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Unemployment Ticked Up in America's IT Sector

Slashdot
6 days 3 hours ago
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.

Read more of this story at Slashdot.

EditorDavid

Unemployed Ticked Up in America's IT Sector

Slashdot
6 days 3 hours ago
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.

Read more of this story at Slashdot.

EditorDavid