Big tech companies are pulling back on hiring. Is it time to worry?

Google and Microsoft have both taken steps to slow hiring, marking the latest in moves by the tech giant to cut new hires.

Google CEO Sundar Pichai has announced plans to freeze hiring for the rest of the year and re-evaluate hiring plans that have halted most new offers for two weeks, according to a Google statement to ZDNet. Microsoft has cut several job listings, particularly in its Azure cloud business and security software unit. Both companies will continue to honor existing job offers.

In the year On July 12, Microsoft announced a series of layoffs, cutting less than 1% of its 180,000-strong workforce, with a major impact on consulting and customer solutions teams. However, a Microsoft representative told ZDNet that these changes reflect resource adjustments in preparation for the new fiscal year.

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“Microsoft will continue to grow headcount in the coming year, and we’ll be paying more attention to where those resources go,” a Microsoft spokesperson said.

These announcements come with similar news from other tech giants. Companies like Meta and Tesla have announced cuts in new hires, while others like Lyft, Klarna and PayPal have begun layoffs. Cryptocurrency exchange platform CoinBase has gone so far as to revoke accepted job offers. At the same time, inflation is soaring, interest rates are at their highest in three decades, and experts are warning of a looming recession.

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Despite this, employment data shows less gloom. The tech job market sees meteoric growth in 2021, and US data predicts better performance in 2022. According to an analysis from the U.S. Bureau of Labor Statistics by ComTIA, there were 623,627 and nearly 2.2 million jobs posted in technology positions in May. In the year By 2022, it has seen a 52 percent growth compared to last year. There is also a growing digital skills shortage, which is likely to be a priority for many companies over the next 12 months and beyond.

Therefore, for the time being, the hiring of technology is still strengthened. However, recent big moves by tech giants can serve as a reminder that all good things come to an end — and the tech industry is by no means immune to ongoing economic pressures. Although it’s too soon to tell if more significant layoffs will follow, the latest wave of hiring could be just the beginning — making the prospects for graduates and tech workers a little more uncertain.