Conquering Your Job Search During a Spiraling Economy
If you’ve turned on the news or opened LinkedIn lately, there’s a good chance you’ve heard a lot of chatter about a looming recession and spiraling economy. It has the country shaking in its boots more than the scary zombie your neighbor dressed as for Halloween!
For example, Crunchbase reported 42,000 employees in the U.S. tech sector have been laid off so far this year. Many of these layoffs were at tech giants like Netflix and GoodRx. And startups are reporting that funding is becoming scarce, and valuations have dropped. Yikes!
We get it, this news can be overwhelming AF! Know you’re not alone and we’re here to help. The better you understand the implications and opportunities during economic uncertainty, the more informed your decisions will be for your job search.
Quick Recap: The Year So Far
We started 2022 with many startups experiencing unprecedented growth from the pandemic. That didn’t last long. It’s been a topsy-turvy couple of years and 2022 was no different. After the sugar high of accelerated growth and super-high salaries quickly came a ton of layoffs. It’s been an emotional rollercoaster! All along, tech positions were an in-demand job category, with fewer applicants for the best jobs. But as we enter the back half of 2022, the threat of an economic downturn looms. Founders are worried about rising costs and slowing consumer sales. Many companies are starting to scale back their hiring and staffing levels.
TL:DR - 2022 has been a messy year for startups and tech jobs.
Current State of the Startup Tech Job Market
Let's be crystal clear. As of October 11, 2022, 674 startups have laid off 86,315 employees globally. If you want to keep score, here is a live tracker of companies impacted by layoffs. The sector closest to our hearts, education, falls in the middle, with a little over 4,400 employees laid off this year. So, not great, but not entirely out of the game.
Side note: If your team is going through layoffs, we know how challenging it can be both emotionally and in terms of productivity. We are working on an article that will include helpful tips on keeping your team motivated and engaged during uncertainty. Keep an eye out for that next month.
According to this tracker, the layoffs peaked over the summer and are now consistently slowing. We know that Q3/4 is typically peak recruitment season, so we hope layoffs will continue to slow for the rest of the year.
Predictions for 2023
So what does that mean for you as a job seeker?
We think there is hope on the horizon. Even if we experience a recession in the next 12 months, experts think there will be companies that will continue hiring employees. These businesses will be in markets that typically perform well during a downturn and are considered recession-proof. According to economists, these industries are less likely to be impacted during a recession:
Healthcare
Education
Tech
Government
Why? Because most of us consider these essential services. Consider this, would you prioritize your healthcare over entertainment? A doctor’s appointment might not be as fun as dinner and drinks, but a healthy you is still a better choice.
Even before the craziness of this year, the Edtech sector has been a growing vertical. We know the threat of a downturn can be really overwhelming. While we aren't economists nor do we have a crystal ball to predict the future (wouldn’t that be awesome?), what we can do is help you be smart and strategic in your job search. The good news is, we're still seeing lots of open jobs and many of our clients - especially those in EdTech - are actively hiring and growing.
Be Smart In Your Job Search
Because the overall job market will be tighter, more candidates will compete for open jobs. That means you should think long and hard about your expectations and aspirations before jumping into the fray. Like any smart leader who wants to be successful, you need to create a strategic plan of attack based on your overall goals and objectives. In other words, uncover your endgame, so you know where to look for it and when you find it. Here are some thoughts to consider:
Do you want to stay in your current job category or switch it up? When you talk to your friends about your dream job, what does it sound/look like?
Do you thrive with ambiguity or do you like structure and role definition?
Do you want to work for a startup or an established company?
What problem or industry vertical are you most excited to solve (i.e. education, healthcare, accessibility, productivity, etc)?
Where are you at in your personal life and how does that factor into the work culture you need? How does a family or kids impact your decision (i.e. health insurance, PTO, parental leave, 401k, etc)?
What team dynamic excites you most? What type of people do you want to work with?
Do you want the comfort of a salary or are you excited by the opportunity of equity?
Do you want a company with routinized upward mobility or the ability to move around the org chart?
When were you the happiest in your career?
When were you the least happy? And how do you ensure this doesn't happen again?
The answers to these questions will give you insights into where to start your job search. The more targeted you can be in your outreach, the better results you’ll get for your efforts. That means taking a different approach. What does that mean? Read on!
Wait, Should I Be Applying to Job Postings?
Nope. Our personal option is that sending in your resume through an online job board is not the most effective use of your time or talent. Everyone and their brother will do that. Set yourself apart by taking a different route. Leaders do not apply, they network. Networking gets a bad rap, but it can be an incredibly powerful tactic in your job search.
Create a list of dream job companies and start networking. Leverage LinkedIn to connect with people (even recruiters!) you know or who are second connections and work at those companies to ask for a referral. Make sure to mention something you have in common when you first contact them. Don’t jump right into your referral request. Ask to meet with them first to learn about their experiences at the company. The meeting doesn’t have to be long or formal, just a quick get-to-know-you that doesn’t take a lot of their time is best. Be genuine and curious!
Here’s an example of a contact request:
“Dear NAME, I graduated from OSU a couple of years after you did. Go Bucks! I’ve been following your company’s progress on the XXX project and can’t wait to try the beta when it’s ready. I would love to learn more about the project and your team. I’ve been thinking about making a move into XXX. Would you be open to meet for coffee this week? My treat!”
If the meeting goes well, ask if they’d be open to referring you before the meeting is over. Offer to send them your resume and any other materials they would need to make the referral. You could even offer to write the referral letter for them if that is something you think they would appreciate.
Don’t forget to send a thank you note to your connection if they meet with you. You could even send them a small token of appreciation like a $10 gift card to their local coffee shop. If you are a caffeine addict, you know how much that would be appreciated. You should also ask them for feedback and tips to help you be more effective in your career development.
Aside from LinkedIn connections, you should take part in virtual coffee chats and online networking events. You can offer advice or useful information on companies you know to others looking for work in your chosen field. You never know who you may help in the process. In all efforts, be very deliberate in who you reach out to and how you approach them. Keep your endgame in mind at all times.
Of course, you don’t have to do it alone. You can partner with a recruiter like HigherPeople to gain another competitive edge. We live to place great people like you into jobs, and we understand the unpredictable nuances of today’s job market.
Your Future is in Your Hands
Despite the doomsday news reports, certain tech jobs will continue to be plentiful in the near future. Take the leadership approach to find a job you will love. But don’t worry, you are not alone. We are here to help you succeed. Keep an eye on this blog for more useful articles on trends in the job market, tech startup news, recruiting tips, interviewing skills, managing and retaining teams, and more. We understand the job market and will share our knowledge and expertise regularly.
Our recruiting team is also here to support you as you navigate your next role or your new team, negotiate salaries and benefits, or level up your own skill set. The future is bright when you've got a team of experts to back you up. We'll do this together.
