The startup job market in Europe is down 40% since the start of 2022, according to new data from VC firm NGP Capital.
The report found that the number of job openings peaked in February and has continued to decline since then.
The UK performed slightly better than the European average, with a 38% reduction in job openings over the period. Since June, however, UK startup job openings have declined rapidly.
Analyzing 11,000 start-ups, the study found in February that around 15,000 new openings were being announced per week. The latest figures available show that the number fell in June to 8,813 per week.
The largest decrease was in the number of consumer-focused start-ups, with a 58% decrease. The number of B2B startups decreased by 40%.
The study also found that startups at the Series A and B stages dropped significantly more than later stage companies to hire. The reduced hiring was seen across all types of roles found in startups, including operations, technology and sales.
Many notable British tech start-ups, incl HoppinZapp and Zego, making job cuts amid the economic downturn.
“Jobs and employment opportunities are only one indicator of the health, growth and viability of a start-up; but the decline seen across all markets is dramatic, especially as the cost of living increases,” said Bo Ilsoe, managing partner of NGP Capital.
“The speed at which hiring in the private market slowed following the public market reset is unique. It’s clear that startup founders are slowing their recruitment and doing their best to make sure their businesses see through the current uncertainty.”
Despite what Ilsoe described as the “bleak picture” being painted by the new data; the investor noted that “adversity often breeds innovation”, so this downturn could lead to the rise of new and emerging startups.
“The current situation will provide many opportunities for well-positioned start-ups to grow and overtake less successful competitors. Companies, which have already raised capital and have more than 24 months of runway, will be in a good position and can now hire top talent from any region,” said Ilsoe.
European startup job openings drop by 40%
Source link European startup job openings drop by 40%