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Once A Dynamo, The Tech Sector Is Slow To Hire - U. S.

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http://www.nytimes.com/2010/09/07/business/economy/07jobs.html?ref=business

For years the technology sector has been considered the most dynamic, promising and globally envied industry in the United States. It escaped the recession relatively unscathed, and profits this year have been soaring.

But as the nation struggles to put people back to work, even high-tech companies have been slow to hire, a sign of just how difficult it will be to address persistently high joblessness. While the labor report released last week showing August figures provided mildly positive news on private-sector hiring, the unemployment rate was 9.6 percent.

The disappointing hiring trend raises questions about whether the tech industry can help power a recovery and sustain American job growth in the next decade and beyond. Its tentativeness has prompted economists to ask “If high tech isn’t hiring, who will?”

“We are talking about people with very particular, advanced skills out there who are at this point just not needed anymore,” says Bart van Ark, chief economist at the Conference Board, a business and economic research organization. “Even in this sector, there is tremendous insecurity.”

Government labor reports released this year, including the most recent one, present a tableau of shrinking opportunities in high-skill fields.

Job growth in fields like computer systems design and Internet publishing has been slow in the last year. Employment in areas like data processing and software publishing has actually fallen. Additionally, computer scientists, systems analysts and computer programmers all had unemployment rates of around 6 percent in the second quarter of this year.

While that might sound like a blessing compared with the rampant joblessness in manufacturing, it is still significantly higher than the unemployment rates in other white-collar professions.

The chief hurdles to more robust technology hiring appear to be increasing automation and the addition of highly skilled labor overseas. The result is a mismatch of skill levels here at home: not enough workers with the cutting-edge skills coveted by tech firms, and too many people with abilities that can be duplicated offshore at lower cost.

That’s a familiar situation to many out-of-work software engineers, whose skills start depreciating almost as soon as they are laid off, given the dynamism of the industry.

The knowledge based economy in full swing.

Already you can do it cheaper elsewhere, so the jobs simply go abroad. And the west gets left with?

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Yes, a minimum wage job, 12-times salary mortgage and life of misery.

In the current climate, a lot of businesses are making do with the software packages and applications that they already have. Likewise, spending on business hardware is also down over the last 24 months, and where projects are approaching completion,they are rarely being followed with new projects. (Note last week's thread on 200 applicants per job, and how many contributors were unemployed/underemployed IT people.)

Edited by John The Pessimist

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The knowledge based economy in full swing.

Already you can do it cheaper elsewhere, so the jobs simply go abroad. And the west gets left with?

The problem, at least in software, is that much of the 'going aboard' stuff is only cheaper on paper.

In order to make it work you have to assume that your current developers have zero domain knowledge, there will be no communication difficulties, progress will be truthfully reported and timescales will be realistic.

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The problem, at least in software, is that much of the 'going aboard' stuff is only cheaper on paper.

In order to make it work you have to assume that your current developers have zero domain knowledge, there will be no communication difficulties, progress will be truthfully reported and timescales will be realistic.

So we have to wait until those sending the projects abroad realise this and bring the process of fixing the project back, or start from scratch using workers in the West. Oh, and hope they don't go to the wall because of the problems in the meantime.

And that others learn from their example and don't offshore their projects in the first place.

And that they and the others don't just bring in the brightest and best from Chindia etc. to work in the West.

And that the Chindians etc. don't get better at it (so that the problems reduce, if not disappear) while still being cheaper.

Then perhaps there may be tech jobs in the West.

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The knowledge based economy in full swing.

Already you can do it cheaper elsewhere, so the jobs simply go abroad. And the west gets left with?

this is why western currencies have a lot further to fall. And they must fall.

We need our jobs back, inflation be damned.

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I had an IT agent ring me up yesterday about a single patient record IT project just kicking off in Wales.

How long is that going to last before it is canned?

Edit:

This just appeared online.

NHS in Wales faces £380m cutbacks

http://www.bbc.co.uk/news/uk-wales-11179926

Edited by The Masked Tulip

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And if you work in the US or Europe for Oracle, the chances of losing your job in the next 3 yrs just got a lot higher..... :(

http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/telecoms/7986000/Former-HP-boss-Mark-Hurd-makes-dramatic-return-at-Oracle.html

Mr. Hurd (or Turd as he was known at NCR) is a typical slash-and-burn bean counter. He only looks at share price, nothing else. He'll get millions. Ditto for his chums at the top. The IT guys??.......food stamps.

Back to the OP : the US tech sector won't be slow to rehire. It's already dying. It's zenith was the 80s and early 90s. Since then, most of it has moved East. The US tech companies are all about branding and marketing nowadays.

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And if you work in the US or Europe for Oracle, the chances of losing your job in the next 3 yrs just got a lot higher..... :(

http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/telecoms/7986000/Former-HP-boss-Mark-Hurd-makes-dramatic-return-at-Oracle.html

Mr. Hurd (or Turd as he was known at NCR) is a typical slash-and-burn bean counter. He only looks at share price, nothing else. He'll get millions. Ditto for his chums at the top. The IT guys??.......food stamps.

Back to the OP : the US tech sector won't be slow to rehire. It's already dying. It's zenith was the 80s and early 90s. Since then, most of it has moved East. The US tech companies are all about branding and marketing nowadays.

Wasn't it during Hurd's time that Oracle overtook HP among the biggest-of-the-big tech companies (true, still behind IBM/Microsoft/Google, and a certain fashion company that some still class as technology)?

I'm still waiting to lose my job since my company got borged by Oracle.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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