Is America's Tech Industry Already Facing a Recession? (msn.com)
- Reference: 0180427733
- News link: https://it.slashdot.org/story/25/12/20/0512216/is-americas-tech-industry-already-facing-a-recession
- Source link: https://www.msn.com/en-us/money/markets/a-recession-is-arriving-for-people-who-want-jobs-in-technology/ar-AA1SwJZo
> Between October and November, the number of technology workers across different industries fell 134,000, while the number of people working in the tech industry declined by more than 6,800. Tech job postings were also down by more than 31,800, the report found, citing data from the Bureau of Labor Statistics and California-based market intelligence firm Lightcast. "The data is pretty definitive that the tech industry is struggling," said Mark Zandi, Moody's chief economist. "There's a jobs recession in the industry, and it feels like that's going to continue given the slide in postings...."
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> The unemployment rate in the tech industry still sits below the national rate, which in November [2]hit 4.6 percent , the highest since 2021. However, that gap has been narrowing, with tech unemployment rising faster in recent months than is the case nationally.... Employers are largely in "wait and see" mode when it comes to hiring given the current uncertainties surrounding the economy and impact of AI, so they're likely to delay backfilling, Herbert said, citing CompTIA's surveys of chief information officers. But Justin Wolfers, professor of public policy and economics at the University of Michigan, said uncertainty is likely to continue in the foreseeable future. "I'm feeling substantially more pessimistic," Wolfers said, recalling that Federal Reserve Chair Jerome H. Powell recently suggested that federal job numbers may be overstated. "That's pretty grim."
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> Technology companies have announced more than 141,000 job cuts so far this year, representing a 17 percent increase from the same period last year, according to outplacement firm Challenger, Gray & Christmas. At the same time Big Tech companies like Google, Microsoft, Meta and Amazon have announced plans to invest up to $375 billion in AI infrastructure this year.
"AI is quickly becoming a requirement, with 41 percent of all active job postings representing AI roles or requiring AI skills, according to CompTIA's analysis," the article points out.
Economist Zandi tells the Post that "If you have AI skills, there seems to be jobs. But if you don't, I think it's going to feel like you've been hit by a dump truck."
[1] https://www.msn.com/en-us/money/markets/a-recession-is-arriving-for-people-who-want-jobs-in-technology/ar-AA1SwJZo
[2] https://www.washingtonpost.com/business/2025/12/16/jobs-report-unemployment-rate/
Is it a "recession" or is it profit taking? (Score:2)
Far as I can see, Tech companies are reporting record profits. According to the chart I'm looking at, 3 year returns are up by 140%, and 1 year returns are up by ~20%. (19.7 or so)
Looking at stocks (FANG), 3 are "STRONG BUY" with only Apple lagging at "BUY".
Remember folks, back when "Neural Networks" was all the rage, then all the jobs had requirements for experience in that. Then it was "Web 2.0" craze, and everyone needed that. I remember how excited the PHBs got when they joyously informed us that "We're
Re: (Score:2)
Software Developer jobs may rise in second half of 2026 when "normal" companies realize that that mass of poorly generated AI slop inside their Projects now getting real *users* is breaking, and maintaining that is more expensive than ever because no human had been involved in generating that thing.
Salaries for humans who *can* code will raise again.
Re: (Score:2)
2026 may be a bit too soon. First the circular AI economy bubble needs to burst, and that will cause a lot of demand contraction and businesses shutting down. I'd estimate about 4 years, let's say 2030?
Re: (Score:2)
It seems that leaving the AI bubble to fester until 2030, there will be no way to fix the damage it will do. Probably no cash to sustain it that long, too.
Pandemic boom and AI swoon (Score:1)
The combination of a pandemic hiring surge and the convenience of AI layoffs once companies realized many of the employees were not working out accounts for some of it.
Yes (Score:2)
How many times do we have say it the us economy with the exception of AI stock prices is in recession
Re: (Score:2)
No matter how many times you say it, it won't matter, [1]because you're not loud enough now [yahoo.com] and you'll be forgotten later.
Those damned surfers want to have big waves and bubbles and to ride them.
[1] https://www.yahoo.com/news/articles/tech-moguls-close-trump-see-190246768.html