The headlines about layoffs at some tech giants, such as Microsoft, Meta and Google, have some professionals questioning the future of jobs in the sector — and the effects of this on their finances. Those concerns may have intensified when Microsoft leaders said those being let go were low performers, according to Inc.
The layoffs in the tech sector come as companies and their workers consider how developments in artificial intelligence (AI) may impact the workforce over the next few years. GOBankingRates spoke with some tech leaders and experts to find out why tech jobs may still be booming, despite these recent layoffs.
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Strong Market
“While headlines about layoffs at Microsoft, Meta, Google and others may raise concerns, broader labor market data tells a different story,” said Sania Khan, labor economist and founder of Inflection Point Strategy. “The demand for tech talent remains robust, driven by structural shifts in the economy and ongoing digital transformation across industries.”
Khan said the overall labor market remains resilient. Andrew Lokenauth, tech career expert and founder of TheFinanceNewsletter.com, agreed the overall tech job market is still growing and that the layoffs don’t tell the whole story.
“Big tech layoffs are mostly about restructuring,” Lokenauth said. “Smaller companies are snatching up talented workers and many laid-off professionals are finding new tech jobs quickly.”
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Influence of AI
Khan, who spent over a decade in public service, working across the White House, Congress and the U.S. Bureau of Labor Statistics, also said AI is playing a big part in the reasons tech jobs are still booming.
“AI is reshaping jobs and not just eliminating them,” Khan said. The tech labor market is adjusting, not collapsing. Digital expertise remains in high demand and companies that proactively evolve their workforce alongside AI will emerge stronger.
Digital Transformation
Lokenauth said the digital transformation underway means every business is becoming a tech business.
“Banks need apps, manufacturing plants use smart tech and restaurants use digital ordering systems,” Lokenauth said. “Even small businesses need websites and digital tools.”
The transformation extends to nonprofits and other organizations — it also means the need for tech professionals who can come in and lead the way.
Industry Growth Areas
Lokenauth further said that tech growth is not just about big companies.
“Healthcare tech is booming, remote work tools need constant development and startups keep popping up with new ideas,” Lokenauth said. “Plus, tech consulting firms are expanding.”
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This article originally appeared on GOBankingRates.com: 4 Reasons Tech Jobs Are Still Booming, Despite Recent Microsoft Layoffs
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
