reshuffle. Across the board, a record number of employees have been resigning from their jobs with Indeed sharing that between 4.1 million and 4.5 million people have quit their jobs each month in 2022 (16% above the pre-pandemic norm). 

Just a Trend or an Impactful Movement

The job market has felt the effects of the unsteady economy, but after a global pandemic, the workforce is better equipped than ever to push through the downturn. A study conducted by LinkedIn and shared by CNBC found, “63% of employees in India and around 43% in both Australia and Singapore said they are “more confident” in searching for a new job compared with 2022”. The sentiment of “defiance” is global. Professionals are more aware than ever of the dissatisfactions and limitations they have faced in the past and want to connect with companies they truly identify with.

The Factors that Matter to These Job Seekers

Current job seekers are taking the time and making the effort to upskill and align their values and aspirations as professionals. Factors that are driving the new standards and guidelines include:

  • Work-life balance and personal well being
  • Hybrid and remote work options
  • Career growth opportunities
  • Competitive salaries
  • Job security

How this Recession Will Affect the Tech Industry

As digitalization accelerates and the demand for consumer-facing tech grows, the demand for tech talent follows right behind. A report by Bains & Company shared that although hiring has slowed down in the past year (2022), the demand for critical tech skills remains high. Amongst the highest areas of growth, we’ve seen a boom in:

  • Web3
  • AI/ML
  • Data Science
  • Cloud Computing
  • Cybersecurity

Narrowing in on the work conducted at WillDom, we are seeing continuous growth in the future of software development. The U.S. Bureau of Labor estimates that the employment of web developers and digital designers has been growing and will continue to grow by 23% from 2021 to 2031. This includes about 21,800 openings projected each year over the decade. 

Interestingly enough, we’ve been seeing opportunities growing faster in nontech industries than in the tech industry. This reflects the heavy demand for top, specialized talent to develop and deliver competitive applications that will set companies apart from their competition on the digital front. 

Our teams deliver precisely those specialized services top companies are seeking. Working on both the front and back end of applications, they build the site’s structure, data, and logic and construct the client’s visual identity throughout their development. 

We provide an immersive experience for both developers and clients with full collaborative, plug-and-play teams working at a high speed to deliver quality solutions. At the core, each of our projects is led by an agile methodology which assures excellence from beginning to end.

During an economic downfall, keeping your tech projects moving and growing is vital. So explore how our team of developers can support your tech efforts with a range of services and solutions here at WillDom.com or on LinkedIn.

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