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Why widespread tech layoffs keep happening despite a strong U.S. economy (www.cnbc.com)

submitted 2 years ago by MicroWave@lemmy.world to c/economics@lemmy.world

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The tech sector is having a big 2024. Nvidia just crushed earnings expectations. The artificial intelligence boom remains in full swing. The tech-heavy Nasdaq index is up more than 8 percent year to date.

The U.S. economy is also doing surprisingly well, adding 353,000 jobs in January, well ahead of economists’ forecasts. Hotter-than-expected inflation data may also keep the Fed from cutting rates as soon as the market expects, a sign that the economy remains strong enough to support tighter monetary policy for longer.

It’s a different story for tech workers, though. 

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[–] az04@lemmy.world 5 points 2 years ago

Because tech can be easily turned into a remote job. Tech jobs are doing great in countries with low wages. I live in Portugal and all the software engineers I know work remotely for some non Portuguese tech company. It's good for them because they become some of the highest earners in the country straight out of uni and it's good for the companies that hire them for almost half what they would pay an American, German or Israeli.