What’s going on:
A new report published by LinkedIn reveals that U.S. job confidence in the tech industry fell by 8 points when comparing data from January to May of 2023. During the same time frame, financial services and professional services recorded a 7-point and 10-point decrease, respectively, and the average U.S. job confidence went down 4 points, from +55 to +51 points.
The U.S. job confidence survey is measured on a scale from –100 (most worried) to +100 (most confident). 37,926 professionals in the U.S. were surveyed from Dec. 31, 2022, to June 2, 2023.
While the report reveals a slight downward trend in the average U.S. jobs confidence, there were two fields that recorded an increase. Hospitals/Healthcare jumped up by 3 points, going from +58 to +61 points. Additionally, manufacturing also saw a small uptick in jobs confidence from +55 to +56 points.
Why it matters:
The diminishing optimism in the tech industry reflects more than 200,000 tech layoffs worldwide in 2023, according to LinkedIn. This includes massive layoffs from large tech employees like Amazon and Meta. Additionally, the downward trend in optimism within other sectors like finance and professional services indicates that employment opportunities are becoming scarcer in those fields as well. This contributes to increased competition and uncertainty for workers in those fields.
How it’ll impact the future:
As U.S. job-based optimism slightly fades, employees may need to adapt and acquire new skills to remain competitive in the evolving job market. However, the broader implications of this confidence shift extend beyond the tech industry. Businesses are experiencing post-pandemic economic effects like inflation, and now with the increased influence of AI technology, there is a potential for more disruptions and transformations in the next 5 years. This in turn means that the demand for traditional white collar jobs may decrease even more in 2023.
Large consulting firms like Accenture are investing heavily into AI solutions, and these kinds of major investments will likely contribute to a shift in the skill sets demanded by employers. The future workforce will likely need to show adaptability and a willingness to embrace emerging technologies.