With Twitter laying off more than 50% of its workforce, Meta more than 13%, and a freezing job market, it is evident that it won’t be easy for fresh engineers to bag a job, leave alone a well-paying one. Currently, the world is witnessing a huge surging market trend of layoffs. While some companies like LinkedIn, have declared that they may not opt for layoffs but hiring freezes are sure to happen. Unemployment alongside the production of mass engineers each year may lead to a dire situation for the job market.
Thus, is it wrong to say that the fresh engineers preparing and waiting to be a part of the workforce, are up for some serious challenges? Maybe not. The reasons may be various, from the post-pandemic economic decline, the US getting involved in the Russia-Ukraine war to technological advancements. But the point is, when it is about earning and living a credible life, young engineers must not refrain from achieving their dreams, no matter what the economics says.
They must be aware of the causes of the present job market scenario and also the ways they can battle to keep their heads up above the surface. This article further discusses the points which might be beneficial for you as a fresh pass-out engineer.
Causes of layoffs and freezing job market
1. Cost reduction
The first and foremost reason for layoffs is mostly the cost reduction measures taken by the company. This may be due to some business debts, fewer sales, lack of financial backing, and others. Elimination of employees is a money-saving policy in which the funds are used elsewhere.
Two companies merging may cause existing redundant positions. To eliminate duplicate positions and introduce new ones, often mergers mean several layoffs within the newly formed company.
When one company buys another, new leadership, new business strategies, and changes in business policies are to be expected. This may result in employee layoffs. Also, to remove duplicate positions and cost curtail, layoffs may seem a necessary step.
4. Outsourcing opportunities
Most companies nowadays opt for outsourcing due to the high costs in hiring and retaining employees. Paying an employee comes with health benefits and other insurance that add up to the cost of maintaining an employee. This is a cost curtail measure that is often adopted by companies with stringent funds.
5. Loss of funds
A marginal decrease in sales or investors taking back their support may cause a depletion in profits for the company. If the company is not in a financial position to pay off employees, then layoffs are a reasonable step to be taken.
6. Advancements in automation
The rapid advancement of technology and the introduction of new forms of automation now and then is a major cause of the reduction of employee requisites. While this may open up new opportunities, it is bound to see major layoffs.
Things that young engineers should do to secure a future
1. Make a credible resume
A resume walks before any professional. It is the first impression that a professional makes on recruiters and is the ticket to land in the professional world. If the resume is not approachable or not strong enough to acquire attention, then there are high chances of rejection even before there is a call for an interview. In such cases, points like the structure of the resume, the aspects that are to be and are not to be highlighted and the overall presentation of it matter greatly. It must be made sure that the resume is a strong representation of the professional credibility of the candidate.
2. Strengthen your networks
Apart from signing in to job portals, word of mouth and referrals are a great way to stand strong on the ground. Most employers depend on word of mouth when it comes to hiring. If an engineer can produce a channel that will vouch for his good record, he may land ahead of the other competitors. Thus, expand your networks by growing your contacts and maintaining a good rapport with professionals who are already working in the field, to gain an advantageous position whenever there is a rise in opportunity.
3. Hone your skills
No skills, no gain. There is no use of a strong resume and reputation if you do not have the right skills for a given opportunity. This is the truth behind 80% unemployment among engineers in India, that they are not correctly skilled to match the job market requirements. This skill gap is an enormous issue and can be managed with conscious acquiring of the skills in demand. If you want to positively impact your employability factors, then keeping up with the technological advancements and introducing yourself to the diverse array of new roles is the only way to ace the job market.
4. Build a reputation
Another way to enter the professional world is through temporary or part-time jobs. Temporary or contractual jobs are easy to find and are mostly available to the mass. Opting for a temporary job means that you have created an entry point in the professional world and now you can use this opportunity for climbing up the steps. Build a credible reputation as a good employee while working in a temporary job so that you can use it further to get your dream job.
5. Keep your expectations low
When layoffs have become the new trend and there is a high possibility of a freezing job market, then expecting to land your dream job on the very first instance might cost you dearly. If your dream is to build a rocket, then you must start by tightening the nuts. Considering the market is not very welcoming in the current scenario, you must go ahead with any opportunity that is laid in front of you.
Above all other things, you must be patient. You must be in a hurry to join the workforce but the reality of the present job market is not all roses. While there are mass layoffs and freezing markets, there are always various ways that you can strategically carry out to gain that dream job.