Strategies for Securing Employment in a Competitive Job Market

The job market for tech sector workers has become increasingly challenging, particularly for those seeking new roles. A wave of layoffs over the past few years has led to heightened competition for available positions, making it difficult for job seekers to navigate their way back into employment. While the bulk of job losses occurred in late 2022 and throughout 2023, significant layoffs have continued into this year, leaving many professionals in a precarious position.

Prominent companies in the industry have made headlines with substantial workforce reductions. For instance, food delivery app SkipTheDishes cut 800 employees in July, and EdTech firm Paper eliminated its entire Canadian tutor workforce. Additionally, digital product startup Sampler shut down completely, while Toronto-based Cohere reduced its staff by five percent after securing a $500 million USD funding round.

Amid these challenges, a report from the job site Indeed indicates a troubling trend: job postings have dipped below pre-pandemic levels. In June, postings fell to numbers lower than those seen before the COVID-19 crisis, with a reported four percent decrease in July compared to February 2020. This decline has contributed to a decrease in confidence among those currently unemployed, with many feeling uncertain about their job prospects.

According to the Indeed report, only 37 percent of individuals actively seeking work expressed at least some confidence in finding a job within the next month. This figure has dropped from 43 percent the previous year and is significantly lower than the 51 percent confidence reported by those currently employed. Early-career workers face an even steeper uphill battle.

Data reveals that the availability of entry-level jobs is dwindling, with a significant number of listings now requiring prior work experience. An analysis of around four million job postings since late 2017 found that 35 percent of postings for entry-level positions demand years of relevant work experience. More than 60 percent of listings for entry-level software and IT services jobs are asking for three or more years of experience. While early-career professionals may have some relevant experience from internships or college placements, they often lack the substantial on-the-job experience that employers are seeking.

Historically, younger employees entered the workforce at a level where they benefitted from mentorship from senior colleagues and received valuable on-the-job training. This traditional path has changed significantly, creating a more daunting environment for Gen Z workers who face job loss compared to their Gen X counterparts, who often had more opportunities for skills development and the benefit of hindsight.

To adapt to the current job market, those in the early stages of their careers should reconsider how they present their skills and experiences. With limited exposure to hard technical skills, soft skills can play a crucial role in distinguishing themselves from other candidates. Employers are increasingly prioritizing candidates who demonstrate transferable skills, often categorized as soft skills. These skills include communication, organization, attention to detail, leadership, and relationship-building.

Job seekers should reflect on experiences that highlight these human skills, such as leading group projects during their studies or organizing college events. Demonstrating these abilities can signal to potential employers that the candidate will be an effective team member in the future.

The World Economic Forum (WEF) supports this perspective, stating in its 2023 Future of Jobs report that analytical and creative thinking will be among the most in-demand skills by 2027, along with leadership, social influence, and curiosity.

In addition, proficiency in artificial intelligence (AI) has emerged as a crucial asset in today’s job market. Recent research from the United Kingdom shows that university graduates with "AI capital"—such as business-related AI studies—are more likely to land job interviews. A joint report from Microsoft and LinkedIn suggests that AI skills could soon rival traditional experience in the hiring process. This trend extends beyond tech specialists, as businesses increasingly seek non-technical talent capable of utilizing generative AI tools like ChatGPT and Copilot.

Possessing AI expertise can also lead to more lucrative salary offers, with reports indicating that individuals with AI skills can expect offers approximately 13 percent higher than those without.

For those who have faced layoffs and are now on the hunt for new opportunities, this moment could serve as an ideal time to engage in upskilling and career-proofing efforts. By enhancing both technical and soft skills, job seekers can position themselves more favorably in a competitive job market, ultimately increasing their chances of success in securing fulfilling roles.