Is America's Tech Industry Already Facing a Recession? (msn.com) 8
America's unemployment rate for tech jobs rose to 4% in November, and "has been steadily rising since May," reports the Washington Post (citing data from the IT training/certifications company CompTIA).
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...."
The unemployment rate in the tech industry still sits below the national rate, which in November 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."
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."
The unemployment rate in the tech industry still sits below the national rate, which in November 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."
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."