Falling Future Investment? — You’ve already heard news about hiring freezes and layoffs lately.
While the layoff news is a bit non-sequitur, as big companies massage their headcount about +/-5% annually, outright hiring freezes are definitely news.
Several tech giants have already announced freezes, and these are something to think about. With these freezes will likely come other cost-cutting measures.
Some of these measures might include chopping internal projects that are more speculative in nature or decreasing infrastructure investment that might affect future business operations.
While CIOs are still touting intentions to continue investing in IT, investing the same percentage of company dollars this year doesn’t get you as much return as it would have in years past.
Inflation has taken a bite out of the return on infrastructure bang for the buck too, and this means that relatively speaking, we’re probably going to see a decrease in the outcomes of these projects.
Hiring freezes are just the tip of the iceberg for a tight labor market. Lately, we have seen increasing jobless claims and really slow wage growth. This signals weakness.
This data is probably going to get worse in the coming months, and when I say worse, I mean worse for the worker. It’s, in reality, the dose of medicine we need to get the economy back in check.
Some might argue that we need a recession to kill inflation or at least move it down to manageable levels. Well, it’s pretty f*cking hard, so to speak, to have a recession when you have 2.5 open jobs for every job-seeker in the marketplace.
If you’re looking for a job, now is probably a better time to find one than in six months. If you have amazing skills, speak 3 languages, and have years of applicable technical experience and an MIT Ph.D., it’s probably safe to hold off and not rush into something you don’t like; but if you’re what my last boss would call a marginal candidate, now’s the time to pound the pavement and look for gigs.
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