Sanjeev Malhotra’s Post

Shoutout to all the 👩💼 Founders, 👨💼 Engineering Managers, 👨💻 CTO’s! 🚀 The latest GDP figures are the slowest in 30 years, and talk of the current per capita recession in AU would suggest that we are at the bottom of the cycle, or very close to it 📉 Tax cuts are coming, and there is more talk of several RBA interest rate cuts in 2024. There is also talk that the US will have to bring cuts forward due to stress on its regional banks. All signs point to economic stimulus not being too far away 🎉 I remember October 2020 like it was yesterday! Our phones started ringing off the hook with Founders, Engineering Managers, and CTO’s looking for tech staff… to the extent we needed to grow our own team to keep up with demand. Why was this? Essentially, lots of Gov stimulus and monetary liquidity causing the demand to outweigh supply. Through my own lens, I haven’t seen much “new” senior tech talent enter the market in the last 18 months, and I’m quickly seeing the talent that has sadly been made redundant being scooped up quickly 🔄 Tech talent demand is not going to have to pick up much (I’m not suggesting 2020 will repeat), but given tech supply looks about the same, it won’t take much to set the stage for the next “fight for talent” between companies 💼💥 Hyre have access to a community of Tier 1 talent across Engineering, AI/Data and Cloud Infra, that are open to hearing about new opportunities. If hiring in 2024 is potentially on the cards, get ahead of the inevitable “fight for talent” and get in touch for a chat 💬 0410429762 / [email protected] 📞 #devopsengineerjobs #softwareengineerjobs #aijobs #cto #founders #headofengineering

Today's Fed rate cut is likely to have a positive impact on the US tech job market (hypothetically). Here's why: Stimulates Economic Growth: Lower interest rates can stimulate economic growth by making borrowing cheaper for businesses. This can lead to increased investment, expansion, and job creation in the tech sector. Boosts Stock Market: Lower interest rates often boost the stock market, particularly tech stocks. This can lead to increased valuations of tech companies, which may incentivize hiring and investment. Reduces Financing Costs: Tech startups and smaller tech companies often rely on loans and venture capital for funding. Lower interest rates can reduce their financing costs, making it easier for them to grow and hire. Consumer Spending: Lower interest rates can also lead to increased consumer spending, as people may be more likely to borrow for purchases like electronics and gadgets. This can benefit tech companies that produce consumer-facing products and services. However, it's important to note that the impact of the rate cut on tech jobs will depend on various factors, including the overall economic conditions, the specific sector within tech, and the individual company's financial health and growth plans.

Good morning. It's Friday, Aug. 2, Markets: the stock market has serious whiplash. After Wednesday’s rush to greatness, stocks dragged yesterday alongside a sell-off in tech as investors awaited today’s jobs report. But Meta bucked the trend, impressing with better-than-expected advertising revenue. Today’s jobs report is a big ’un Fresh employment numbers coming out this morning are expected to provide economists with more receipts in the debate they’ve been having for weeks: Is it time to cut interest rates before the cooling economy cools too much and triggers a recession? In case you’ve been plugging your ears: The American economy is actually…doing well, for now. That may feel wrong against a backdrop of stagnating wage growth and rising costs of living (though grocery inflation is finally settling), but the numbers don’t lie: The Federal Reserve’s historic interest rate hikes have reined in inflation from over 9% in 2022 to 2.5%, according to The New York Times—just above Jerome Powell’s 2% target threshold for rate cuts. Today’s Labor Department report is expected to show that the US is still adding jobs, marking the 43rd straight month of workforce gains. The employment growth rate is also projected to continue slowing, which is a good thing: A market with more job openings than applicants fuels inflation because companies are pressured to stay competitive by offering higher wages. The Looming Threat Of Economic Mediocrity According to the World Bank, 108 countries across the globe are at risk of getting stuck in the “middle-income trap.” Those nations, which include China, India, and South Africa, are supposedly relying on outdated economic strategies as they seek to become advanced economies, and will soon find themselves stuck with per capita incomes hovering around 10% of U.S. levels, or $8,000. Since 1990, the bank says, just 34 middle-income economies have been able to grow into high-income economies. Intel announced it’s cutting 15,000 jobs, or 15% of its workforce, as it falls behind in chip manufacturing. Walmart issued an employee relocation mandate. The retail giant will require thousands of workers to move to its main office hubs — or lose their jobs. Johnny Cash is the first musician to get a statue in the U.S. Capitol. Cash has walked the line to statue status, and the large bronze sculpture will be unveiled in the Capitol’s Emancipation Hall in September. Olympics update: In addition to Simone Biles winning her sixth gold medal in the women’s gymnastics all-around competition, Katie Ledecky set a record for the most medals won by a female swimmer when the US earned silver in the women’s 4x200 freestyle relay. The US ended Thursday with a world-leading 37 total medals but was second behind China in golds. "Art would not be important if life were not important, and life is important." - James Baldwin “If you don't have time to do it right, when will you have time to do it over?” – John Wooden

📉 **Navigating the Current Market Liquidity and Inflation Crisis** 🌍 The global financial landscape is grappling with significant challenges as LIQUIDITY CHALLENGES, AI DRIVEN JOB CUTS, HIGH INTEREST and INFLATION rates continue to impact economies. Central banks worldwide are taking aggressive actions to balance economic stability with inflation control. For instance, the Federal Reserve raised interest rates to a range of 5.25% to 5.50%, the highest in over a decade, and the European Central Bank has similarly tightened its policies. ### Key Points: 1. **Economic Impact**: - **Inflation**: Persistent inflation rates, hovering around 8% in the US and similar figures in Europe, have led to increased costs of goods and services, squeezing consumer spending power. - **Layoffs**: The tech sector, in particular, has seen significant layoffs. Meta has cut over 10,000 jobs, while other tech giants like Google and Amazon have also announced reductions in their workforce due to economic pressures and a shift towards AI-driven efficiencies. 2. **Strategic Financial Moves**: - **Acquisitions**: Corpay's purchase of Paymerang for $475 million highlights the demand for automated financial solutions . Huge investments by Top consulting firms like EY and PWC n all tech n global giants shows robust shift of market n job hiring trends towards AI proficient individuals. - **Market Trends**: Mergers and acquisitions in the tech sector have decreased in value, with total spending on tech M&A falling below $300 billion in 2023. However, there's optimism for a rebound in smaller transactions in 2024. ### Suggested Solutions: 1. **Diversification**: Companies should diversify their supply chains and investment portfolios to mitigate risks associated with inflation and economic volatility. 2. **Technological Adoption**: Embracing AI and other technologies can improve operational efficiency and reduce costs, although it must be balanced with careful workforce management to avoid large-scale layoffs. 3. **Financial Health**: Businesses and individuals should focus on maintaining strong financial health, optimizing cost and revenue optimizations, prioritizing savings and prudent investment strategies to weather economic uncertainties. As we navigate these turbulent times, staying informed and adaptive is crucial. The convergence of liquidity crises, inflation pressures, and strategic financial maneuvers presents both challenges and opportunities in the global market. #Finance #Economy #Financial and #Industry insights #Inflation #AI #MarketTrends # #MergersAndAcquisitions

Our current economic landscape presents a sobering reality: a 'robust consumer spending economy' is masking the largest consumer debt bubble in history. As repo's surge to all-time highs and consumer credit debt skyrockets, coupled with absorbent college debt and stagnant wages, signs of a silent recession loom large. Amid high inflation, rising interest rates, and looming layoffs, the only glimmer of hope appears to be the current 'strong' employment rate. However, the data suggests that we will see a significant uptick in unemployment in the near future as consumer spending slows down and corporations are forced to lay off employee's. For real estate investors, now is not the time for FOMO (fear of missing out). This impending correction will reward patient and well-informed investors with substantial wealth in the long term. Stay vigilant and prepared for the shifting market dynamics ahead. Opportunity awaits the astute investor. #EconomicInsights #RealEstateInvesting #MarketTrends

Markets are not infallible. To my mind, markets are just an aggregation of human reactions to news events. Humans are emotive, especially when it comes to the intersection on news and money. Last Friday saw a soft employment report in the US, the ‘market’ (read human) reaction was to sell-off as a recession was imminent. Yesterday saw a strong employment report, the ‘market’ reaction was to buy as we have surely dodged a recession. Below is a chart from Torsten Slok at Apollo which shows that the level of job cuts in the US remains very low, suggesting that an increase in unemployment claims may be more to do with increased immigration than decreasing economic activity. Emotive reactions and complex data do not make for a solid investment strategy. Investors do better when they tune out the noise.

Fed didn't cut rates today, but macro effects impact the tech job market more than almost anything else. Here are 3 impacts: 1. Interest rates & inflation Fed interest rate hikes combatting inflation made raising capital expensive and led to declining valuations for tech companies and less ability to fund growth through hiring. Most people know this. 2. New tax laws The Tax Cuts and Jobs Act regulation that went into effect for 2022 made employers take a bigger tax burden upfront. They are not able to deduct software development salaries from taxes all at once, but having to spread it over 5 years. This decreased their bottom lines overnight with higher tax burdens. Less money is then available to pay for employees. 3. The broader economy and job market We are seeing early signals of a broader job market recession right now. The Fed said they still plan to cut rates 3 times this year, but inflation isn't under full control and there are positive economic signals outside of poor household jobs surveys and more people taking on part time instead of full time work. Anyone looking for a job today even outside tech knows that there is a tough job market out there. If this becomes a job market recession... 1/ salaries will dip 2/ consumer demand for goods will drop as they have less disposable income, 3/ revenues at tech companies will get hit A recession for all is a recession for tech, even if the stocks won't get hammered as badly as the hiring market. Read more about the tech job market and some tips as a candidate in my latest Top Tech Newsletter.

Amid other news, the stock markets engaged in a mass sell-off this week, following the US jobs numbers being released, and showing lower-than-expected growth. Should we be worried? According to this article in the FT, not really. https://on.ft.com/3Yzlrgr - US is already approaching full employment, so the jobs slowing down is not surprising. - While debt default is on the rise, it is still nowhere close to the levels seen in 2008. - Finally, lots of scope for interest rates to be reduced, to give the economy a boost as needed. Nonetheless, definitely for recruiters operating stateside, now is a time for caution... Vacancysoft