Will Hiring for Software Engineers Change in 2024?

The last half of 2023 has been pretty rough for the software industry and hiring for engineers and developers. Many people looking for jobs, either their first job as a junior, or anyone else looking to make a move, will easily tell you how difficult and time consuming the process is in 2023. Many people end up applying to hundreds, or at worst, thousands of places, with little to no results. Some of that could be on them for various reasons, but the industry as a whole has been pretty stagnant. With federal interest rates climbing earlier in the year and hasn’t gone back down since, borrowing has dried up for most companies, and so many companies have frozen hiring, and/or has had rounds of layoffs. All of that spells a rough hiring process for everyone.

What hiring of engineers about 2024?

Now that we’re near the end of the year, and it’s past Christmas, but not yet New Years in 2023, most team and company budgets are done for the fiscal year. Most teams and companies are waiting for their new budgets to open up in 2024. So that alone will likely open up more opportunities. But there’s also the Federal Reserve is expected to lower interest rates in 2024, and possibly more than once over the course of the year.

That means that borrowing will be more attractive, so companies will look for more funding. That means investors will be more eager to invest, allowing for more companies to get larger pools of money. That always translates into more hiring!

So all of those signs point to a healthier software engineering hiring in 2024.

 

References:

• https://www.investors.com/news/economy/federal-reserve-is-set-to-slash-interest-rates-in-2024-but-lets-get-real
• https://www.reuters.com/markets/rates-bonds/higher-forever-markets-see-few-rate-cuts-after-2024-2023-12-29/
• https://www.cnbc.com/2023/12/13/fed-interest-rate-decision-december-2023.html