Archives August 2024

The days when a computer science degree alone could land you a job in the tech industry are long gone. As of 2024, according to data from layoffs.FYI, more than 130,000 tech workers have been laid off from industry giants like Cisco and Intel, following a staggering 263,000 job cuts in 2023.

In this challenging environment, job hunting has become fiercely competitive, with hiring processes growing increasingly complex and drawn-out. Companies now rely heavily on AI to sift through resumes and use technical interviews to assess candidates’ problem-solving abilities and coding skills, making the employment search even more daunting.

Even though the reduction in job openings at large companies might make it easier to find high-skilled workers, many job seekers still have their sights set on landing roles at big tech firms. The efforts they put into securing these positions are substantial, a fact that recruitment agencies know all too well.

Resume Optimization

Kevin Wu, the co-founder of Pathrise, explains that their business model is centred on guiding job seekers through the application process by leveraging social networking, resume optimization, and interview preparation. Clients do not pay upfront; instead, they pay 7% to 14% of their first-year salary once they land a job. Entry-level salaries typically average $80,000, while senior positions can reach nearly $200,000.

Wu notes that Pathrise signed $30 million of contracts last year and is assisting about 1,000 clients. Although this revenue is contingent on clients successfully finding jobs, Wu emphasizes that Pathrise is very selective, focusing on candidates with the highest potential for securing a position. While he did not provide specific figures, Wu mentioned that most of their clientele consists of recently laid-off individuals.

Mock Interviews

Another strategy to improve job search success is to invest in mock interviews. Evan King, co-founder of Hello Interview, mentions that many laid-off job seekers turn to them for support. The company, which launched just a year ago, offers mock interviews priced between $160 and $350 per session, depending on the coach’s expertise. King has observed that many long-term unemployed individuals, frustrated and exhausted by the gruelling job search process, are open to trying new approaches.

Similar services are available through platforms like Interviewing.io, where prices start at $225. Aline Lerner, the founder, says that around 8,000 people sign up for their services each month, and they have served 300,000 clients over the past nine years. According to Lerner, about one-third of engineers in the Bay Area have used their resources. She adds that the top 5% of performers in their mock interviews are often connected with major tech companies for real interviews.

Casting a Wide Net

ApplyPass offers a different approach by helping job seekers cast a wide net. David Hopper, co-founder of ApplyPass, explains that their service uses AI to send out 100 job applications per week on behalf of clients, with pricing starting at $99 per month.

Although some large companies use their automated systems to filter applications, Hopper says his team is working to help their AI overcome these barriers. For many job seekers, this is their first experience facing an economic downturn, which can be quite daunting. Interviewing.io’s Lerner remarks, “There used to be a dozen recruiters on LinkedIn every day begging to talk to you—now you have to work hard to get into companies. It’s not the mindset they’re used to.” Fortunately, these job seekers aren’t alone; they’re finding new ways to navigate the job market.

In this era of tech layoffs, innovative strategies like these are helping workers adapt and find new opportunities, even in a fiercely competitive job market.

For the past few years, Canadian job seekers have enjoyed a strong labour market as employers raced to fill positions amid post-pandemic recovery. Many companies hesitated to enforce office returns, fearing employee departures, and those who left their jobs often found new opportunities quickly, often with better pay.

However, the Canadian labour market is now showing signs of slowing down, making it tougher for job seekers to find and secure employment.

In June, Canada’s unemployment rate increased to 5.4%, the highest in over a year, with more than 1 million Canadians unemployed. This marks a notable rise from the 5.2% unemployment rate reported earlier in the year.

This uptick in unemployment, largely due to more people entering the workforce, signals that competition is intensifying for job hunters. The shift suggests a changing landscape in the labour market.

Wage Growth Slows Down
Economists have been closely monitoring job mobility as an indicator of market confidence. The quit rate has levelled off, reflecting a reduction in job switching, which had surged during the pandemic. Typically, job switchers in Canada would benefit from significant pay increases, but recent data suggests these raises are becoming less substantial.

Recent analyses indicate that pay hikes for those changing jobs have softened, a shift from the high rises seen during the “Great Resignation” period. This trend suggests that the balance of power may be tilting back toward employers, who are less inclined to offer substantial raises to attract new talent.

Longer Unemployment Durations
With hiring slowing down, unemployed Canadians are finding it harder to re-enter the workforce. The median duration of unemployment in Canada has increased, reflecting a broader trend of prolonged job searches.

Recent data from the Employment Insurance (EI) program shows a rise in continuing claims, indicating that more Canadians are staying unemployed for longer periods. This aligns with a broader trend of increased jobless claims, which have reached their highest levels since the pandemic recovery began.

Certain Sectors Cutting More Jobs Than They’re Adding
While overall employment in Canada grew modestly last month, not all sectors saw gains. Industries such as retail and manufacturing experienced job losses, with declines also seen in professional services.

The temporary help sector, often viewed as a bellwether for the broader economy, saw a significant reduction in jobs. This decline in temporary employment could signal future challenges for the Canadian labour market, as companies typically cut temporary roles first when facing economic uncertainty.

As the Canadian job market cools, job seekers may need to adjust their expectations and strategies to navigate this increasingly competitive landscape.