Tech is always in its own world
Several large tech companies have been making headlines about layoffs. They’ve used lots of scary language about recessions and upcoming weakness. Meanwhile, jobless claims and employment figures for the economy as a whole do not show any such weakness or caution.
This chart from Goldman might help show why there’s such a divergence between what tech companies are saying about jobs, and what everyone else is experiencing: tech companies often hire and fire in waves unrelated to other industries.
Our take is that many tech companies went on a hiring binge during the pandemic, and not all of those employees are productive. Tech turnover is business as usual.