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The biggest factor is that internet companies experienced a huge boom during COVID and hired assuming this boom was permanent, but it turned out to be temporary
by Eridrus 2y ago
The biggest factor is that internet companies experienced a huge boom during COVID and hired assuming this boom was permanent, but it turned out to be temporary, so they ended up with more staff than they needed, particularly when growth seemed to stall.
With a glut of people on the market companies naturally needed to pay less to hire them, leading to a general depressed wage level for new hires.
- rhelz 2y agoIs the boom over? I don't see a lot of companies posting declining revenue. Seems to me most everybody is still breaking new records every quarter.
- Eridrus 2y agoThe COVID boom was basically over at the end of 2021, and all of 2022 was quite flat with minimal growth, and we did not return to growth until 2023. With the benefit of hindsight, we can see 2023 as a return to growth, but it's hard to tell those early signs as different to noise without seeing the rest of the chart going into late 2023/2024. Big tech companies have recovered now, but hiring is still restrained since they found they had a lot of work that could be cut, and nobody is excited to do layoffs again in general. Layoffs were very bad for morale.