Glimmer of hope in tech job market after a very rocky 2009 |
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Technology layoffs in Washington state rose more than fivefold in 2009, according to a new study. Even so, the state fared better than other tech hubs across the nation, and staffing firms say the market is improving for job seekers in the Seattle region.
“We’re definitely seeing an uptick relative to last year, especially,” said Chris Berta, a partner at The Laurel Group, an executive search and technology staffing firm with offices in Seattle and Silicon Valley.
Then again, it would be tough to get much worse than last year. More than 7,300 technology job cuts were publicly disclosed in Washington state in 2009, according to data compiled by Chicago-based human-resources firm Challenger, Gray & Christmas. Fueled by Microsoft's first major layoffs, that was up from 1,326 in 2008 and 1,229 in 2007.
California, a much larger technology market by comparison, experienced a reported 63,646 tech layoffs in 2009, up from 61,400 in 2008 and 46,744 the year before, according to the Challenger, Gray & Christmas study. On a relative basis, Massachusetts saw a much steeper increase, with 11,769 technology job cuts reported last year, up from 2,015 in 2008 and 1,182 in 2007.
Across the United States, technology companies disclosed 174,629 planned job cuts in 2009, up 12.3 percent from the previous year, according to the firm, which noted that the situation started to improve nationally in the second half of the year.
Now, entering the new year, there has been an increase in the number of jobs that companies are seeking to fill, said Charlie Rudd, CEO of Redmond-based technology consulting and staffing firm SolutionsIQ Corp., which fills jobs at companies including Microsoft and Bellevue-based T-Mobile USA.
“It’s not a huge change, but it’s a noticeable change,” Rudd said.
There are more program- and project-management jobs in the mix of available positions, he said, which is a good sign because companies often fill those roles before hiring others to fill out a project team. In addition, stronger job candidates are getting multiple offers. When the economy is truly growing, he said, most candidates will get multiple offers, not just the stronger ones, but the market hasn’t yet reached that point.
When it comes to permanent positions, as opposed to contract roles, tech companies are looking to hire in specific roles that can help grow revenue, such as marketing, business development and sales, said the Laurel Group’s Berta.
One challenge, he said, is that in many cases companies are looking for very specific qualifications in job candidates — such as a marketing person who worked previously in a technical position — whereas many of the people seeking jobs have more general experience and qualifications.
While companies backed by venture capital have been more cautious, those funded with private equity have continued to hire in many cases, taking advantage of their backers’ longer investment time frames and the availability of talent, Berta said, citing as an example Vertafore Inc., a Bothell-based insurance technology company that his firm works with.
Berta said he expects hiring to be stronger toward the beginning of the year, then cool off over the summer as companies evaluate their positions, before scaling back up again in the fall.
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