The tech sector has faced major challenges in the last few weeks. Twitter is dealing with a shift in power that prompted mass layoffs. Meta announced its largest staff cut since its inception. After a booming two years, it would seem that tech is at an inflection point. Demand dynamics have changed in 2022: no longer are consumers chronically online like they were at the worst of the pandemic. Facing this development, tightening monetary policy, and hot inflation, these companies are deciding to reverse the tech employment boom.
That potential inflection point, however, has yet to show in the data. In October, the technology sector gained a modest 4,000 new jobs. Additionally, these layoffs have yet to show up in initial jobless claims, which dropped by 4,000 for the week ending November 12 from the week before. Perhaps high demand is allowing for some of these workers to find jobs quickly and skirt the need for unemployment filings.
And, of course, these highly exposed companies are not the entire industry, as the latest tech jobs numbers remind us.
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