‘Software Engineer‘ – it has been a very stable career for a very long time. The demand for software engineers in the last few years has grown exponentially, most probably because of some prominent factors like lucrative salary packages, career growth opportunities, better work environments, learning exposure, remote working, etc. But the pandemic has caused an economic reckoning and the current unprecedented times have set upon the careers of everyone, leading to rising layoffs, hiring freezes, and rescinding offers.
Under these circumstances and with every expert and news now foreseeing a global recession, are software engineers recession-proof?
Yes, various questions related to this scenario are roaming in the tech world, like –
- Are developer jobs recession-proof?
- Will the demand for software engineers decrease?
- Will software engineer salaries decline?
- Are software engineers being laid off
and many others!
POV 1: Software Engineers are not Recession Proof
Times are tough and the going is only gonna get tougher for everyone, no matter the field or job role. Companies in this economy are just looking for an excuse to kill a project or lay off a department. The last year or so witnessed a crazy amount of hiring with employees getting offered 2-3x more than the acceptable market rates. Either the company had poor projections or sheets needed to be balanced, whatever may be, the time is now for a market correction. The safety jacket has started drifting away.
1. Extensive Layoffs Across Tech Companies
From startups to FAANG, layoffs are happening across the software engineering field. Netflix laid off 450 positions, while Meta right after having gone public slashed off its projection to hire 10k engineers to about 6-7k. Microsoft let go around 1,000 engineers, Twitter had roughly 3,700 jobs cut and Ola laid off 200 engineers.
2. Aside From Layoffs, Hiring Plans Have Slowed Down With the Hiring Freeze Across Major Companies
The news is that jobs are open either at managerial levels or through strong referrals. Mainly hiring is going to be treated as a privilege for firms. Uber announced that it is only focusing on the most important positions and freezing hiring across. Intel froze its hiring efforts in the desktop and laptop chips department. Spotify slowed down its hiring process with targets cut by 25%.
POV 2: Software Engineers are Recession Proof
A skilled software engineer is a scarce commodity and never had to worry. While there may be slight pay cuts that you’d have to take but nothing major to worry about. You will continue to be employed through the recession too especially with the shortage of talent rapidly rising.
1. With Rapid Digitization, the Demand for Skilled Software Engineers Will Only Increase
Technology has developed a lot and continues to undergo advancements resulting in an ardent need for skilled software engineers ready to execute.
2. Skilled Talent Pool Has Always Been in Shortage, a Testament to Why Software Engineers Will Be Recession-Proof
A study by iCIMS stated that it takes 66 days to fill a tech position compared to 43 in other roles, which is 50% longer, 2x the effort and time. Moreover, it takes time and effort to even train a software engineer, and get them up to speed on internal languages and systems, once they are recruited. Other than this too, there are many hidden costs when a company gets rid of a skilled worker. So it is a big no for firms to go down that road.
How Software Engineers Can Prepare Themselves For The Recession/Layoffs?
The job market is highly dependent on the industry and location. For example, if you are in Silicon Valley with an ample amount of skilled talent available around, chances are your job is not recession-proof. Other than that, if you are employed in a sector that is progressing such as AI/AR, cyber security, blockchain, etc. then you are more recession-proof than others. On the other hand, Crypto, Social Media, and P2P apps/collaboration products are taking a hit, and companies in these sectors are laying off engineers rapidly.
But there is no harm in taking extra measures to secure your future.
Here are 3 Ways You Can Recession Proof Your Software Engineering Career:
1. Don’t Switch Job Without Proper Reasons and Plans
If you are currently employed with a steady employer, decent package, and fairly workable KRAs then you must tighten your grip there. Because even if you have an offer in your hand, in this economy you can not trust anyone, many companies have been rescinding offers and suddenly turning their back even after several rounds of excellent interviews. So you must build a network of good sources and trusted folks in the industry. You can start with your current manager. Your manager is the one who can make or break your case in any situation.
2. Hone New Skills and Make Yourself a Brand
You are a quality software engineer but now you need to be more. Pick up some resources online or indulge in other areas at work to master at least the basics of non-engineering roles. Project management, planning a backlog and scrum mastery can go long way with your career. Something to think about…
Skills like cloud computing, blockchain, Web 3.0, DevOps, etc. never go old in any economy because companies will keep on shifting to the latest environments and tech stack for scalability and cost saving. In particular, DevOps professionals are responsible for the automation of software deployments and limiting disruptions in current infrastructure, aka helps in saving costs—useful especially in a recession.
Also, for instance, if you do not know cloud skills or have not yet worked with cloud-native applications, you should give it a try. You can start with understanding the basics and then gradually move towards advanced concepts and practical implementation. There are various standard online resources like GeeksforGeeks available out there that can surely help you to master any new skill or technology.
If you’re looking forward to building a career as a Software Engineer or SDE, and are in search of quality & reliable learning resources – then your search ends here at GFG! The Complete Interview Preparation Course by GeeksforGeeks is an interview-centric course and is designed to prepare you for the role of SDE for both product and service-based companies. This course is Mentored by Sandeep Jain (CEO, Founder of GeeksforGeeks) having 10+ yrs. of teaching experience.
This course is meant for everyone whether you’re a graduate or fresher, a working professional, or from Non-IT background. Here, you’ll begin with the basics and move on to advanced concepts of programming languages, concepts about OOPs, DSA from basic to advanced, OOAD Concepts, and other important CS subjects like OS, CN, DBMS, etc, along with building quality projects to ace the interview, aptitude & reasoning, and resume building strategies!
3. You Also Must Diversify Income Sources via Freelancing
Do you have a portfolio website, LinkedIn profile, or GitHub profile? If not then make one to get ahead of other engineers in the market. Fiverr, Upwork, and Freelancer are a few of the sites you can scout freelancing or contractual work from.
Also Read | 9 Ways to Become a Successful Freelance Programmer
Conclusion:
Although, there is no pinpoint answer to the question – are software engineers recession-proof or not? – there are a sure number of ways like upskilling, freelancing, growing professional network, etc. to secure your career. All you need to do is explore all these, find ones that’ll work for you, and get at those. Most importantly, stay up-to-date with current trends, skills, technologies, and applications to know when to shift the gear. We hope you are recession-proof and stay recession-proof.