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the 2020 ‘recession’ wasn’t really bad for tech employment at all
There's still the hangover from free Covid money. I think the number one reason that it feels worse is that there's a LOT more people in the industry now than back in 2020. Much more competition than before.
Those of us who have been in the industry for 15-20 years we remember a time when tech was just a job.

In the mid 2010s, then most notably in late 2020 - 2021, you had people who had no interest in tech entering the industry because they saw it as an easy career to make decent money in.

It got pretty bad in the late 2010s, but it become almost comical in 2021 with people who took a two-week coding bootcamps suddenly landing 6 figure jobs. Some of these people were even working at multiple companies at the same time.

The optimist in me hopes this all shakes out with those people who had no interest in tech moving on to other things. These types of people were not only bad employees, they were also bad for the industry, and in my opinion responsible for culture shift from tech being a place dominating by "nerds" and "geeks" in the 90/00s to the modern "tech-bro" stereotype.

The realist in me though will continue to warn people the tech job they're working at today is likely their last. Between tech industry growth slowing, the excessive over production of tech talent and AI + SASS automating a lot of traditional software development work it's going to be exponentially harder to remain employed in tech in the coming years.

So much so you might as well find a relatively worse paid job if it means you don't have periods of months of unemployment every year.

The ideal software engineer will code himself out of a job and be happy about it.

Be that ideal. The shareholders are counting on you!

I prefer to code myself out of a job, and be the shareholder. I'm counting on myself!
The chart in the tweet represents year-on-year growth. Based on these figures alone the actual number of people employed in tech is still really high, and the numbers can't just go up forever.

Also this only captures 6 industries, which is a narrow view of what would define "tech" these days.

Not to say that the job market isn't tough but this graph is a very narrow view

The post-COVID spike was also absolutely insane and much bigger than dotcom boom.
Absolute numbers are still higher than they were 5 years ago but the number of jobs going down means that the same (or about the same) number of people are starting to compete for a smaller number of jobs. Many people have chosen to study software development in recent years so nowadays the workforce is much larger than it was 5-10 years ago.

This imbalance of supply and demand shifts power toward employers and it's hard not to feel the pressure even if you're not looking for a job right now.

Thank you. And those raw numbers in the chart that go back to 2001 are not normalized percentages; what’s happening right now is NOTHING like 2001.

But, it just doesn’t hit the same way on X to say “We are back to late 2023-levels of tech employment” or “The losses in tech jobs over the last 18 months give back two months of hiring in 2022”.

Tech hiring is bad, for sure, but the the graph does not make a clear picture.

What is software publishers category? As it seems it’s picking up while Computer system design is the largest negative impact.

I would appreciate if there was a better chart explaining sort of roles and locations that had the largest impact

It sure looks like during the ZIRP era, tech substantially overhired. Post-ZIRP companies are correcting that (but under the guise of AI).
In my experience, tech employment is incredibly bimodal right now. Top candidates are commanding higher salaries than ever, but an "average" developer is going to have an extremely hard time finding a position.

Contrary to what many say, I don't think it's simple as seniors are getting hired and juniors aren't. Juniors are still getting hired because they're still way cheaper and they're just as capable as using AI as anyone. The people getting pushed out are the intermediates and seniors who aren't high performers.

I'm not a Senior, but I'm not a Junior either. The market has no place for people like me. I've killed myself for almost two years and can't secure a position. It's incredibly disheartening. I have a family to feed. I need to be able to work.
Juniors really aren't just as capable with AI as anyone. Knowing how to unambiguously describe correctly what you want isn't something a junior can do, nor is understanding if what the ai produces is good or bad.
That matches an observation made in that report from the recent Thoughtworks retreat: https://www.thoughtworks.com/content/dam/thoughtworks/docume...

> The retreat challenged the narrative that AI eliminates the need for junior developers. Juniors are more profitable than they have ever been. AI tools get them past the awkward initial net-negative phase faster. They serve as a call option on future productivity. And they are better at AI tools than senior engineers, having never developed the habits and assumptions that slow adoption.

> The real concern is mid-level engineers who came up during the decade-long hiring boom and may not have developed the fundamentals needed to thrive in the new environment. This population represents the bulk of the industry by volume, and retraining them is genuinely difficult. The retreat discussed whether apprenticeship models, rotation programs and lifelong learning structures could address this gap, but acknowledged that no organization has solved it yet.

I wonder if that is just a correction of the rampant hiring that took place just before this employment “crash?” - if it is as you say that its intermediates and non high performers then does that make it a good thing as well.

Truth is, when I was part of larger orgs/enterprise I definitely saw some folks who were dead weight, and I don’t mean to be harsh, a few of these knew they weren’t contributing and were being malicious in that sense.

Similarly, I wonder how many high performers now are taking multiple jobs thanks to remote work and exposing the mid to low performers. Like some kind of developer hypergamy taking place.

someone: (actual data)

HN user: not in my experience!

What is a high performer?

Someone who jumps higher than expected when the boss demands it?

Someone who works 996 in the office?

Or someone who knows what they’re doing?

I think this is bigger than any individual. It’s just a matter of time before you’re let go. There’s no loyalty from companies at all. Not when they’re seeing higher than expected profits and are still cutting huge percentages of staff every year. There’s no strategy or preference to it. I don’t think this has to do with how you or I perform on the job.

Most people I’ve talked to lately who are still employed are watching out for their job to get cut.

> Juniors are still getting hired because they're still way cheaper and they're just as capable as using AI as anyone.

That is pretty context sensitive. You're correct that there's no real deep AI use expertise broadly understood to exist at this point (unless you're Steve Yegge?), but if people think they can toss out the engineers with experience in the systems that have been around a while, with junior developers "guiding" changes — that's likely a good way for a business to fall on its sword.

> "average" developer is going to have an extremely hard time finding a position.

As was foretold in the Tyler Cowen's eponymous 2013 book "Average Is Over".

In it he argued that the modern economy will undergo a permanent shift where "average" performance no longer guarantees a stable, middle-class life.

He predicted that the economy will split into two distinct classes: a high-earning elite (roughly 10–15% of the population) who thrive by collaborating with technology, and a larger group (85–90%) facing stagnant wages and fewer opportunities.

AI summary of the other key points of that book:

The "Man + Machine" Advantage: Success will belong to those who can effectively use smart machines. Cowen uses Freestyle Chess (teams of humans and computers) as an analogy, noting that human intuition combined with machine processing power consistently outperforms either working alone.

The Power of Conscientiousness: In a world of abundant information, the scarcest and most valuable traits will be self-motivation, discipline, and the ability to focus. Hyper-Meritocracy: Advanced data and machine intelligence make it easier for employers to measure an individual's exact economic value. This leads to extreme salary inequality as top performers are identified and rewarded more precisely.

A New Social Contract: Cowen predicts a future where individuals must be more self-reliant. He suggests society will move toward lower-cost living models for the non-elite, featuring cheaper housing and "bread and circuses" in the form of low-cost digital entertainment and online education.

EDIT: Notice how we're basically already here: Netflix is cheap, YT is free, Khan Academy and MIT OCW is free, Coursera/Udemy/etc. are cheap.

Stagnant vs. Dynamic Sectors: The economic divide is worsened by "low accountability" sectors like education and healthcare, where productivity is hard to measure and costs continue to rise, unlike tech-driven sectors that see rapid gains.

Any reasoning/data or at least an anecoded behind this claim? No?
I'm also seeing companies looking at only hiring juniors from overseas because they're using the same generative tools as US-based juniors but cost even less.
I sold a house after being laid off in mid-January from a government IT contractor where I had worked for eight years. The sale and move took about five weeks.

Before that role, I spent two years at another government contractor working on various govt. applications doing UX research, design, and front-end UI development. Overall, I’ve had a 17-year career in UX Research, Design and Development, starting at an ad agency in 2009.

From 2016 to 2022, I worked hard in government projects and enjoyed collaborating with great, close-knit coworkers and receiving consistently positive client feedback. From 2022 to 2026, things changed as the company grew—my role narrowed to UX research and design while newer hires handled UI development. I often felt underutilized and raised it, but management assured me I was doing well. With little direction from my last manager, I focused on staying visible to the client by monitoring user chats, identifying UX issues, and proposing design solutions that the client appreciated and the development team implemented.

Looking at where the tech industry is now—with thousands laid off from government IT and the broader tech sector flooding the job market, creating rising competition, constant pressure to work harder (Elon wants us to work as hard as Chinese workers do) and AI rapidly reshaping creative and development roles—I’m not very interested in that level of stress. I worked hard for many years and enjoyed it, but I value MY LIFE and MY HEALTH more than participating in the current “battle royale” environment in tech.

Overall, now with AI I feel graphic & web design, as well as front design web development is a stupid career! It was a nice run, bought two houses from it, worked remotely, when things were slow worked from wherever in the lower 48 and now .... in April Im starting nursing school and Im not young (20 years left of work in me). Roll with the punches here yet the punches are gonna punch hundreds of thousands to millions in the face ... not sure how this any good for an economy and society but here we are! If you are like me sell your house and stash the money away to buy houses when the crash from AI happens!

> In my experience, tech employment is incredibly bimodal right now. Top candidates are commanding higher salaries than ever, but an "average" developer is going to have an extremely hard time finding a position.

what an interesting way to say most programmers find it extremely difficult to get a job. you sound like you have some kind of insight, but is there anything notable about jobs drying up for people who aren't cheap enough or who aren't valuable enough? that's just how jobs dry up. anytime it's a bad job market for workers it'll be like that.

it is a great way to frame the coming tech crash. it allows whoever remains to fancy themselves as top talent.

> The people getting pushed out are the intermediates and seniors who aren't high performers.

i argue that's a good outcome. Seniors who aren't high performers should not command high salaries. I think the anomaly that is the post-covid boom is warping salary expectations vs difficulty of job (and the competency required for it).

> The people getting pushed out are the intermediates and seniors who aren't high performers.

It's almost impossossible to screen for "high performers" though. When interviewing, you just don't know who you are getting, short of like, they can solve your leetcode questions well, and they had good answers to pretty high-level "work experience" questions.

So I don't think this can be true on the hiring side. Maybe on choosing who they let go when cutting down the workforce, they can look at general performance reviews and such, but I doubt it plays a role in hiring.

"Senior" is about time served, not about capability. Plenty of clueless seniors out there.
>they're just as capable as using AI as anyone.

This is a very naive take. AI output still needs to be guided and iterated over, architecture decisions (even at the code level) still need experience to judge correctly.

Not everyone is as capable as using AI.

I worked with someone that was trying to push code with all the tells that they didn't understand the code and that it had been through multiple LLM iterations, it burned a lot of the productivity in a project.

> The people getting pushed out are the intermediates and seniors who aren't high performers.

Also the people that can't market themselves. There are very average programmers that have a large following on X that seem to do very well.

I agree with this — there is at least some bifurcation by skillset and capabilities. Lots of engineers are overfitted to working on consumer web apps or SaaS products, but those are no longer an area of focus. You need to be adaptable enough to work on other kinds of systems too. Doing so either requires that you’re really good commercially (can lead development of a product over time, drive revenue, etc) or very good technically at a wide breadth of technologies and problems.

What makes this more extreme is that we’re in a paradigm shift, technically. Systems of the future look different than what’s been built before. Building agentic stuff is very different than web apps. The infrastructure side is also different. Moreover, both are uncertain so there’s no plug-and-play set of skills that would fit into any company in the way you could probably get hired reliably in the 2010s if you can operate Kubernetes, design a database schema, write Node.js APIs, etc.

Seems like my co is shedding US jobs and moving them to Taiwan, and paying up to 75% less in salary.
How’s it compare to 2000 though? Tech was ascendant in 2008 so not surprised to hear it didn’t do too badly then and in 2020 while people panicked tech again had a much easier time keeping people on remotely.

EDIT: posted below as well https://xcancel.com/JosephPolitano/status/202991636466461124...

There’s a longer term graph in the thread. We’ve got a long way to go before we hit 2000 numbers which is what I’d expected.

Remember that the 2000 numbers are also out of a much smaller pool and the graph uses absolute numbers. So even if they were the same numbers in 2000 as 2020 it would have been a much, much larger percentage of all jobs.
(comment deleted)
Those are raw numbers. I would look instead at the job changes over total employment numbers. I don't have the numbers but I would wager we have many more people working in tech today (overall) than we did in 2008.

Also, that spike in 21/22 really did a number on people's expectations. The one constant in this industry is its cyclical nature.

As I previously mentioned, based on person experience assumptions around hiring have changed due to the Twitter layoffs, demands for FCF positivity, and WFH inadvertently justifying offshoring [0], not necessarily due to interest rate changes.

---

As I also mentioned, the only way you can survive in American tech at this point is to:

1. Move to a Tier 1 tech hub like the Bay and NYC. If you get laid off, you will probably find another job in a couple of weeks due to the density of employers. Seattle used to be a good option, but WA's norms around noncompete clauses incentivize larger employers which reduces the ability for startups to truly scale.

2. Start coming into the office 2-3 days a week. It's harder to layoff someone you have had beers or coffee with. Worst case, they can refer you to their friends companies if you get laid off

3. Upskill technically. Learn the fundamentals of AI/ML and MLOPs. Agents are basically a semi-nondeterministic SaaS. Understanding how AI/ML works and understanding their benefits and pitfalls make you a much more valuable hire.

4. Upskill professionally. We're not hiring code monkeys for $200K-400K TC. We want Engineers who can communicate business problems into technical requirements. This means also understanding the industry your company is in, how to manage up to leadership, and what are the revenue drivers and cost centers of your employer. Learn how to make a business case for technical issues. If you cannot communicate why refactoring your codebase from Python to Golang would positively impact topline metrics, no one will prioritize it.

5. Live lean, save for a rainy day, and keep your family and friends close. If you're not in a financial position to say "f##k you" you will get f##ked, and strong relationships help you build the support system you need for independence. The reality is the current set of layoffs and work stresses were the norm in the tech industry until 2015-22. We live in a competitive world and complaining on HN does nothing to help your material condition.

[0] - https://news.ycombinator.com/item?id=47174561

Although the graph lists BLS data as the source, it's hard for me to find the specific datasets that back it up. It's March 2026 and the graph indicates it would encapsulate 2025. In fact, the "Software Development Job Postings on Indeed in the United States" indicate something different, https://fred.stlouisfed.org/graph/?g=1T60O

I was able to find the following:

- Software Publishers https://fred.stlouisfed.org/series/SMU06000005051320001

  - Regional data available only, numerous national statistics are discontinued

  - California region matches up, but places like Boston don't https://fred.stlouisfed.org/series/SMU25000005051320001

- Computing Infrastructure Providers https://fred.stlouisfed.org/series/CES5051800001

  - Matches up perfectly, no notes here.

- Computer Systems Design https://fred.stlouisfed.org/series/CES6054150001

  - However, the graph in the tweet doesn't include the February data (even though it claims "recent") which shows an increase

- Web Search Portals https://fred.stlouisfed.org/series/CES5051900001

  - Matches up, but February data isn't in the graph which shows an increase from January

- Streaming Services https://fred.stlouisfed.org/series/SMU06000005051620001

  - Doesn't include January or February 2026 data, doesn't match up with graph in tweet
I wasn't able to find the following: - Custom Computer Programming Services

There are numerous open questions in this analysis which I would need to be addressed before drawing any conclusions. My gut feeling would love to accept it at face value but I never trust my gut.

Anyone else's inbox slammed with recruiters, more than it ever has been in the past? Feels like there's 10x the jobs available, but perhaps it's just that LLMs have automated a recruiter's job and they're letting the slop fly
I get lots of AI companies in my inbox, not much else. Surprisingly I got a bite recently because my linkedin says I have worked with eBPF.
Misleading title. The change in tech employment is worse, but actual tech employment remains high thanks to the massive 2021-2023 hiring spree.
Purely anecdotal, but I'm a senior engineer with about 15 years of experience and a decently impressive resume. In the past, I almost always get to at least the interviewing stage, and have frequently received multiple offers at the same time. Recruiters used to spam me constantly.

I haven't heard from a recruiter in probably 6 months. I recently put my feelers out and applied to a handful of positions I was qualified for, and got rejection letters from all of them.

Yet, no-one here is talking about building a start up. Which is the actual answer.
Are there real positions these days?

I get rejection for every single position that I apply to. Often I read literally a description of myself in job posting, and it's still "we decided to no move forward".

At the same time, I hire people and see that 8/10 candidates are just trash. Not in the sense they "are not aligned", or "emit wrong vibes", or other bs. They literally can't write a single line of code, on their own laptop, in their own IDE.

Make it make sense.

A lot of fake positions. It is not even from the company, just recruiters recycling old job postings. I know it is fake because I’m in the company and the project is long dead.
I know people will say AI, but I don't think it's that. The whole "everyone should learn to code" bullshit of the last 15 years or so has created a lot of developers that frankly aren't very good, and then you mix in the massive overhiring of the pandemic, and what you're seeing is a hard correction. CEOs love to use "productivity improvements from AI" as a smokescreen and investor catnip but the research shows it's not having the effects claimed.
It's bad, yeah, especially for folks on the job market (it me). Some statistics first, from my own job search logs:

* Since I hit the pavement in late January, I've tracked 100 job applications

* Of those 100, only 7 have turned into interviews

* Of those seven interviews, 3 turned into second-round

* ~50% of all applications never receive a response

* ~20% of rejections for any reason have the role re-posted within thirty days

* For rejections stating "higher quality applications", that role re-post rate is closer to 50%, suggesting ATS systems culling too many candidates to fill the role or ghost jobs

* Despite my state requiring salary requirements be posted in the JD, only around 70% of postings included what could be considered "reasonable" estimates

* 100% of interviews have been for local employers requiring 3+ days on-site

And now, some observations not captured in the data directly:

* Employers are trying to "under-title" folks; Senior roles want to hire former Leads, and Management roles want next-rung candidates for prior-rung titles (e.g., hiring what should be a Senior Manager for an entry-level management role)

* Employers are also trying to underpay workers by a large margin, especially folks coming from Big Tech ("We don't pay {SV_FIRM} money" while offering salaries below the local 50%ile for the role in question); they're blaming a "surplus of tech talent", which may or may not be true (I lack the data to prove either way)

* The two above points are in conflict, because rent/mortgages in these areas are so steep that even with major lifestyle changes to cut costs, these wages simply aren't survivable for local areas

* "Credential Creep" is back in force: Architect certs required for mid-level engineering roles, buzzwords prioritized over outcomes and achievements, and AI ATS' rejecting qualified candidates flat-out

* College Degrees are relevant again as a means of pruning candidates; fifteen years of experience is irrelevant for a lot of Senior roles if you don't have a BS or Masters, which wasn't the case even last year

* Industry-specialization is also back, even for roles where industry specialization is generally moot or easily picked up (e.g., Corporate IT stuff)

* A significant number (~75-85%) of roles explicitly reject H1B and other visa workers; not a problem for me (Citizen), but this is the worst possible time to be job hunting on a non-LPR status.

And now, my personal experiences:

* There's a very strong attitude of "you're being entitled" when it comes down to salary negotiations, even when you show your math for essentials - and share prior compensation history reflecting the cuts you've already taken since your Big Tech salary to "rejoin the market".

* Employers generally have no clue how expensive it is to live right now, especially in major metros; one such employer who balked at my comp floor genuinely had no clue the median rent was three and a half grand per month.

* Compensation seems particularly tilted towards working couples; as in, neither alone makes enough to survive, and employers assume you have a FTE spouse to shore up finances so they can pay you less

* Employers also don't seem to know what they actually want or need. Specialist Engineer roles (e.g., Cloud Engineer, Network Engineer) cite required experience and expertise with the full technology stack inclusive of ERP and HRIS nowadays, which is something that used to be handled by a specific team for the entirety of my career thus far, even in smaller (<1k) orgs. I've also seen Architect roles demanding Help Desk work, and Software Dev roles who want experience supporting Entra.

* AI does not feature in as many interviews as I would've thought. The few times it does, it's very much a "that's nice, but we're taking a wait and see approach" attitude

* There's a lot of eage...

I'm also looking right now and a lot of that resonates with me. The posted salary ranges are often a complete joke as you noted. "The pay band for this role is $80,000-250,000 commensurate with experience and interview performance". Yeah OK buddy are you seriously trying to tell me you have multiple people with the exact same job title making salaries over $100k apart? Feels like they're just giving the finger to lawmakers through malicious compliance.

I've also run into the industry specialization roadblock a few times. Got turned down by a fintech company after multiple interview rounds because I did not have banking industry experience, for example. I guess I get it as a tie breaker but I've operated in a PCI compliant environment for years, seems like that should count as relevant experience? Also if you're going to dumpster candidates without banking experience why on earth did you waste several hours of your staff's time giving me tech screens?

Job hunting has always sucked. But it feels particularly busted at the moment. The process is miserable. If you've coasted to an easy hiring in the last year, you're either amazing (and hats off to you!) or got very lucky.

I'm early in my search, but compensation seems all over the place. From the recruiters I've talked to they've been pretty baffled too about compensation given the market. I know one place a recruiter called me about was looking for absolute unicorn talent (like 15 years of experience in multiple very different domains), but their salary was like 70k less than I made at my previous job and when I asked about titles they said it was "flat" and everyone was just a "software dev".

I don't want to sound like it's all a horror show though, I've had some interviews that have gone well with companies being sensible, so I think there's good stuff out there. But it's overall a rough market.

Seems like a tough market for those nuking their prod db with an ai agent
Looking at the employment report that came out today, tech seems to be doing better then most sectors...

"Other professional, scientific, and technical services" grew month over month and year over year

"Information" took a hit, but the bulk of that was "Motion picture and sound recording industries"

"Computing infrastructure providers, data processing, web hosting, and related services" modestly shrunk, but "Web search portals, libraries, archives, and other information service" is the only area to grow under information.

This seems different then what the post says. They also said worse then 2008, but didn't post any information. I would imagine the total market was much smaller, so the while total jobs lost was probably smaller, percentage was probably larger. When I started in 2012, tech would take any with a science degree.

I don't understand the job titles being propose in the post, are the using different BLS data then me?

https://www.bls.gov/news.release/pdf/empsit.pdf

This is the plot of the first derivative of employment. It shows a comparatively small but lasting dip after a massive, prolonged, and unwarranted boom between late 2020 and early 2024 that coincided with the dying breaths of ZIRP.

I have no idea about what's coming, but I wouldn't pay a whole lot of attention to people who are looking at the plots of a highly volatile and cyclic industry that goes through constant boom-and-bust cycles, and are trying to position this as proof that AI is or isn't having an impact.