Yahoo Finance’s Allie Garfinkle joins the live show to explain why Twitter, Redfin and Coinbase are among the latest companies to cancel job postings.
BRIAN CHUNG: Well, unusual activity in the labor market as companies begin to cancel job vacancies at a high rate. Workers are apparently caught off guard, especially in technology. Yahoo Finance senior technical reporter Allie Garfinkle in the studio with breaking news. Allie, it stinks, first of all, for the people, I guess, who get these job offers. But who does that? And why is this happening?
ALLIE GARFINKLE: So first of all, Brian. Canceled job offers are very rare. Of all the HR experts I spoke to, they all said this rarely, if ever, happens. And when it does happen, it happens in extreme circumstances. So it’s really rare. And this is currently happening in three companies: Twitter, Coinbase and Redfin. And it happens a lot. And that’s been really significant, I think that’s happening in technology as well, because it means people are caught off guard even more. This is a sector that has seen massive expansion.
AKIKO FUJITA: I mean, having said that, there are sort of two scenarios playing out. On the one hand, we’ve heard about these big tech companies saying we’re going to cut hiring. And yet, we always hear that the demand for technology, whether it’s for software engineers, I mean, it’s still there. Have you spoken to people whose offers have been cancelled? And do they find other jobs waiting on the other end of the line?
ALLIE GARFINKLE: Yeah. Sounds contradictory, doesn’t it, Akiko? On the one hand, we keep hearing that the labor market is really tight. This is what the data continues to show us. But you hear about these canceled deals. I actually spoke to a gentleman for this story who had canceled offers from both Coinbase and Twitter. He was actually choosing between the two companies. And what happened is that within about two weeks, they both canceled those offers.
And he was– the thing that’s also really important is, A, it doesn’t just happen to people who are just out of college. I think that’s a misconception. In this particular case, he was actually quite a senior executive. Are they finding jobs? The answer seems to be yes. Everyone I’ve spoken to takes part in numerous interviews. There is always a demand for their work. It’s kind of a weird situation that repeats itself over and over again.
BRIAN CHUNG: Yeah. And I guess that could imply a broader trend where as we start to get maybe a little bit closer to a recession you start to see some of these high-growth companies saying we’re going to pull out of these Jobs. And maybe the victims are people who have almost crossed the finish line for some of these assignments. I mean how does this all tie into the overall story that we hear in tech companies that we’re just going to pull out some of these big projects or moon things that we were going to hire staff for because we’ve given priority to cash flow right now?
ALLIE GARFINKLE: I think that’s really insightful, Brian, because I think they’re completely inextricably linked. You have this moment when venture capital funding is really hard to come by, stocks are down, everyone is kind of in a scared moment and has to tighten their belts. So despite the fact that data from even a month ago, two months ago shows that the labor market is tight, we are in a very specific moment that has been playing out for two weeks. And I really think it’s completely related. High inflation and broader macroeconomic climate.
AKIKO FUJITA: Well, and what we keep hearing is that you just have to hold on right now. So that doesn’t necessarily mean those jobs won’t come back. Maybe in six months, those offers might be there.
ALLIE GARFINKLE: And that’s what these people hear too. Keep applying. Keep putting your name there. Someone will hire you soon.
BRIAN CHUNG: It could be a hiring freeze instead of just removing it altogether. Allie Garfinkle from Yahoo Finance, thanks so much for the breakdown.