Hiring for technology positions grew at a slower pace in June, at a time when many tech executives fear a coming recession, according to a July 10 Wall Street Journal story.
Labor Department data released July 8 showed the economy added tech jobs faster than before the pandemic but more sluggishly in certain parts of the sector compared to earlier this year, the newspaper reported. For instance, computer and electronic products jobs grew by 2,300 in June, compared to an average of more than 2,800 in the first five months of 2022.
"Tech companies had a glory period where people were throwing money at them, and that is now over," Julia Pollak, chief economist at ZipRecruiter, told the Journal.
Amid high inflation and falling U.S. economic output, big technology players like Twitter and Tesla have recently laid off employees, while Amazon and Snap plan to cut back on some hiring. As Becker's has reported, several digital health startups have laid off staff in recent weeks.
Some observers say the recent trend could be a sign of a market correction rather than a full-blown recession, the Journal reported. "Just to have a return to some normalcy, in some ways, that's a very painful transition," Redfin CEO Glenn Kelman told the newspaper. "In other ways, it's really healthy and good."