Companies like Meta, Google, and Twitter have all recently gone through layoffs and/or hiring freezes. Twitter alone laid off 3,750 of its employees. With this being said, it’s important to remember that the tech sector is clearly worth watching, but it is unique and not necessarily representative of the economy as a whole. Tech incidentally makes up about 2% of our economy. Currently, there are 153.5 million jobs, and on average, there are 1.7 jobs open per worker.
It’s become more expensive for tech companies to borrow, something of consideration when these businesses think about expanding. Tech is very sensitive to the business cycle, in part because of their nature to depend on future ROIs. Media has also experienced many layoffs and hiring freezes. Where tech is unique, so is the media industry. This is partly because the media is susceptive to money spent on advertising.
What is the broader picture of the job market?
Continued strength and a resilient job market. Wages are also growing at a rate not seen in decades. Leisure and hospitality (which makes up about 10.4% of the economy), are five times as big as the tech sector. Construction is another booming industry, despite declines in the housing market.
Considering the booming job market, keeping inflation in mind is important. When our job market is growing the way it is, it is harder to tamper down inflation. We even hit a new record on spending during Black Friday. Across the board, 1.7 trillion dollars – what Americans are sitting on. Only 1.3% is in the top half of earners who are less likely to spend.
And while you’re here, don’t forget to view all of APC’s thought-leadership pieces, which cover a range of informational articles for both employers and professionals on topics like resume help, a study on the Great Resignation, top tech hiring trends this year, and more!
Kristen Burgess is the Marketing Specialist at Alliance of Professionals & Consultants, Inc. She has five years’ experience in curating content for digital platforms, social media contributions, and supporting marketing campaigns and strategies. Before joining the APC wolfpack, she worked in digital marketing for software as a service, giving her keen insight into the types of professionals APC hires today. In addition, she likes to stay up-to-date on the most relevant trends within the technology industry through thought-provoking podcasts and newsletters while paying attention to industry leaders’ trends. In her spare time, she serves on the Management Team and helps craft communications for the Junior League of Durham and Orange Counties.
