Hiring Woes Persist in 10 States Despite Tech Layoffs

Last updated on July 8th, 2023 at 02:34 am

Layoffs in the US IT sector are still ongoing. 

This week, several businesses, including some of the most well-known names in the IT industry, such as Poshmark and Ericsson, revealed that they would be conducting widespread layoffs.

More than 102,000 people in technology businesses located in the United States (or technology companies with a substantial workforce in the United States) have been laid off in major job cutbacks thus far in 2023. 

This estimate considers the recent, unannounced layoffs at Poshmark after the acquisition and the staff reduction at Ericsson that included 8,500 people.

Throughout the previous year, public and private technology businesses were forced to contend with growing prices and a turbulent stock market, eliminating more than 140,000 employees. 

The economy has now come to terms with a culture of excessive recruiting and skyrocketing valuations. 

As a result, entrepreneurs are now compelled to carry themselves through a chilly market as the availability of venture capital becomes scarce.

Warning Signs an Employee Is About to Quit

This year, several comprehensive technology businesses, including Qualtrics, Carta, and Verily, have let off employees because they overheard during times of solid expansion. 

We have prepared a list of recent layoff announcements made by technology businesses headquartered in the United States so that we can keep track of them.

Despite The Recent Layoffs In The IT Industry, Companies In These Ten States Need Help Finding Qualified Candidates

Layoffs have been commonplace in the IT industry, and the present labor participation rate is still lower than before the epidemic began. 

The website WalletHub, which focuses on personal finance, analyzed the rate of job vacancies in each state to determine which states have the most job opportunities and which conditions have the minor job openings in the most recent month and most recent year.

The percentage of job openings in the most recent month was given 2/3 of the weight in determining the ranking, while the rate of job openings in the most recent year was given 1/3. 

Tech company layoffs and hiring freezes in 2022 - Protocol
Image courtesy of protocol

Read: 2,000 McKinsey Employees Face Layoffs Tracker for 2023

The following are the states in which companies are having a more difficult time filling employment vacancies:

  1. Alaska
  2. West Virginia
  3. Louisiana
  4. Montana
  5. Lowa
  6. South Carolina (Scotland)
  7. NM (New Mexico)
  8. Virginia
  9. Tennessee
  10. State of North Dakota

Read: How Upwork Is Revamping To Facilitate Full-Time Employee Hiring

The following are the states in which companies report less difficulty in filling job vacancies:

  1. The Big Apple
  2. The state of New Jersey
  3. Connecticut
  4. Washington
  5. Hawaii
  6. Florida
  7. The District of Columbia
  8. Utah
  9. Indiana
  10. Kansas

Read: Middle Management Cuts: Tech Layoffs Trend

Raymond J. Keating, the chief economist at the Small Business & Entrepreneurship Council, said that one cause for job vacancies is that workers have yet to return to the labor market entirely. 

It is one of the reasons why there are openings. According to him, the most recent figures for January predict a labor force participation rate of 62.4 percent. 

He mentioned this in a statement. “That percentage has been progressively growing, but it is still lower than the rate that existed before the pandemic, which stood at 63.3 percent; never mind the rate that existed previous to the rate that existed before the Great Recession.”

Related: Top 25 US Jobs with the Fastest Growth in 2023




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