Navigating the Tech Job Landscape: Insights into the 20% Decrease and Layoffs of 2022

two co-workers discussing the tech job landscape
Posted on 28 March 2023 In Latest News

Vacancies across the IT sector fell in the latter months of 2022 as tech layoffs impacted the talent landscape. That’s according to new research – Feeling the pain: jobs hold firm but recovery will be slow –  from the world’s largest network of job boards, Broadbean Technology.

The research revealed that while IT vacancies held their own in 2022 – hitting a peak of over 90,000 in quarter one – there was a significant fall of almost 20% in the last three months of the year.  This can largely be attributed to rising energy costs and difficult trading conditions which meant that some organisations had to adopt hiring freezes, and in some cases layoff staff.

Encouragingly, application levels remained stable throughout last year, with over three million job applications in quarter one, dropping to just under 2.5 million in quarter four 2022. However, with applicant numbers consistently higher last year than in 2021, it is clear that candidates are open to new roles if they are not satisfied in the current position, a sign that retention will be a key priority this year.

Alex Fourlis, Managing Director at Broadbean Technology commented:

“Following a tough hiring landscape in 2021, the slowdown in vacancies in the latter part of 2022 is a reflection of the hiring freezes and layoffs that were evident at the time, and we don’t expect this to continue at the same rate this year. The fact remains that the IT arena is experiencing talent shortages across a range of specialisms and employers shouldn’t take their finger off the pulse when it comes to attraction and retention strategies.

“The fact that application numbers are still consistently higher than that of 2021 demonstrates that candidates are in the driving seat – and with the cost-of-living crisis seemingly driving job seeker confidence it is clear that individuals will seek out new roles if they feel they are not getting what they want from their current employer. In a skills short sector this will continue to present a challenge for employers this year.”

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