The wave of layoffs that affected thousands of workers in the technology sector at the beginning of the year will also have an impact to employees about to join your workforcewith salary around 4% less compared to last year’s salaries.
According to a recent study published by the National Association of Colleges and Employers, lEntry wages at tech companies will fall compared to the salaries graduates received, they barely entered the workforce.
According to the explanation that the report offers, the layoffs would be related to the downward adjustment in entry salaries in companies such as Amazon, Google, Meta or Microsoft, all with thousands of workers left without work between the end of 2022 and the start of 2023.
All of these companies grew their workforces during the pandemic due to a skyrocketing demand for technology services and devices, in the face of the global confinements forced by the pandemic.
Yet the growths of virtually all tech giants were unsustainable once economies began to open up and workers returned to the office.
Most of the CEOs of these large companies accepted that changing economic conditions made them forced to apply adjustments in their costs and cut expensesa new reality of austerity that went through the thinning of its workforce and the reduction of wages.
The new salary reality will be no different for recent graduates looking to join the tech giants, mainly for those with computer science degreesaccording to the report of the National Association of Colleges and Employers.
The results were obtained through surveys applied to 170 employers in the sector about their hiring and salary plans.
Andrea Koncz, senior research manager at the National Association of Colleges and Employers, blamed the drop in entry-level wages in this sector to the massive layoffs at the beginning of the years.
The analysts who participated in the survey did not find sufficient elements to determine if the impact of the fall in entry wages in this sector will be prolonged or if it will recover soon.
However, they warned that this could not only be prolonged, but also be extended to other races. amid fears of the economy slipping into recessionas some analysts fear.
According to Koncz, this would not be encouraging for recent graduates seeking to enter the labor market, since entering the workforce in the midst of a recession can affect a worker’s earnings for a decade.
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Source: La Opinion
