Feb. 11 - The Wall Street Journal reported on Feb. 7 thatUSATechnology Industrylose one's jobThe rate climbed from 3.9% in December to 5.7% in January, considerably higher than the 4% unemployment rate for the month as a whole, showing that the spread of automation and AI is taking a toll on the tech industry's labor market.Growing negative impacts.
According to a report released by consulting firm Janco Associates, based on data from the U.S. Department of Labor, the number of unemployed people in the tech sector in January was up from 98,000 in December of last year.Increase to 152,000.
Victor Janulaitis, CEO of Janco Associates, said that unemployment in the tech sectorPartly due to the impact of AI.. With the rise of generative AI, tech giants are investing a lot of money in AI infrastructure, but these fundsNo new IT jobs were created.
Janulaitis explains, "Routine and menial tasks in the IT department such asReports and administrative instrumentsare being eliminated. As companies begin to focus on AI, they are also thinking aboutReduction in the number of programmers and system designers, hopefully AI will provide enough value to deliver a good return."
Increased corporate investment in AI is primed to lead to reduced hiring in the future, which some tech leaders have begun to call "cost avoidance". Some companies would ratherTaking on tasks that can be automated through AI, rather than hiring new employees and saving money from it.
According to Cory Stahle, an economist at job site Indeed, the latest tech sector employment data suggests that the unemployment rate for white-collar workers is still in theHighest level since 2020.
We've seen, particularly over the past year, a polarization of opportunities," he said.White-collar knowledge-based jobsemployer demand is much lower than those that require face-to-faceskilled laborPost."
Another reason for January's tech industry job losses is that companies are beginning to implement spending cuts for the year, Janulaitis said, adding that many companies made significant budget cuts based on the prevailing economic conditions when they were making their financial plans last year, 1AI understands.