The startup job market in Europe is down 40% from the beginning of 2022, according to new data from VC firm NGP Capital.
The report found that the number of startup job opportunities peaked in February and since then has continuously declined.
The UK performed slightly better than the European average, with a 38% decline in job openings over the period. Since June, however, UK startup job openings have fallen rapidly.
Analysing 11,000 startups, the study found that in February there were around 15,000 new openings being advertised per week. The latest available figures show that in June, the number dropped to 8,813 per week.
Consumer-focused startups saw the biggest drop in hiring, with a decline of 58%. B2B startups saw hiring drop by 40%.
The study also found that startups at the Series A and B stages dropped in hiring considerably more than later-stage companies. The reduced hiring was seen across all types of roles found in startups, including operations, tech, and sales.
Many notable British tech startups, including Hopin, Zapp and Zego, have been making job cuts amid the economic downturn.
“Jobs and employment opportunities are just one indicator of a startup’s health, growth, and future viability; but the decline we are seeing across all markets has been dramatic, especially as the cost-of-living increases,” said NGP Capital’s managing partner Bo Ilsoe.
“The speed with which the private market hiring slowdown has followed the public market reset is unique. Startup founders across the board are clearly slowing down their recruitment and doing their best to ensure their businesses see out 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 may give way for new and innovative startups to rise.
“The current situation will offer many opportunities for well-positioned startups to grow and acquire less successful competitors. Companies, who have already raised capital and have over 24 months runway, are going to be well positioned and can now also hire top talent from any region,” Ilsoe said.