The ugly side of coronavirus caused by COVID-19 has once again painted a grim picture; this time, it is the poor recruitment in the tech industry. While the pandemic is still opening the Pandora’s Box, experts are already worried about the aftermath of this impact. Based on new research by talent.io, 38 percent of European firms are freezing most or all of their tech recruitment with London facing a drop of 57 percent in its new permanent tech job listings. The market is growing more and more competitive, maybe worse than the 2008 global financial crisis.
This market research is based on both the internal and external analysis of Covid-19’s impact on the tech recruitment industry across Europe. It monitored hiring activity of over 5,000 tech startups, unicorns, and corporate businesses on its selective recruitment platform and tracked thousands of job board listings across LinkedIn, Glassdoor and Indeed, as well as observed recruitment activity from a considerable number of Google keywords and paid marketing campaigns.
Meanwhile, another report by Adzuna, claims that the U.K. suffered 25,000 job vacancies between March & April and remaining companies are witnessing 38 job seekers on average per job. The job losses occurred due to mass, indefinite pandemic enforced shutdowns of the hospitality and restaurant sectors. “The biggest takeaway from the data, for me, is the fact that the majority of tech companies across Europe are extremely anxious about the current economic climate and even those with ‘war chests’ of V.C. cash or unicorn status are laying off or furloughing employees, as well as merely not posting new vacancies,” Adzuna co-founder Andrew Hunter tells TechCrunch. Adding to the woes, the job site saw a 22 percent plunge in advertised vacancies over the February end to march, along with shortfall of 12.5 percent of manufacturing job postings, and graduate jobs down 13 percent.
Job searching website Indeed, is dealing with similar situations. While the number ofjob postings in every sector is declining, the number of job seekers and applications is rising steeply. This is synonymous with the job market situation that occurred during the 2008 recession. According to Beauhurst’s predictions, 22% of jobs in high-growth tech companies were under severe to critical risk. This is equivalent to 615,000 people being rendered employed. Marketing, social media, and I.T. sales jobs in tech companies are still caught up in a downward spiral. However, the damage to engineering jobs is relatively less, which was 20 percent the previous month.
The main question is how companies shall, and job seekers endure this loss in terms of talent, economy, and revenue. It will take significant time for the market to recover from this blow and have an accurate number of losses in figures and finances; nonetheless, the climb back would not be as steep or exponential as the price we paid to this pandemic.