Why is the job market so awful right now? I know everyone is aware that the market is rough but I haven't seen a reason why that is.

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Really? Seems like we talk about it every time. It’s a complex and somewhat opaque confluence of things. Broad factors include:

Covid Over-hiring being corrected for, due to a concern over a slowdown in demand and the rise in federal interest (and thus borrowing) rates.

A tightening of budgets and cost cutting measure enacted for the same reasons.

A reaction to wage increases and other inflationary costs.

A “wait and see” approach to fed policy changes

A small amount of “regaining control” by upper management over the creep in workers expectations.

A cheap way to goose margins and thus stock price in an uncertain economic environment.

Some will also blame “AI” but that’s accounted for almost no reported layoffs. Yet.

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I think a lot of it has to do with the hangover from Covid. And there are a lot of layoffs going on, and I honestly suspect a lot of that is being overdone. Companies follow trends, and if a few companies start laying people off, other companies panic and follow suit, and suddenly it's an avalanche of people losing their jobs. Which makes the job market a mess.

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Tech overhires during COVID.
Salaries went up/more employee concessions (wlb, remote) as reaction to tech overhires/stealing agency talent.
Tech pulls back post covid.
Tech is 20% of all agency revenue as client base. So they sent both employees back to the market AND stop advertising.
Agencies start laying off.
Tech starts “year of efficienciy” - pulling back on full time (vs hiring people on long term contract, equity, pay, wlb). Basically trying to find our breaking point as workers.
Agency people stop leaving jobs in fear - the lack of turnover at agencies is killing us (currently).
And now interest rates are up.

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We’re in a recession

untrue

I personally think that things are picking up, I’ve seen a bunch of jobs posted by recruiters on LinkedIn and just people asking for candidates.

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