The job market is slowing (…but don’t panic)

The job market is slowing (…but don’t panic)

By George Double

Today’s jobs market is very different compared to last year’s, and concerns about inflation, interest rates and market downturns are weighing on the minds of many.?

Why is the market slowing?

Over the last few years there’s been a lot of VC money pumped into Sydney’s tech .?Spiraling inflation has forced central banks to increase interest rates, which has led to less investment. With the VC taps closing, we’re seeing a lot of growth companies are now needing to turn profitable quicker than anticipated as they can no longer rely on investment to weather the storm ahead.

What does this mean for jobs?

Companies are needing to cut costs. This can be done a number of ways – by cutting innovation and R&D funding or by not hiring new staff. Unfortunately (and inevitably) sometimes this also means redundancies.

But don’t panic…

While there is an economic downturn, unemployment is at a 48 year low . There is still a massive global talent shortage (and tech & engineering professionals are in particularly high demand). Here in Sydney our market has many established and profitable companies. Moreover, the Sydney tech community looks after their own. In the last couple of weeks alone we’ve seen three lots of mass redundancies within tech in Sydney and within hours the community was circulating names and details of those looking for work – who have ended up with more options than they can manage and a new job very soon after.

I’m looking for a job – what’s the safe path?

If it’s job security you’re after focus your search on companies that are cashflow positive and profitable. If you’re not sure, ask! Companies will be proud of their revenue growth (and the equity they have raised ??). Do they have product market fit? I.e. is their product established in their industry with a paying userbase, or is it still a great idea that needs to take off.

If you are looking to really make your next job inflation and recession bulletproof, look for a company that leverages themselves off essential goods and services such as healthcare, groceries, fintech, etc.

We have a balanced portfolio of companies we work with to give engineers variety in their search, but we recognise the value of strong, profitable, reputable companies which are recession proof. These companies generally have really complex challenges in dynamic environments,?funding stability, and scale that goes into the millions of active users.?

If you’re looking for a new role and a little nervous of doing it now, reach out to me on LinkedIn or check out SustainAbility’s current jobs here . Even if you’d just like to chat about the options you have on the table, we’re here to help!