Alten Capital’s focus on technology services businesses guides us in looking into talent markets, especially for technology professionals.
We saw a spike in tech layoff announcements in early 2023, so we started tracking this data from Layoffs.fyi (https://layoffs.fyi/). An update for Q3 is below.
We can now confirm that tech layoff announcements peaked in Q1 2023 worldwide. Q3 shows a further decline in announcements compared to Q2 (~23,000 employees affected in Q3 versus ~46,000 in Q2). Fewer companies announced layoffs in Q3 than in Q2. We are capturing this data some days before the end of the quarter, so the numbers could be slightly off by month-end but directionally correct.
Although the levels are not yet what we saw during 2021 and early 2022, we continue to see a lower number of companies announcing layoffs and fewer tech employees affected every month this quarter. US unemployment peaked from 3.7% in Q2 to 3.8% in August 2023, a solid statistic.
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