Currently, the labor market is tight. Unemployment, particularly among tech professionals, has remained shockingly low. In most cases, companies are struggling to find the talent they need to thrive.
Over recent months, recession fears have been mounting. Some economists believe that a recession before the end of 2021 is inevitable. If it does occur, it could create a massive shift in the labor market, leading to higher rates of unemployment and, subsequently, increasing the number of active job seekers.
However, that doesn’t mean that tech recruiting will become easy overnight. If you are wondering how the next recession will impact tech hiring, here’s what you need to know.
How the Tech Industry May Fair
During the Great Recession, the technology industry went relatively unscathed. It was still recovering from the dot-com bubble burst, so it may not have had as much to lose as many other sectors. While the Great Recession did show that tech can be resilient during challenging times, that doesn’t mean there wouldn’t be an impact during the next one.
If another recession occurs, incidents like bankruptcies, restructurings, and even executive departures could shake the tech industry. Job losses usually come with that territory, causing more IT professionals to enter the market. This is especially true since the total number of tech professionals has risen over recent years. As a result, there could be an infusion of available tech talent.
How Higher Unemployment Impacts Hiring
While a larger number of potential candidates sounds like a boon for companies that have been struggling to secure the talent they need in recent years, it isn’t without its drawbacks. When openings come available, hiring managers will receive significantly more applications, all of which will need to be screened.
Additionally, some job seekers (if the recession is prolonged) may become more likely to apply for roles that aren’t great matches to their capabilities. In a way, this will create clutter in the recruitment process, and it all has to be sifted through if a hiring manager is going to find the right candidate.
Further, while there may be greater availability of strong matches, it could also take more time to determine which candidate is the best fit. Being spoiled for choice might sound ideal, but it can make it harder to choose which candidate to pursue. In order the find the best applicant, companies are going to need to be diligent. Not only will they need to evaluate a candidate’s hard skills, but also their soft skills, degree of cultural fit, willingness to learn, and values alignment.
While the number of available tech candidates will likely increase during the next recession, that doesn’t mean hiring will automatically get easier. Finding the right job seeker still takes effort. Otherwise, you might end up with a less than ideal fit.
If you’d like to learn more about navigating the nuances of tech hiring during any economic climate, the staff at The Squires Group can help. Contact us to speak with a member of our knowledgeable team today and see how our tech hiring expertise can benefit you.