The End of the COVID Tech Hiring Surge⬇️
Transitioning from pandemic-fueled hiring to our current reality.
Let us mourn the 2020-2021 COVID tech hiring surge—a fleeting moment of growth born from extraordinary circumstances. The hope for a repeat of those booming days must fade, as it was never a new normal, just a temporary rise fueled by the chaos of the pandemic. A trend born out of necessity, and one we must accept as gone.
As a technical recruiter and job board owner, I’ve navigated the highs and lows of the hiring landscape. I launched the Black Tech Pipeline job board in 2020, at the height of the COVID pandemic, when companies ranging from FAANG giants to solo startups were in the midst of hiring sprees.
Let’s address some of the reasons why there was a hiring surge during the pandemic to begin with:
Low interest rates from central banks encouraged companies and corporations to borrow money for investing in their own projects and expansions, as well as for funding mergers, acquisitions, and investments in other companies. All of this required or allowed for tons of hiring.
With quarantine policies and the closure of offices and physical businesses, many companies had to pivot to digital, expediting their need for technical capabilities. This shift created a demand for tech talent across the board, from software engineers to cybersecurity experts, to develop strong online systems and a quality online presence.
Since businesses in all sectors had to move to remote work and weren’t prepared for that culture and work shift, they had to build digital infrastructure to support it. This required additional hiring of tech talent.
With everyone working from home, tech product companies and services faced a surge in demand from both existing and new users which required more hiring. This is also when we saw many people becoming entrepreneurs and starting companies with their own digital solutions to various industry problems, which in turn required them to expand their hiring efforts as well.
Now let’s switch to present day.
People are back outside, and the demand for tech products and services has normalized, while the desire for physical products, in-person services, and real-life experiences has increased. Offices and brick-and-mortar spaces are open again, and for various reasons, we’re facing high inflation and rising interest rates. Borrowing money isn’t attractive anymore, and consumers are pulling back on spending in certain areas to save. Companies are feeling the impact of this current economy, losing money, bracing for losses and trying to remain profitable.
So, what’s the solution? For many companies, it’s layoffs—a trend we’ve seen repeatedly over the past two years. With lower demand and high interest rates, companies are scaling back the workforce they expanded during the pandemic. They don’t need as many employees now, especially with the rise of automation, AI, and outsourcing to cheaper contractors overseas.
As a technical recruiter and job board owner, I’ve experienced the drop in hiring demand firsthand. With many layoffs and a crowded job market, it’s easier for companies to find qualified talent and fill job postings quickly. We’re seeing a complete reversal from the hiring surge during COVID.
Landing a role right now doesn’t mean tech isn’t hiring; it’s just adjusting to a new reality and will continue to evolve with the economy. As demand for talent shifts, focus on the fundamentals: apply consistently, seek referrals, upskill, and network. These strategies will help you stay competitive and take advantage of opportunities in the shifting tech environment.
For companies currently hiring, check out our job board here. Stay tuned for our new website and job board launching soon!