The tech job market is experiencing a significant downturn, with low hiring rates, stagnant promotions, and few openings for job seekers. Artificial intelligence may contribute to this stagnation. After a peak in tech opportunities in early 2022, job postings have dramatically decreased since mid-2023, worse than overall US job trends. Economic conditions, including rising interest rates, have made financing new tech investments riskier. Consequently, young tech workers face higher unemployment rates, despite the influx of computer science graduates into the labor market, indicating a mismatch between skills and opportunities.
The labor market has been frozen for months, marked by low layoffs, low hiring, and few openings for job seekers and switchers. The cooldown has been worse than the slowdown in overall US job postings.
Artificial intelligence could be stalling a rebound in tech openings on the job-search platform, but it's not the only possible factor affecting the job market.
The sector is experiencing an overhang from its earlier hiring boom, aggravated by less supportive economic conditions - including the end of the 'zero interest rate period', with some resemblance to trends in the broader economy.
Unemployment for young tech workers is above pre-pandemic rates, indicating that the rising number of tech graduates is not translating into job opportunities.
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