Companies in several different industries are rescinding job offers they made just months ago, in a sign that the tightest job market in decades may be showing cracks.
Companies including Twitter Inc..
real estate brokerage redfin corp.
and cryptocurrency exchange Coinbase Global Inc..
have rescinded deals in recent weeks. Employers in other pockets of the economy are also withdrawing offers, including some in insurance services, retail marketing, consulting and recruiting.
At the same time, many companies have signaled a more cautious approach to hiring. netflix inc..
Peloton Interactive Inc..
and others announced layoffs. Tech giants including Facebook parent Meta Platforms Inc. and Uber Technologies have warned they will reverse hiring plans.
The labor market remains strong overall, with the unemployment rate at 3.6%, close to the half-century low it hit in early 2020.
But these signs of caution in hiring show that executives are finding it harder to predict the next 12 months in the economy, hiring managers and recruiters say. When a company revokes a job offer, it indicates that a company’s business outlook has changed so quickly that it has to undo hiring plans made sometimes weeks in advance.
“I just couldn’t believe what I was hearing, like it was a job I’d had booked for months and was really counting on it,” said Franco Salinas, 24, who learned this month that a data analyst position he planned to start in July it had been cancelled. “This made me realize how fragile things are.”
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some recruiters warns that there has not been a huge wave of canceled job offers. At the same time, employers are still unable to find enough workers for many types of jobs.
However, “going from zero to a fairly small amount seems like a big increase,” said Brian Kropp, vice president of human resources research for the consulting firm Gartner.
He said rescinding a job offer was almost unheard of six months ago. “If we’ve learned anything from the last two years, it’s that things can change quickly,” she said.
Mr. Salinas is one of many recent college graduates who landed a job while finishing school. Information technology consultancy Turnberry Solutions offered him a data analyst job in Minneapolis in October. As an international student from Peru, he said he had passed other offers to accept Turnberry’s. Having obtained the employer-sponsored visa required to stay in the country, he felt confident signing a lease and making other plans.
The firm has asked to rescind the offer this month. A Turnberry spokeswoman confirmed that two offers for data analysts had been rescinded, though the company says it is still hiring for other skill sets.
“We did not take the decision to terminate the offers lightly,” the spokeswoman said, adding that the firm had paid the two consultants two months’ rent to help compensate. “Periodically we need to adjust the skills we bring in given changes in demand from our clients.”
Other companies attribute the canceled job offers to the fallout from a tech industry downturn, including the company that made an offer to Jenna Radwan in May. He rescinded the offer two weeks before its June start date.
Hirect, a chat-based app focused on tech recruiting, wowed the 21-year-old with a starting salary of $80,000, plus the promise of an unlimited $195,000 minimum commission and the flexibility to set your own hours. Ms. Radwan felt confident enough to turn down three other jobs and withdraw from three additional interview processes, she said.
“They gave me a hard deadline, so I said, ‘I’m going to go ahead and take this and go with my gut,'” he said.
As he was getting ready to get started, the recruiter sent him an email: Hirect was withdrawing the offer and placing a hiring freeze due to drastic and unforeseen changes in market conditions.
“We have not been immune to these recent challenges, nor to the considerable tightening of the belt that is taking place across our industry,” a Hirect spokesperson said of a recent slump in tech hiring that prompted the company to rescind two job offers. worked.
Ms. Radwan is proceeding more carefully in her renewed search for a marketing, sales, or account management job. She plans to complete all hiring processes before accepting any offer, even if it means asking for more time to decide, she said.
“I didn’t even know this kind of thing could happen,” he said.
Other abandoned job seekers say they are also approaching their new searches differently. Raleigh Burke accepted a claims analyst job at a Los Angeles-based insurance brokerage in May, gave notice at his old job the same day, and then flew to Hawaii for some rest. When he got home, his offer had evaporated without explanation. She was surprised, she said, because she had been told that she was the leading candidate.
Ms. Burke, 35, had turned down an offer with another company to accept this one. “So what do I do, go with my tail between my legs and crawl backwards?” she said. The next time she’s looking for a job change, she said she may not quit until she receives a laptop from the new company or begins her onboarding process.
For now, many hiring managers say hiring new employees remains highly competitive. A Gartner survey of more than 350 HR executives in late May found that about 50% thought the competition for talent would increase in the next six months. Nearly two-thirds said they had not made any changes to their hiring practices or human resource budgets in response to economic volatility.
While startups, companies in the ad tech industry and pre-IPOs may be less stable right now, it’s still a market for job candidates, said Keith Feinberg, senior vice president at the firm. of professional staff Robert Half. Still, he said he wouldn’t be surprised if job seekers are evaluating some opportunities more cautiously than they were a few months ago.
Steven Pope, 32, was supposed to start a new job as chief data officer for a retail marketing company after Memorial Day weekend. Instead, he is looking for work again after his start date was put on hold indefinitely. The company told him that a long-awaited funding round had been delayed, he said.
Pope now accepts as many interviews as he can, he said. He is also rethinking the kinds of opportunities he is willing to consider.
“I’m looking at how these companies get supported or paid for,” he says, adding that his friends in tech are starting to prioritize their own searches differently. “I see there’s already a little change where safety is going to come before compensation.”
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