Product Management: An Inside Look at the 2024 Job Market
With numerous layoffs, an abundance of job seekers, and the continuous disruption from artificial intelligence, the current job prospects for product managers appear challenging. The tech market, in particular, is facing tough times. According to layoffs.fyi, in 2024 alone, 321 tech companies have let go of over 96,000 employees, more than double from earlier in the year. This spike is attributed to a correction from overhiring during the pandemic, rising inflation, and difficulties in raising capital. The product management field has also experienced tremors; many recall the stir caused when Airbnb’s Brian Chesky suggested doing away with product managers.
Chris Mason, CEO of Intelligent People, highlights a significant drop in vacancies and an overwhelming number of applications for each job posting. Companies still hire, but the oversupply of candidates forces job seekers to compromise on various aspects such as pay and job conditions.
Doing More with Less
Richard Sadd from Acquired Talent notes that organizations now seek broader skill sets post-overhiring. Higher expectations lead to increased competition among job applicants. Many in the product field report increased responsibilities with fewer resources, while businesses are cautious about investments. Chris Mason advises early career product managers to secure any job to gain experience rather than searching for the perfect role.
Challenges for Junior Product Managers
The current climate poses significant hurdles for entry-level product managers. Some product leaders express concern that AI, although enhancing productivity, reduces tasks traditionally given to junior staff, thereby limiting learning opportunities. Research indicates that while senior product managers maintain high productivity with AI, their junior counterparts struggle to match quality standards. AI tools can assist, but cannot replace the foundational skills required in product management.
AI at Work
Reports like Microsoft and LinkedIn’s Work Trend Index reveal that a significant portion of the workforce is already integrating AI into their roles. A majority of leaders prefer hiring candidates with AI skills, even if they lack traditional experience, suggesting a shift in the job market dynamics. Stuart Winter-Tear from Genaios argues that while AI can automate many tasks, critical thinking, context understanding, and decision-making are areas where human product managers must excel.
Critical Thinking Takes Center Stage
For product managers, honing critical thinking skills is paramount. They must act as facilitators and translators between different business elements to remain relevant. Remote working trends further complicate the landscape for newer employees, depriving them of casual mentoring and essential networking opportunities.
A Success Story
Despite the bleak outlook, there are success stories. Katelin Wall found a new role at Bentley Systems after an intensive 14-week job search, illustrating that perseverance pays off even in tough markets. Networking and temporary consulting work provided her with much-needed support during her job hunt.
What are your experiences in the product management job market? How have you improved your skills and job prospects? Share your journey with us.