Here is what your future looks like as a fresh grad in the tech sector

Did you ever dream about working for a well-known big tech business like Amazon, Google, or Meta as you prepped for finals? Though these hopes would have been viable a year ago, things are not looking good for those planning to start a career with big tech companies.

The tech industry had a drastic growth in 2020, which stretched onto most of the last year. However, as interest rates continue to rise, large tech companies are beginning to feel the financial strains of hiring too many people too quickly. Some tech businesses announced hiring freezes, while others literally halved their staff. Fortune says that more than 120,000 tech jobs were cut in the massive layoffs of 2022.

Many businesses moved online during the COVID-19 lockdown season. This is when the tech industry began expanding. For some tech players, their revenue even saw a 90% increase in worth and stock. While it was all rainbows and sunshine for the tech sector, many other industries faced difficulties. The hospitality industry nearly collapsed during the pandemic. However, the tech sector enjoyed its boom, and employers kept hiring new staff to deal with the nearly doubled workloads.

Today, many tech employers are finding it difficult to control the situation. The US economy is in turmoil, with businesses scrambling to cut expenses. Cutting staff seems to be the most practical solution for many employers. While a considerable portion of tech workers already in the US workforce lost their jobs, many tech graduates are still watching the scene from the sidelines.

Imagine the stress of competing for an IT job against a former employee from Google with over 10 years of experience as a fresh graduate. Even before there was a fear of recession, hiring managers had an aversion to recruiting fresh graduates. Today, as businesses are struggling, HR teams are even more likely to go for experienced candidates when they hire.

The competition is tougher than it was ever been for new graduates in the tech sector. If you are a tech grad hoping to score a good job in 2023, things may get a little bit harder than you anticipated. Here are some challenges that our industry experts believe you will have to face in your job search in 2023:

The concerning number of layoffs

The tech industry had a record number of layoffs in 2022. Meta laid off 13% of its workforce, while Twitter almost halved its staff. Amazon plans to axe 10,000 jobs. A handful of other well-known tech names, including Best Buy, Ford Motor Company, HBO Max, Peloton, Shopify, Re/Max, Walmart, and Wayfair, will be in the headlines regarding layoffs in the coming days. Experts are predicting that we will see 30,000–40,000 more tech layoffs in the first quarter of 2023. This will add 40,000 more experienced workers to the candidate pool you will be competing against for a tech job.

Remote work makes it easier for anyone in the world to apply for tech jobs

Many organizations adopted the work-from-home culture to deal with the pandemic-induced lockdowns. There is no sign that remote work is going away anytime soon. Remote work may allow tech workers to work leisurely from their own place. However, this also means that the available remote tech jobs are not limited to an all-US applicant pool. As a fresh grad, you will also be competing with other tech workers from all over the globe who might even be willing to work for a lower salary.

Businesses announcing hiring freezes

Mark Zuckerberg announced that Meta would freeze hiring until December. Twitter, Google, and Amazon too plan on the same thing. If you have been hoping to work with one of these tech giants, you may have to realign your dreams to fit the reality of the situation. However, business startups are still hiring talent. You may stand a chance of scoring a decent job with a midscale or small business if you create the perfect recent college grad resume for yourself.