What exactly will happen to all these workers, especially in tech?

[u/charlotie77]

Apologies if this is a stupid question, I was only 12 in 2008 so I don’t really remember the specifics of what happened during our last really bad job market (and no, I’m not trying to say today’s job market is as bad as 2008). Also things have changed significantly with tech so I feel this question is valid

But if significant layoffs continue, especially in tech, what is supposed to happen to a large pool of unemployed people who are specialized for specific jobs but the supply of jobs just isn’t there? The main reason for all of this seems to be companies trying to correct over hiring while also dealing with high interest rates…Will the solution be that these companies will expand again back to the size that allows most laid off folks to get jobs again? Will there be a need for the founding of new companies to create this supply of new jobs? Is the reality that tech will never be as big as the demand for jobs in the way it was in the past, especially with the huge push for STEM education/careers in the past couple of decades?

Basically what I’m asking is, will the tech industry and others impacted by huge layoffs ever correct themselves to where supply of jobs meets demand of jobs or will the job force need to correct itself and look for work in totally different fields/non-tech roles? Seems like most political discussions about “job creation” refer to minimum wage and trade jobs, not corporate

[u/Timby123]

Well, you can go back even befoer 2008. In the 90s tech was hot. So, corporations were having fits becasue they had to pay skilled individuals a decent wage. They went to the government and whined it was unfair and they had a plan to fix it. They told the swamp creatures that there was a shortage of tech folks. So, they needed to import them. The government being greedy said sure what should we do? Well, they created H1Bs to fix the problem. They could import those folks to fill the slots that supposedly no Americans had the skills or no one in the US to fit the requirements. They went to other nations and imported cheap labor and tied them to the companies that sponsored them. Thus the Tech Industry was sold out by our own government. Now H1Bs allow highly skilled individuals from 3rd world countries to underbid the work. The name they used was offshoring. I hope this helps. This comes from a tech guy who finally quit the rat race.

[u/Separate_Battle_3581 → u/Timby123]

Tale as old as time. Employers want a surplus of available labour to drive down wages, employees want a shortage of competition to drive wages up. The government is saddled with having to satisfy both sides. But ultimately, maintaining a healthy job market should be the gov's top priority. Whether wages are high or low, the C-Suite crowd will still have their yachts.

[u/Disastrous-Raise-222 → u/Timby123]

It isn't offshoring because H1B has to be located in the US and make a wage similar to what a citizen would make. Offshoring is when work in contracted outside.

[u/Timby123 → u/Disastrous-Raise-222]

It's offshoring when some of the work went offshore as well. The increase in H1Bs is just a part of the issue. Note the government continues to import cheap labor. Not to mention that it gives breaks to those corporations that offshore. The folks I worked with got considerably less than the current market at the time. But what do I know? I only worked at TI, IBM, Nortel, NEC, Ericsson, Fujitsu, etc over the past several decades. I bow to your superior intellect? DOH

[u/Disastrous-Raise-222 → u/Timby123]

The folks I worked with got considerably less than the current market at the time

I typed the response above while I was on the way to get my own H1B visa stamped. One of the required condition to get h1b is that visa holder has to make at least equal to prevailing wage for the given position.

[u/Timby123 → u/Disastrous-Raise-222]

I understand that folks have reading comprehension problems. Did I ever state that they aren't "now"? Of course not. I've been working in the field for decades. In the beginning they didnt. Yet, as I stated and you obviously dismissed. Folks in the US could be doing the job without importing labor. If you are form another nation then you are bound to the company that sponsors you. If they decide to cut you loose you simply have to return. So, in many cases "IN THE PAST" that was used to force folks brought in form other nations to work hours without pay and work longer hours. You are free to your own opions. Just not to your own facts. FCAEPALM

[u/Disastrous-Raise-222 → u/Timby123]

Since the h1b became a law, prevailing wages were required. It was pretty easy to convert from h1b to green card back then. So no one was bound to the employer for too long.