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Background

As companies have been weathering the storm in the economy the last few years, we wanted to explore how firms are changing their strategies. We’ve all seen the recent massive layoffs coming from very successful companies, but, preceding the firing of employees, slowed growth can be seen by closely watching hiring trends and new job opportunities. We’ve seen a massive stop in the last few weeks that tell us this is not the end.

Our findings show that both private companies and public companies are changing their hiring practices in similar ways. In particular, in recent months there has been a severe drop off in hiring most likely due to fears of a recession and therefore a growing need to cut costs.

Employment Opportunities Since 2020

Ultimately, we found that private companies and public companies generally move in the same direction when it comes to job openings. The two types of companies decrease and increase their job opportunities around the same time and at similar rates. This can be seen below, as we took a sample of over 150 software companies in the technology and financial sector and dove into the average percent change in the open job opportunities these companies are offering. Altogether, there has been a decrease of over 10,000 job opportunities in the last six months, or over 25% decrease from January.

The most obvious shifts (unsurprisingly) occurred around March to September of 2020 as the COVID-19 pandemic broke out across the world. However, the most interesting movement that we observed was that private companies begin increasing just a bit before public companies. The question then becomes why are private companies moving up before public ones. This could be because private companies feel the need to stay ahead of the curve in order to keep up with larger companies.

Private Company Job Listings in the First 6 Months of 2022

The past six months of 2022 alone have had its share of ups and downs. As fear of a coming recession grows and the Federal Reserve is raising interest rates, there have been some big shifts in the market. We have highlighted some of the top private companies that have either increased or decreased their job listings the most between January and June of 2022 can be seen in the subsequent chart.

Based on the chart above, the companies that decreased their job listings the most did it with fierce enthusiasm compared to the companies that raised their number of job listings. The main outlier to this is ByteDance, the parent company of the social media app, TikTok. Overall, 73.9% of private companies are decreasing their job opportunities likely in an effort to cut costs in response to rising inflation numbers with an average decrease of 21%.

Key Takeaways

  • In the past few months, there has been an increasing drop off in the number of job opportunities available
  • Private and public companies have similar hiring trends
  • Private companies tend to increase hiring before public companies

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