Why the Tech Job Market Will Never Be Like It Was in 2019, or, 2017, or 2022

From our perspective, the current realities of the tech market, complicated as they are, are quite clear. However, after talking to people, we realized that many don’t fully understand what’s happening - with the world, the economy, tech jobs, and women in tech initiatives as a result of all that. So, we thought we’d put together a quick post for anyone interested in understanding why even the best conferences and events for women in tech now have only about 30-35% of the number of teams hiring compared to 2018, 2019, or 2022, and why there are hardly any UI/UX jobs available (and it’s not just those roles). Here are the 4 main reasons, at least from our perspective. But we'd love to hear your thoughts - so comment below if you think we've missed any.

Reason #1 has to do with tech - in fact, reason #1 is simply: TECH!

For those of us in the industry, it might feel like we've been here forever, and as humans who crave stability, we tend to believe this is how it will always be. But tech has taken a quantum leap in its evolution since we first encountered a “www.” Just take a look at eBay’s fiery design from 1999. Colorful, right?

The problem with tech is that it's designed to evolve - and in the process, it kills off older tech. So when ChatGPT emerged, it signaled the dawn of a whole new era of technological development, and we’re only now beginning to feel and see the consequences. The old tools are disappearing, new methods are just starting to surface, and no one really knows what’s going on. (If you do, please let us know via hello@outgeek.org - it’s feeling a bit lonely out here).

Logically, those with money are hesitant to invest because they’re unsure if building anything based on the old ways is worth the risk. Those who created things either sold their ventures between 2016 and 2022, failed, are failing, or secured funding to rework their algorithms to fit into this new world - whatever that means. To sum it up, women in tech initiatives are underfunded because we’re in the early stages of this new era, the horizon is foggy, and many of us are pretending that everything is fine... for now. Plus, the hiring is low, and with all the recent tech layoffs finding talent has become far too easy. So that was reason #1: tech is killing tech.

Reason #2, just as significant as the first, is that politically and economically, we’ve entered a stage of contraction.

Remember the last big wave of globalization and openness that began in the late 1970s and 80s (think the Schengen Agreement, free markets, and outsourcing production to developing countries)? Naturally, the pendulum was bound to swing the other way at some point. Many people felt that globalization promised a lot but ultimately underdelivered, leading to resentment.

Over the past decade, we’ve witnessed a clash between democratic nations and rising authoritarianism - consider Russian aggression in Ukraine or Iran's funding of terrorist groups that aim to destabilize the entire Middle East. We know we’re approaching this one from a distance, but we want you to understand the context of why we're in the stage of contraction. We hope the next few examples we provide will help clarify things.

Just yesterday, the Russian government banned Discord in Russia. While this may not seem significant to us here in the U.S., it represents a loss of market share and potential revenue opportunities for Discord. If they have a tech team dedicated to the Russian market, it could mean to layoffs or reassignments, effectively shelving their plans for that market until conditions improve. Or consider another example: the Middle Eastern conflict has resulted in the cancellation and rerouting of many commercial flights, which could ultimately lead to significant revenue losses for airlines, altered plans, and hiring freezes for the tech teams that support their operations in the region.

These are just a couple of small examples - and if they don’t resonate with you, think about the U.S. government's attempts to ban TikTok, supposedly for security reasons. All of these developments are signs of shrinking opportunities, which are detrimental to us, women in tech, and to the tech industry as a whole. This period of contraction is not good for us in tech. We need peace, open borders.

Reason #3: the Federal Funds rate is high.

Essentially, money is much more expensive now compared to when the Fed had a 0.5% rate in December 2015 or 1.25% rate in December 2017. It probably won't surprise anyone when we say that lower interest rates can make startups more appealing to investors seeking higher returns. In turn, more funding for startups means more money to hire and develop products. Less funding means less money to hire extended tech teams.

Reason #4: No one funds nonsense startups anymore. As a result, those nonsense startups aren't hiring. It’s as simple as that.

The funding frenzy is over (see Reason #3). With money no longer cheap, investors aren’t racing to fund yet another “Uber for X” with a catchy suffix like “ly,” “y,” or “fy.” You know the ones - Chillify, Carwashly ... or those ending with “X,” like UberX. You get the picture. Investors are also stepping back from tech IPOs after the tech IPO market collapsed in 2022. This shift pushed investors away from risk, slashed valuations, and led many later-stage companies to delay or scrap their plans to go public. Nowadays, only 15% of the 1,550 entrepreneurs surveyed by Techstars say their long-term goal is an IPO, according to the CNBC article linked below.

So there you have it. If you’re wondering why only four (or three, or two) companies are hiring at your next local women in tech event - this is why. To wrap it up, it’s due to a combination of tech shifts, political instability, high Fed rates, and the fact that the startup funding gold rush is officially over.

And it's no one's fault really, it's just what it is.

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P.S. Friends, if you’re copying/pasting, or using this for inspiration in your posts, please give us a shout-out. Thank you.

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