Crypto Job Paradox: Lower Salaries, Stable Demand And Indifferent Workforce
It is a logical cycle; there is demand for a new technology, not many people know of it, those who do get involved and are handsomely rewarded. Take for examples Tanks, post World War I German military had none. A young lieutenant Heinz Guderian still studied them and so when Germany did get a Tank Corp, he was considered an expert and promoted to a General. One would have imagined knowledge of Blockchain would follow a similar rationale.
When Cryptos burst into public consciousness in late 2017 and early 2018, many companies naturally took interest as they saw the potential benefits and began to explore it. By making use of this blockchain technology not only could they streamline processes the distributed ledger technology (DLT) could well be used to cut out operational costs and at the same time make transactions clearly visible. Thus the demand for a technical workforce grew rapidly. That has come to an end with the market crash of November as a significant loss in salaries for blockchain jobs.
Declining Cryptocurrency Prices Causes Salary Drop By 40%
The free-falling price of blockchain-based crypto assets has naturally affected the Crypto job market. Compared to June, earlier this year the average salaries of most blockchain related jobs has dropped by around 40%.
Even after the boom had ended for the crypto market, in the second quarter of 2018, the demand for blockchain-related jobs was at an all-time high, with a 633% increase. Any and everyone from the expected firms in the IT services sector, fund & securities industries, and computer software industry to even gambling and pharma, were looking to recruit professionals with an idea about blockchain.
In their latest quarterly report, aptly named, 2018 Q3 Blockchain Industry Report published by the Tsinghua University along with BlockData stated that the blockchain market was sluggish.
The report noted:
“It is worth noting that ICO has also started to decline since March, and the entire market has gradually become more rational. The whole industry is paying more attention to its own development. As such the talent demand for core technological developer still far exceeds the supply. However, the demand for market and operation talent has decreased.”
Chinese Tech Giants Still Looking For Blockchain Professionals
Though pays might have been slashed, companies such as Baidu, Alibaba, and Tencent have made it known that still looking to recruit blockchain developers. In fact, in a noticeable trend, many Chinese fintech companies are looking to recruit people who have the expertise to develop blockchain-based solutions. As per CryptoGlobe, both the demand and supply of blockchain related jobs has remained more or less stable.
But where are the job seekers?
The bull run of December 2017 saw the prices of digital currency hit the roof, The subsequent media frenzy caused some to incorrectly forecast and plan towards the blockchain based future. This was especially true for the healthcare, logistics, and finance sectors, who began to look at use case scenarios for blockchain and distributed ledger technology.
However, as the employment site, Indeed.com pointed out in mid-November this year, while the job market was still warm there were fewer applicants interested in applying for crypto-related jobs. As a matter of fact, the online job searches for any crypto-related roles has dropped by almost 5 percent in the last one year. Even as the job seekers shy away, businesses continue to chase them. Specifically, the demand for DLT developers has shot up by more than 25% during the same time.
As the markets continue their unstable run, the blockchain talent market changes with it. An industry needs to hold on to its talent pool. While the numbers show that the core technology developers are still considered indispensable, low wages will certainly be a turn-off. Is this the start of a talent war or another cycle of offshoring jobs?