Chapter 1

Employment Environment

Global Tech Talent Guidebook 2024

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The global labor market is evolving with the predominance of remote work, changing migration patterns and increased economic development. The global unemployment rate closed 2022 at 5.8%, according to the latest data from the United Nations’ International Labour Organization. The most current unemployment rates ranged from 0.7% in Warsaw to 10.8% in Bogota for the tech markets covered in this report. (Figure 1).

One reason for relatively low unemployment amid economic uncertainty is the reduced working age population, ages 15 to 64, that has trended down since 2012 (Figure 2).

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Figure 1: Unemployment Rate by Market (2023)

*2022
Source: Oxford Economics, Government of Mexico & Israel Central Bureau of Statistics (CBS), Statistical Office of Warsaw and other local government agencies, January 2024.

Figure 2: Global Working Age Population Share of Overall Population

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Source: World Bank, October 2023.

Among the powerhouse and established tech talent markets, Shenzhen and Montreal had the fastest working-age population growth of more than 3.9% between 2017 and 2022. (Figure 3).

Figure 3: Working Age Population by Market

Source: Oxford Economics, CBRE Research, October 2023.

Tech talent works in all industries but is most concentrated in the high-tech services & manufacturing sector, which includes software, cloud services, social media and computer hardware.

These sectors benefited from the pandemic-induced increase in online shopping and remote work. But as the pandemic eased by 2022, business conditions changed and many of the major tech companies began reducing their employee headcounts, according to publicly filed annual reports. Despite this, most of the major tech companies still have higher employee counts than pre-pandemic levels.

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Global economic uncertainty since mid-2022 has led to a rise in announced layoffs by the tech industry. Many tech companies over-hired when demand spiked for their products and services during the pandemic. Now that business conditions have changed, many have been forced to reduce headcounts.

Figure 4: Global Big-Tech Employment Growth

Note: Global employee figures do not represent net new jobs, since M&A activity can increase the number of employees in certain years.
Source: Macrotrends, SEC Filings, CBRE Tech Insights Center, as of Q1 of each year.

Tech talent layoffs have not been evenly distributed among global regions. Two-thirds of them announced since the pandemic have been by U.S.-based tech companies, according to data provider Layoffs.fyi, although some of these workers were employed in other regions.

For many markets, layoffs have returned the tech talent labor force to more normal pre-pandemic levels. In 2023, tech layoffs slowed considerably with the second half having 76% less than the first half of the year.

Figure 5: Global Tech Layoffs Since COVID Pandemic

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Note: Location data is based on company headquarters.
Source: Layoffs.fyi, January 2024.

Despite these recent layoffs, tech employment growth among North American markets over the past five years has ranged from 10.7% in Austin to 1.3% in Washington, D.C.

Figure 6A: High-Tech Industry 5-Year Average Annual Growth Rate* (2017-2022) — North American Markets

Note: compounded growth.
Source: U.S. Bureau of Labor Statistics, Statistics Canada, CBRE Research, October 2023.

All but three global markets (Sydney, Melbourne and Hong Kong SAR) have recorded tech employment growth over the past five years, primarily due to employment losses during the pandemic.

Figure 6B: Info & Communications Industry 5-Year Average Annual Growth Rate* (2017-2022) — EMEA, LatAm & APAC Markets

*Compounded growth.
Source: Oxford Economics, CBRE Research, October 2023.

Venture capital (VC) funding for up-and-coming companies is a barometer for the tech industry’s outlook. The tech industry traditionally attracts the most VC funding, accounting for more than half the global total since 2012.

CB Insights data indicates that global venture capital funding totaled $234 billion in 2023. Almost half of it was placed in North America, followed by 29% in Asia-Pacific and 21% in Europe, the Middle East and Africa (EMEA).