In every layoff, everyone hopes it is the other person, because everyone was hired for a particular reason and the hiring people believed the person would make a significant contribution to the company. However, when companies announce layoffs, it is a numbers game and often times good people are let go. It is the hope of the company letting people go, that the people laid off will go to other firms and make a contribution and maybe the new firm allows the person to shine more than they were at the old company. Sometimes it actually happens.

In an article by Alexandra Olson of the Associated Press, the thousands of people who were laid off by tech companies are being courted by hotel chains, retailers, investment firms, railway companies and even the IRS. All those sectors are hiring software engineers, data scientists, and cybersecurity specialists despite the layoffs of Big Tech.

The biggest employer is the US government because they need to strengthen cybersecurity defences, and modernize the way they deliver benefits and collect taxes. The federal government is aiming to hire 22,000 workers in 2023.

According to CompTIA, a tech trade group, federal, state and local governments tech postings soared 48% in the first quarter in 2023 compared to the same period in 2022. In the tech industry postings are down 33%.

Why? according to Ray Dalio, in a talk at Goldman Sachs, if you think before the Apple iphone, nobody had a mobile selling strategy. Since the invention, if a company does not have a mobile phone strategy it is not likely in business. (Mr. Dalio’s Bridgewater Associates spends a great deal of time determining what inventions or innovations will add 3% plus market share to companies). (a number of years ago, working with institutional clients, they dealt with everyone but at the top of the list the allocation could go slightly higher, it was a fight to ensure an extra 3% market share).

The unemployment rate for tech talent remains tight, with an unemployment rate of 2%.

Abbott Labs, the Chicago based global health company is expecting to hire hundreds of software engineers, data architects and cybersecurity analysts over the next few years.

Jonathan Johnson, CEO of retailer Overstock has seen a 20% increase in applications for job openings.

The tech workers who were working in big tech are now looking at the government because although no one strikes in rich, stable jobs, a pension and the possibility of working on many different types of issues are drivers to apply.

Hilton hotels saw a 152% increase in applications to internships and full time jobs from tech majors on Handshake (a leading career site for college students and graduates) compared to last year.

Linking to dividend paying stocks, we all know in the knowledge based economy some skills are in higher demand than others, including tech workers. Determining where they are going to work can help see what companies are meeting the expectations of customers better. If expectations are met, customers tend to be repeat customers and that leads to continuing making profits to pay dividends. Those industries which are not high profile, must play catch up, but knowing the economy moves in cycles, they have an opportunity. Do the companies you have invested in, are they seen as a great place to work and good talent goes there?

There are more questions than answers, till the next time – to raising questions.