Shift Your Perspective: A Positive Outlook for Tech in 2024
There’s no denying it – 2023 has brought its fair share of challenges. With approximately 10,000 tech layoffs in Europe during the first quarter, we’ve had heart-to-heart conversations with candidates navigating the competitive job market and clients having to do more with less.
Amid layoffs and talks of AI replacing everyone, we thought it would be a great time to shed some light on the positives. So, building on insights from the 2023 State of European Tech report (and sparing you a 258-page read), here are some highlights to help you kick off the new year on a positive note:
📉 Fewer Layoffs
- In 2023, tech layoffs in Europe accounted for 10% globally. The worst seems behind us, with layoffs peaking in January and now stabilising.
💰 Robust Funding
- Europe is on track to raise $45 billion in capital in 2023, standing out as the only region globally experiencing long-term growth, with an increase of 18% compared to 2020.
🚀 Tech Expansion
- Close to 3,900 growth-stage tech firms are positioned to become the next generation of global category leaders, with this number set to double in the next five years.
👨💻 Talent Boom
- Despite challenges, there hasn’t been a mass exodus. The tech workforce in Europe has grown from just over a million to more than 2.3 million in five years.
- Surprisingly, Europe is also gaining talent from the US.
🌍 Sustainable Investments
- Amid climate change concerns, the Carbon & Energy sector attracted 30% of all capital invested in European tech in 2023, tripling its share since 2021. It’s great to know that even in challenging market conditions, investment is going into what matters most.
🤖 AI Job Creation
- Over the past decade, Europe’s AI talent base has grown over 10x, with more than 120,000 skilled professionals in AI roles.
- Europe now boasts more active AI roles than the US.
🌱 Startup Resilience
- Despite a 50% dip in total startup capital since 2021, Europe’s long-term funding outlook remains positive.
- This year’s decline in start-up formation can be attributed to a reduction in first-time founders.
- However, with the share of repeat founders remaining stable, we remain optimistic that these experienced entrepreneurs will be ready to tackle the challenges of raising money, attracting talent, and winning customers in this new environment (plus, Europe now outpaces the US in creating startups).
With positive trends on the horizon, 2024 will present many opportunities in the tech space, which will naturally impact the hiring landscape. Contact us if you’re looking for top-tier talent or are exploring new opportunities. We’re here to guide and support you every step of the way.