In April, the tech industry experienced a significant downturn, losing 214,000 jobs despite the overall unemployment rate remaining steady at 4.2%. This decline is attributed to companies prioritizing AI roles and skills-based hiring, resulting in a shift in labor market dynamics. Tech unemployment rose to 3.5%, and while the tech services sector reported some hiring gains, they could not compensate for losses in manufacturing and telecommunication. Employers are taking a conservative approach to recruitment, causing hiring slowdowns across the sector.
Employers are no longer aggressively expanding their workforce, fewer individuals are leaving their jobs, and those who do are finding it challenging to re-enter the job market.
It was not a great month of data, but expected given the circumstances. Employer tech job postings continue to hold up, so that's a possible sign that hiring will resume as companies find their bearings.
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