Layoffs in the technology sector have hit a three year high. Here’s a telling quote:
“We may see more job cuts from the computer sector in the months ahead,” John A. Challenger, CEO of Challenger, Gray & Christmas, said today in a statement. “While consumers and businesses are spending more on technology, the spending appears to favor a handful of companies. Those that are struggling to keep up with the rapidly changing trends and consumer tastes are shuffling workers to new projects or laying them off altogether.”
That dovetails nicely with the preceding post.
This is why I largely reject the “structural” explanation for our current unemployment problems. If we were dealing with skills failing to match employer needs then it’s unlikely the problem would penetrate into virtually every field. We’re going to have to wake up to the fact that even highly trained professionals are no longer safe from automation and consolidation.
That’s the definition of structural unemployment. Money is flowing downhill, towards the most secure investments. Those are the things that have the highest level of government subsidy—healthcare, finance. That we restrict entry into healthcare constrains the employment effects of the additional investment.