mark the first large-scale job cuts since early 2020. After years of falling U.S. unemployment, it might seem like Silicon Valley is foreshadowing the beginning of a dystopian future for workers. Yet there’s a good chance that what happens in Silicon Valley won’t spill over into the rest of the economy.
Silicon Valley is ahead of the curve on firing too. Rising interest rates are making capital more expensive, which forces companies to clip spending on future projects. That’s particularly burdensome for tech firms that rely heavily on innovation to drive growth. Elon Musk halved Twitter's headcount in November to rein in costs. Employment has since fallen further as disappointed workers resign.for every available worker in September.
that the fight would likely bring layoffs and slower hiring. The Fed’s projections see unemployment hit 4.4% in 2024, suggesting roughly 1.2 million more people out of work.that such a trade-off might be avoidable. That raises the hope that what’s coming isn’t even a white-collar recession, but a tech-specific adjustment. That’s not much consolation for workers handing back their door badges. But it suggests that Silicon Valley’s modest cull might be as bad as it gets.Amazon.
BenWinck People will avoid work that should have had already been automated more and more. Service droids and all that are overdue. Not everywhere, though. Thank you Tina.