Unemployment Ticked Up in America's IT Sector (msn.com) 36
IT sector unemployment "increased to 3.8% in April from 3.6% in March," reports the Wall Street Journal.
But they add that the increase reflects "an ongoing uncertainty in tech as AI continues to play havoc with hiring. That's according to analysis from consulting firm Janco Associates, which bases its findings on data from the U.S. Labor Department." On Friday, the department said the economy added 115,000 jobs, buoyed by gains in industries including retail, transportation and warehousing and healthcare. The unemployment rate was unchanged at 4.3%. But the information sector lost 13,000 jobs in April.
While it's still too early to say exactly how AI is affecting employment overall, some businesses, especially in the tech industry, have said it's part of the reason they're cutting staff. In April, Meta Platforms said it would lay off 10% of its staff, or roughly 8,000 people, as it seeks to streamline operations and pay for its own massive investments in AI. Nike will reduce its workforce by roughly 1,400 workers, or about 2%, mostly in its tech department, as it simplifies global operations. And Snap is planning to eliminate 16% of its workforce, or about 1,000 positions, as it aims to boost efficiency. In other areas of IT, which includes telecommunications and data-processing, employment is now down 11%, or 342,000 jobs, from its most recent peak in November 2022.
But there's not just AI to blame. Inflation and economic uncertainty linked to the Iran conflict is giving some chief executives and tech leaders reason to pull back or pause their IT hiring, said Janco Chief Executive Victor Janulaitis.
The article even notes that postings for software developer jobs "are up 15% year-over-year on job-search platform Indeed, according to Hannah Calhoon, its vice president of AI". But employers do seem to be looking for experienced developers, which could pose a problem for recent college graduates.
But they add that the increase reflects "an ongoing uncertainty in tech as AI continues to play havoc with hiring. That's according to analysis from consulting firm Janco Associates, which bases its findings on data from the U.S. Labor Department." On Friday, the department said the economy added 115,000 jobs, buoyed by gains in industries including retail, transportation and warehousing and healthcare. The unemployment rate was unchanged at 4.3%. But the information sector lost 13,000 jobs in April.
While it's still too early to say exactly how AI is affecting employment overall, some businesses, especially in the tech industry, have said it's part of the reason they're cutting staff. In April, Meta Platforms said it would lay off 10% of its staff, or roughly 8,000 people, as it seeks to streamline operations and pay for its own massive investments in AI. Nike will reduce its workforce by roughly 1,400 workers, or about 2%, mostly in its tech department, as it simplifies global operations. And Snap is planning to eliminate 16% of its workforce, or about 1,000 positions, as it aims to boost efficiency. In other areas of IT, which includes telecommunications and data-processing, employment is now down 11%, or 342,000 jobs, from its most recent peak in November 2022.
But there's not just AI to blame. Inflation and economic uncertainty linked to the Iran conflict is giving some chief executives and tech leaders reason to pull back or pause their IT hiring, said Janco Chief Executive Victor Janulaitis.
The article even notes that postings for software developer jobs "are up 15% year-over-year on job-search platform Indeed, according to Hannah Calhoon, its vice president of AI". But employers do seem to be looking for experienced developers, which could pose a problem for recent college graduates.
meh (Score:5, Insightful)
Re: (Score:2)
Yes. What it means is, despite all that offshoring, the job market remains strong in the US for tech workers.
Software engineers typically make 50-100% more than the median US income. Other jobs like QA and Product / Project management aren't quite as high, but still above average.
I think this tech job market feels bad because we got used to the white-hot hiring spree of 2021-2022.
Re: (Score:1)
I don't think people realize what is going on. The unemployment numbers are down not because people are finding work, but they are changing careers because they have been sitting on their ass since 2023/2024 with zero interviews. This happened in the early 2000s, except the press didn't lie their ass off with useless numbers that mean nothing.
It isn't like jobs are happening. People are just giving up. The point got hit home last December where people who were making 300k earlier in the year were compet
Re: (Score:1)
journeyman in HVAC can make 100k in a region, and a master electrician 200k
you're not wrong but even journeyman suggests like 5+ years in the field and a "master electrician" making 200k is probably a licensed contractor (which means a lot of education in itself to keep and maintain that license) and that's with 10+ years experience already or usually more
people glorify the trades and yes it's true theres quite a good living to be made there but this idea that a software engineer can just move onto a trade and start making the good bucks is as fantastical as people telling factory
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Re: meh (Score:2)
I make a lot more than that, and my commute is about 30 minutes (probably shouldn't also mention that my employer provides free ev charging, so my commute in my cheap, salvaged Tesla costs zero anyways.) I couldn't tell you what the place I live in is worth, but anybody who looked at it would tell you it isn't worth anywhere close to that. It's probably more common than you think.
You're thinking silicon valley, or at the very least, silicon valley companies. Which are interesting because they (e.g. Google)
Re: meh (Score:2)
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I started at $145k (which by the way, I only asked for $130k, and they countered with $145k, go figure) back in 2022 for just the base salary. Shares pushed that up to $209k. But just only thinking about base pay, $145k in 2022 dollars translates to roughly $163k today. Nevertheless, base pay has since risen to $175k, which is well ahead of the rate of inflation. The actual amount on my W2 has since risen basically on an exponential curve, due to the RSUs appreciating in value. Which is unfortunate, because
Re: meh (Score:2)
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You think $150K is bad pay? Oh my goodness you poor thing!
The median household income in the US is $80K. Any mid-level programmer who's half good at his job can easily get six figures. $100K is higher pay than 70% of people in the US. A senior developer can easily make 120-140K.That's the 90th percentile in the US. And you think because most tech workers earn less than $150K, the market for them is weak? I think you've been living in an imaginary world. Well, or maybe, California.
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Let's keep things straight here. Just because where you live, home prices are crazy high, does not make the job market weak. It means that salaries in your area are low compared to cost of living. That's an entirely different problem than a weak job market. In the rest of the US, a person with a median income can afford that house payment. In Houston, for example, a person with $90K income can afford a median home, which sells for $330K.
So you want to discuss income for those with college degrees. OK, that
GIGO (Score:4, Interesting)
"bases its findings on data from the U.S. Labor Department" and we have all seen just how reliable totally-not-manipulated data coming from this administration is.
Re: (Score:3)
There's not an agency in the US government at this point which doesn't drastically manipulate its data to fit either internal politics, or political party agendas.
Re:GIGO (Score:4, Interesting)
Only this administration? So, every other administration 1,000% told the truth?
Partisanship is dumb. The Uniparty are liars. (Score:1)
Re: (Score:2)
It's worse now. If it was a "shade of gray" before, it's very dark gray today.
1. August 2025: Trump fired BLS Commissioner Erika McEntarfer (a Senate-confirmed, bipartisan appointee) after accusing her (without evidence) of rigging jobs data after a weaker-than-expected July report.
2. September 2025: E.J. Antoni (Heritage Foundation economist with no qualifications in this field) failed in the nomination process due to lack of credibility.
3. January 2026: Trump nominated Brett Matsumoto. He is yet to be con
Re: (Score:2)
Government data has been bullshit since well before the mid 1990s when Clinton rejiggered the employment rate calculation.
I enjoy that a number of people are discovering that the government is generally full of shit. Of course, they still think it's JUST THAT GUY"S SIDE but eventually they may figure it out.
"reports the Wall Street Journal." (Score:3)
Then links to MSN and not WSJ.
Headline seems extremely deceptive (Score:5, Informative)
Yes, over the last month it ticked up from 3.6% to 3.8%. It peaked at SEVEN percent at one point in 12 months. The trend is unquestionably, wildly down.
Those are both the lowest readings in 12 months. It's been hovering near 5% all year. It's been consistently over the national average.
It's not under the average, very solidly trending down all year. But the headline is a .2% increase and noise about AI.
There's downturn in progress (Score:4, Informative)
You can't attack education, non-whites, non-MAGA, all your allies, enact random tariffs, and then disrupt the world's flow of oil, all while building a kleptocracy and expect anything but a major long term downward trend.
You can no longer trust the government numbers. They're lying, and anyone who won't lie gets fired. Unemployment is probably higher than they're telling you.
Re: I wonder how they are cooking the numbers (Score:3, Insightful)
Perhaps you should try Canada.
Re: I wonder how they are cooking the numbers (Score:1)
Nah I'm pretty sure this is him:
https://assets.teenvogue.com/p... [teenvogue.com]
No matter what -- (Score:3)
C-level executives always seem to have an excuse which prevents them from hiring the staff they require. Also they also cover their butt when saying why they didn't meet investor estimated earnings. A lot of these statements are made to protect from investor lawsuits.
I understand that we live in a "lossy" universe in which the Second Law of Thermodynamics always gets its cut of released energy. However, it seems there is another loss path which is greater than the background loss in the universe, and that is the salaries and the perks that companies dole out to their senior executives.
Re: (Score:3)
That's "Hitchiker's Guide to the Galaxy" level.
Cheap Boomer investment money ... (Score:2)
... is drying up. No more 150k+/year for building bullsh*t online services that might turn a profit in 10+ years. Boomers have stopped investing and are spending and passing on heritages in their last days of life. This isn't the only factor crunching the tech industry, but a notable one, I suspect.
Translation: interest rates (Score:2)
Arrogance (Score:5, Interesting)
I am a teacher, occasionally they cross my path. They are experts in
I love it when these guys enter my web. I am an old hardware engineer. I designed and modeled integrated circuits. I have a decade and a half experience in designing integrated circuits. Digital, analog, firmware, a bit of management here and there, you name it. I know the corporate (electronics) world very well. Anyway, the art is to sneek in a tiny remark that makes them realize they are missing something about me. Preferably after they have spread a ton of sht about
Layoffs (Score:2)
Overall hiring is a mix, but layoffs are mainly driving down wages now.
Cooked statistics trailing reality. (Score:2)
That little uptick in IT sector unemployment is trailing reality where there's a larger acceleration of unemployment in IT due to cost cutting, recession like economy, uncertainty over AI augmentation of the IT labor force, and fear of the bubble popping whenever it does if ever.
The statistics are cooked since like an earlier poster said that when folks drop out of IT because they can't find good work anymore they aren't counted anymore in the unemployment statistics so it looks like a win for the numbers g
AI Fraud is a major cause (Score:2)
we all know this number is fake (Score:2)