Low Unemployment and How it’s Affecting the Tech World

July 23rd, 2019

As the strong economy continues to hold steady, the unemployment rate remains at historically low levels. Because of this economic situation, tech companies need to up their game when it comes to staffing. The demand for high-quality IT candidates is high, with salaries on the increase as well.

Organizations with strong company cultures known for employee development are generally able to retain their best tech talent. However, this isn’t a guarantee considering the candidate-driven market and the strong competition for the top technology employees. Let’s take a closer look at how the current low unemployment rate affects the tech world.

A Technology Skills Gap Remains

Even with low unemployment, the demand for certain technical disciplines is high, making it difficult for companies to source candidates with these skills. According to data from LinkedIn, candidates with experience in data analytics, machine learning, Cloud administration, and information security are up to 10 times scarcer compared to the average job role. Needless to say, companies looking for talent with these skills must look harder and offer a higher compensation and benefits package to make the hire.

In addition to a technical skills gap, companies also struggle to find candidates with soft skills – communication, problem-solving, leadership, etc. – needed to thrive in the current tech world. Some organizations are even implementing training programs focused on these areas. Of course, this approach dovetails nicely with providing that proverbial culture focused on developing internal talent.

Increased Difficulty in Making That Hire

Even when companies find the perfect candidate with the right mix of technical and soft skills, it’s becoming more difficult to actually hire them. Competition for the top candidates remains fierce, with some on the market for only two to three weeks. Because of this, tech organizations need to streamline their hiring process to ensure a final decision gets made as quickly as possible.

Additionally, more candidates and even new hires are job ghosting – essentially disappearing from the hiring or onboarding process. While an extremely unprofessional practice, there’s no denying it’s a trend on the increase, largely due to the low unemployment rate. In this stressful environment for HR personnel, a focus on improving the company culture while trying to find passive candidates that make a great fit is a wise approach to the staffing process.

Work With Synerfac

If you need help finding great candidates for your tech organization, speak with the experts at Synerfac. As one of the top IT staffing agencies in the country, we can help your company’s success no matter the unemployment rate. Schedule some time with us soon.

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