How is the tech job market looking? Unfortunately, not so great. Tech hiring took a dip after the Federal Reserve began aggressively hiking interest rates earlier this year, a new analysis from ZipRecruiter suggests. The Fed has raised rates six times this year, including four 0.75-percentage-point hikes in the key rate starting in June. That has pushed the short-term borrowing rate to a target range of 3.75% to 4%, making car loans and credit-card debt more expensive. It also makes it more difficult for high-growth stocks to deliver growth at the same rate as previous years.
The Fed’s actions have made it harder for the interest-rate sensitive tech sector, said Julia Pollak, chief economist at ZipRecruiter, a job search engine. The high interest-rate environment has made borrowing more expensive, and a strong dollar depletes the value of income from foreign markets. What’s more, high-growth tech stocks are vulnerable to rising interest rates, which reduce the value of future earnings. Shares of Facebook parent Meta Platforms Inc.
Google parent Alphabet Inc.
have all suffered after a string of earnings that disappointed Wall Street. The number of job postings for jobs in the technology sector on ZipRecruiter peaked in May with more than 1.9 million jobs, up 87% from February 2020 just before the coronavirus outbreak was declared a pandemic. But hirin …