Dirty impact of the Downturn on our IT job market
I was having a discussion with one of my friend last night. He is of the manager in a leading IT recruitment firm here in Australia. He actually mentioned to me, a pretty interesting and adverse effect of financial recession, in job market which i would like to share here.
We all aware of unemployment rate ticking up everyday, probably every month, with global economy effecting companies financial situation. Every organization is focusing on reducing their operating cost by all means, which can be achieved by reducing their travel, hiring freeze, overtime and various other expenses.
Most of them are achieving this by reducing employees, we hear almost everyday, X company made Y amount of employees redundant. I suppose, this is really a common and most upsetting news for all IT professionals.
My friend mentioned, which these effects on unemployment, he noticed some of the organizations are making their highly paid professionals redundant, giving reason that they no longer need this position or probably they don't think this position is bringing any benefit to the organization at this point of time. After some weeks or probably months, same organizations are advertising same position with half the salary and attracting unemployed IT professionals, who are willing to work for something rather then nothing.
I find this very interesting and obvious effect of financial recession where some organization are using this reason to bring IT job market price down and also to reduce their operation cost, yet keeping their same number of staff by paying them half the salary.