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United States Programming The Almighty Buck IT Technology

U.S. IT jobs Down 400K Since 2001 1049

Cryofan writes "A research study shows that American information technology industry 'lost 403,300 jobs between March 2001, when the recession began, and April 2004.' Over half of those jobs - 206,300 - were lost after the recession was declared over in November 2001. In all, the job market for high-tech workers shrank by 18.8 percent, to 1,743,500, between March 2001 and April 2004. And the bloodletting continues -- as reported here on Slashdot earlier this year, the number of employed Software Engineers fell by 15% from April to July of 2004 (from 856,000 to 725,000)."
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U.S. IT jobs Down 400K Since 2001

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  • in other news... (Score:5, Insightful)

    by Coneasfast ( 690509 ) on Tuesday September 14, 2004 @11:52PM (#10252845)
    india and china's economy growth is booming :)

    no really. it's true.
    • by reporter ( 666905 ) on Wednesday September 15, 2004 @12:18AM (#10253042) Homepage
      Any high-tech job that can be outsourced will be outsourced. You will see a continuous shrinking of the high-tech labor force.

      Both political parties claim that free markets require the free exchange of goods and services (which includes labor) between the USA and other members of the World Trade Organization (WTO) and fusing the American market with the Chinese/Indian/Mexican market maintains the free market in the USA. Unfortunately, the politicians are just playing a verbal game with economics.

      Allow me to explain. The USA, in isolation, is a relatively free market -- with relatively little government intervention (compare to, say, China). So is Japan, Canada, and the rest of the West. However, Mexico, China, and India are not free markets. Excessive government intervention has damaged the markets in those economies, and they cannot provide jobs for millions of underemployed persons.

      When the USA interacts with, say, China, we have the interaction of a free market and a non-free market. The by-product (i.e. millions of underemployed Chinese) of non-market forces now affects the market dynamics in the USA. The underemployed Chinese are a continuing stream of cheap slave labor; jobs are then transferred from the USA to China.

      The USA is no longer a free market because non-market forces (in this case, Chinese government intervention) is altering the dynamics of the labor market in the USA. The verbal game that politicians play is to simply define the USA to be a "free market", ignoring the fact that the Chinese government is now grossly affecting the labor market of the USA.

      Similar comments apply to both India and Mexico. Similar comments apply to H-1B workers and illegal aliens from Mexico: the American government has, in effect, actively used H-1B workers and illegal aliens to intervene in the labor markets in both high tech and low tech. Illegal aliens have destroyed the upward pressure on wages in the market for unskilled labor. H-1B have hurt salaries for engineers. Shortages are a normal part of any labor market, and they are an upward force on salaries/wages and working conditions. When the government actively works to wipe out such shortages, the government is damaging market forces.

      If you hate what is happening to our country, the USA, then please write the following on the November ballot.

      president: Bill O'Reilly [billoreilly.com]
      vice-president: Tammy Bruce [tammybruce.com]

      • by msobkow ( 48369 ) on Wednesday September 15, 2004 @01:12AM (#10253410) Homepage Journal

        India, China, and many other such nations also have a huge demand for infrastructure growth and development. Before they get greedy about the foreign markets, maybe they should take care of building up their local business market?

        Wouldn't that also help get a few more people employed in those countries instead of merely sucking jobs from other nations?

        Maybe we need to find ways to work more efficiently as well, and put more of our resources into actually doing our job instead of wasting it on IP lawsuits.

        Can you imagine starting a business nowadays? Before you could even think about approaching potential partners, you'd have to spend months or even years just working out how you're going to defend against Microsoft, SCO, and other overly-aggressive companies.

        It may sound trite, but imagine how much more actual work and revenue-generating business enhancements could do with, say, the money IBM has spent defending against SCO so far?

        • by tupps ( 43964 ) on Wednesday September 15, 2004 @02:50AM (#10253878) Homepage
          Unfortunately the goverments in these countries are unable to pay for all the infrastructure etc that is needed.

          The people in the IT sectors are making money for countries like India. The Indian government has put a lot of money into educating people and now the Indian IT sector is taking off. This will bring money into India and from those taxes generate revenue for the govt to pay for infrastructure etc. With a global economy Indian business men are just taking advantage of supply and demand, at present the supply side of things (heaps of people in India with IT skills) is larger than the demand (companies wanting to outsource) and therefore the price is dirt cheap.

          You saw the same thing with steel and cars. I remember when if you were looking at cheap/crap electronics you could be guarenteed that it came from Taiwan. Over time the reputation of Taiwan has improved and higher value goods are being produced there. Cheap electronics now typically come from China. Same thing happened with cars and Japan. I would like to see the look on a car sales person face in 1980 if you told them that Japan would be producing some of the top of the line cars, and that Toyota and Honda would both have Formula 1 and Indy cars.
      • Uhhhh.... I was with you until this:
        If you hate what is happening to our country, the USA, then please write the following on the November ballot.

        president: Bill O'Reilly
        vice-president: Tammy Bruce


        Seriously, I've said the same stuff about the situation with India and China, just got finished mentioning it before I saw this post. But, and this is a big but, your conclusion makes abso-fscking-lutely no sense whatsoever. Bill OReilly can't keep left and right straight, much less understand how the hell to deal with pushing Fair Trade instead of Free Trade.

        How would an anti-Union, pro-Corporate shill for the right do jack to help the American Worker?

        I was really expecting to see you throw support to John Kerry, but WTF? Did I miss a joke somewhere?
        • by jkrise ( 535370 ) on Wednesday September 15, 2004 @02:43AM (#10253837) Journal
          Much as any politician would hate to accept, the economy is now well and truly in the hand of the Corporates, not the political forum. Anyone getting elected to the presidency will hardly make a difference to the economy. Consider the strength of the Chinese and the Indian economies, and consider for a moment who's been in power in those countries for some years now....

          -
      • bad advice (Score:4, Insightful)

        by Doc Ruby ( 173196 ) on Wednesday September 15, 2004 @01:39AM (#10253575) Homepage Journal
        You're recommending we send a delusional hack, who aspires to an imaginary childhood in Levittown, NY, to the White House? What, do you work for the Chinese? If you hate what's happening to the American workforce, go to a union, and ask them how to help organize your fellow info workers. That's the only politics that's ever protected American labor. It's no accident that such a successful movement would send O'Reilly into a spasmatic fury.
      • by raehl ( 609729 ) * <raehl311@@@yahoo...com> on Wednesday September 15, 2004 @01:55AM (#10253639) Homepage
        And people buy the least expensive item possible.

        Who cares why Indians and Chinese are willing to work for less? It doesn't matter. If their governments are willing to force their people to sell their labor for cheap (an assumption I disagree with, but let's run with it anyway) that's just good for us.

        Americans want their own jobs protected, but then turn around and buy the imported item that's cheaper. And that *IS* a free market - Americans are deciding that saving a few bucks is better than employing other americans, and THAT is why jobs are outsourced.

        Because Americans WANT jobs to be outsourced.

        Just not theirs. But they lose that vote.
        • by DAldredge ( 2353 ) <SlashdotEmail@GMail.Com> on Wednesday September 15, 2004 @02:21AM (#10253732) Journal
          Well, till enought people in the USA have their wages reduced so much that they vote in people to fix the problem.

          That is something the medieval history major that runs HP and others like her forget to take in account.

          Kind of like the only people who are supporting all the illegal immigration are those that live in gated communities and/or have their own compounds and private security.

          I also suggest you look up and see who the insurer of last resort is for all these overseas factories. HINT. it is the US Taxpayer.
        • by ProfBooty ( 172603 ) on Wednesday September 15, 2004 @11:32AM (#10256631)
          its not just that the chinese work for less, is the exchange rates. The yuan is fixed by the chinese government to a certain dollar exchange rate.

          If an equal number of yuan and dollars had the same buying power, things would be a little different.

          there are other factors as well, but the exchange rates do make a signifigant difference
      • by tunabomber ( 259585 ) on Wednesday September 15, 2004 @02:42AM (#10253835) Homepage
        When the USA interacts with, say, China, we have the interaction of a free market and a non-free market. The by-product (i.e. millions of underemployed Chinese) of non-market forces now affects the market dynamics in the USA.

        I'm not sure I understand how the influx of cheap labor would be any worse for the U.S. than if China truly did have a free market.
        If China had a truly free market, and your assumption about this improving the Chineses domestic job market was true, then who would all these workers be employed by? Chinese companies. And who would these Chinese companies compete with? American companies, which would have a competitive disadvantage since American workers are more expensive than Chinese workers, thanks to high living costs.
        The American companies would then lose business, forcing them to trim their workforces.

        The problem here is that if we try to compete with other countries in the unskilled or lesser-skilled labor markets, we will lose every time. In the long run, there are only a few things that we can do if we want to keep our jobs:

        a. Become exceptionally skilled workers (not difficult, considering the exceptional quality of educational institutions in the U.S.)
        b. Keep on moving into new markets as the old markets become dominated by companies that rely on cheap labor.
        c. Do something about the high living costs in the U.S., which are making this country extremely hostile to the working classes.
      • by maxpublic ( 450413 ) on Wednesday September 15, 2004 @03:48AM (#10254101) Homepage
        You're missing a big piece of the picture here. Putting aside the fact that America isn't a free market and hasn't been for quite some time, let's pretend for a moment that the entire world - every single country - is happily following Adam Smith's theory as closely as possible.

        What happens? The overall wealth of the entire world rises, probably markedly. The system as a whole benefits from free market economics. Let me repeat that: the system AS A WHOLE benefits from free market economics.

        This DOES NOT MEAN that EVERY NATION benefits from this situation. All free market economics guarrantees is that the world, taken as a whole, will be wealthier than it was before. Some areas will see their wealth increase by vast amounts; others by lesser amounts; and some areas will actually see their wealth DECLINE. But when you add them all up, the world - as a whole - will be wealthier.

        The free market doesn't distribute wealth fairly nor equally, nor should it. That's what socialism - the antithesis of the free market - tries to do. It could very well be that even if every nation in the world were as close to the free market as possible, that the U.S. could end up being one of the losers while many other nations wind up being the big winners.

        The free market doesn't guarrantee an increase in wealth for every part of the system, just for the system overall. Smith himself mentioned this but saw it as a good thing, standing apart from national interests to give a (mostly) objective rendering of his theory.

        As an American I'm concerned with the welfare of myself and my fellow citizens first and foremost, and this only makes sense. If I were more concerned about Nigeria, it would behoove me to move to Nigeria and become a citizen of that country, since I'm putting Nigerian interests before that of any other country. But seeing as how I'm an American and I don't have any hankering at all to be a Nigerian, my primary focus is on increasing the wealth of AMERICA. It would be incredibly stupid of me to sacrifice my own rational self-interest - along with that of my countrymen, my relatives, my friends, and my children - to argue for free-market economics in a situation where America stands to lose and others stand to gain. Deliberately depriving yourself, your friends, your family, and your chilren of opportunities, shipping them overseas for others to take advantage of, isn't 'altruism'; it's foolishness bordering on the criminal (or the insane).

        Oddly enough, both the Democrats and the Republicans argue that this is a good thing and that we do all this in accordance with the 'free market' (again, despite the fact that America isn't much of a free market). That selling out American workers is fine and dandy because it upholds the mantra 'free market', and that in some magical fashion all the jobs lost will eventually be made up through the invention of new technologies. In the interim between the old economy and the imaginary new one which has yet to come, we lose more than 2 million jobs, 1.1 million of which are replaced by jobs which pay nearly $9,000 less than the ones which were lost. Unemployment is still higher than it's been since the recession year of 1983, but so many workers have been off the unemployment rolls for so long the government no longer counts them - and therefore, in some bizarre bureaucratic fashion, they're no longer unemployed.

        (How all of this innovation is supposed to occur under the new IP laws is beyond me, but that's a discussion for the next RIAA/MPAA/Disney news item.)

        As the parent poster mentioned, the situation becomes even worse when you embark on free market economics with nations that themselves don't practice anything like the free market. Massive government intervention along with vastly lower standards of living almost assures movement of jobs from the free market (or pseudo-free market) nations to the non-free market nations. Exactly what we're seeing right now, actually.

        The only way to stem the tide is
        • by shobadobs ( 264600 ) on Wednesday September 15, 2004 @04:25AM (#10254216)
          No, free trade helps both countries. Just look at how hurt many industries were when Bush raised protectionist tariffs on steel: the steel industry was happy, but the rest of the country got hit with higher supply costs.
        • by smallpaul ( 65919 ) <paul @ p r e s c o d . net> on Wednesday September 15, 2004 @09:13AM (#10255399)

          As an American I'm concerned with the welfare of myself and my fellow citizens first and foremost, and this only makes sense. If I were more concerned about Nigeria, it would behoove me to move to Nigeria and become a citizen of that country, since I'm putting Nigerian interests before that of any other country.

          Frankly: I find this logic (common though it is in the US) to be totally bizarre. It makes no fscking sense. Try this analogy: "I understand that having free trade across county boundaries is good for the well-being of the entire State and even the country but as a resident of King County I put my needs above those of the rest of Washington State and those of America. If I was primiarily interested in the needs of (say) Orange County then I would move there. The job of King county's government if first and foremost to provide for King county residents: the rest of the country be damned."

          There are many levels of government and at this moment at the beginning of the 21st century we've somehow deluded ourselves into theinking that the nation is somehow special. During the early 20th century it was otherwise: most people thought that their allegiance belonged to their empire (which was larger than their nation). And before the civil war, many Americans had primary allegiance to their State, not to the federation.

          Each of these views was short-sighted and temporary. As yours is. Your allegiance logically belongs either to a community small enough that you can participate and influence it (i.e. municipality) or to all of humanity (based solely on the Golden rule).

          In fact, the *sole reason the government of the United States exists* is to provide for the American people.

          That is incorrect. The United States government exists to exercise the collective will of the American people. Sometimes this will is to "do good" elsewhere. It looks, for example, as if Americans will put George Bush back into power based on his (shaky!) argument that he is going to democratize the Middle East. It is also the case that many Americans criticize the Bush administration for doing nothing in Darfur. According to your theory, there is nothing to criticize because it would be a breach of responsibility for him to do anything. Ditto, I suppose, for the intervention in Europe in WW II.

          I am unashamed about the fact that my allegiance is first and foremost to humanity. My local national government has dual roles as the local provider of laws and a tool I use to advance the needs of human beings everywhere. When I look across a border and see human beings on the other side I don't see their needs as being less important than mine by virtue of the fact that they are on the other side of the border and neither should my government. That said: for practical reasons the government must distinguish between citizens and non-citizens and treat citizens differently.

      • by Genda ( 560240 ) <marietNO@SPAMgot.net> on Wednesday September 15, 2004 @07:07AM (#10254695) Journal
        The system is broken.

        We keep playing the game like it's an open system, and it never was, and now we are quickly discovering the end stops.

        Designing an economic model which awards wealth to those who grow, is doomed when a company, any company reaches market saturation.

        The American economy no longer exists, American business is multinational, global, and not limited to our borders. It finds cheap labor and brings the saving in production back to the U.S. where American consumers rejoice at the low cost of service and goods. Sadly it's all a sham. It's as unsustainable as a constant diet of junk food. It tastes good while you're eating it, but it's slowly killing you. It's all take and no give, the dollars fly out of the country faster and faster, until the nations fundamental wealth is gone, and the citizens of the nation notice they are now the collective bag holders.

        * Money that leaves never supports U.S. economy and infrastructure. * Money that leaves undermines U.S. labor, costing jobs and quality of living. * The growing gap between haves and have nots in the U.S. suggest a growing economic instability. Loss of jobs starting with manufacturing, but now quickly moving up through intellectual "white collar" professions, points to a growing joblessness with no end in sight. As the government services fail (and if you haven't been reading the paper or watching the news at 11:00, local government everywhere in this country is on the verge of collapse), the means to manage and provide basic life needs to the growing disenfranchised evaporates. The middle class vanishes. We are all reduced to the same level of living enjoyed by billions of starving people all over the world. Already 3% of our population owns 75% of the wealth, this is the greatest desparity in wealth in our history. And still the insanity accelerates. This is just the beginning ladies and gentlemen. What will you do, when your kids fresh out of college, with hundred thousand dollar college loans to pay, can't find work. What will you do, when you haven't received a raise in 4 years, and the boss says "Sorry, the work is heading to China."

        I've personally spent the last 6 months looking for work, I've had my resume tuned, I have 25 years of technical experience, and I've made it clear I'll do almost anything, and I have not had a single interview. I'm not alone, I have a couple hundred friends and acquaintances who've been unemployed for between 2 and 3.5 years.

        I keep hearing neocons mouthing the lines of Scrooge from a Christmas Carol... "the surplus population shold just get on with the business of dying...", or some variation of that. It's not bad yet. It may well get there. If it does, our government, is going to have a very bad time. Our society is going to have a very bad time. We need to begin addressing sustainable business practice from an economic, environmental, and ethics based context. To simply let the train go where it will is to insure a crash none of us will walk away from.

        Genda
    • by neitzsche ( 520188 ) * on Wednesday September 15, 2004 @12:27AM (#10253109) Journal
      "O Zarathustra," it whispered scornfully, syllable by syllable, "you stone of wisdom! you threw yourself high, but every thrown stone must- fall!

    • by AHumbleOpinion ( 546848 ) on Wednesday September 15, 2004 @12:29AM (#10253130) Homepage
      Those lost jobs, are they measured from when the bubble started, the peak of the bubble, a pre-bubble trend line predicting normal growth? India and China's high tech growth, is there a bubble over their? Have we, in typical American fashion, over reacted to one extreme and gone to the other? The only point I am trying to make is that things are far more complicated than a simple statistic suggests.
    • by Anonymous Coward
      india and china's economy growth is booming :)

      Bush was right, he IS creating jobs! Too bad they aren't in the US.
    • by hazem ( 472289 ) on Wednesday September 15, 2004 @02:28AM (#10253769) Journal
      Don't worry... their IT people will find Slashdot, and their productivity will drop like ours!
  • by Anonymous Coward on Tuesday September 14, 2004 @11:53PM (#10252855)
    I'm not the only one living with my mom again.
  • Politics? (Score:4, Insightful)

    by lawpoop ( 604919 ) on Tuesday September 14, 2004 @11:53PM (#10252860) Homepage Journal
    Doesn't this belong in politics.slashdot.org? ;)
  • nice (Score:4, Insightful)

    by Chuck Bucket ( 142633 ) on Tuesday September 14, 2004 @11:53PM (#10252861) Homepage Journal
    and outsourcing to other counties doesn't help. ppl need to realize that the IT gravy train is over, it's time to put up or shutup. certificates and degrees no longer hold the water they once did. find a skill, hone it, and hunker down, cause it's going to get windy before there's another round of jobs with the 'wow' factor.

    CB
    • Re:nice (Score:4, Insightful)

      by cubicledrone ( 681598 ) on Wednesday September 15, 2004 @12:32AM (#10253147)
      ppl need to realize that the IT gravy train is over, it's time to put up or shutup.

      Oh? So, what, 75 hour weeks instead of 70? I'm always glad to see "paying job" described as "gravy train."

      certificates and degrees no longer hold the water they once did.

      Best way to lower labor costs: raise qualifications to "unreachable" and ignore educational achievements. Now that's the way to build progress! Half of L.A. is illiterate (study released last week), and the other half is saying "so you graduated from college? Big fucking deal. Who gives a shit?"

      find a skill, hone it, and hunker down, cause it's going to get windy before there's another round of jobs with the 'wow' factor.

      I'd be impressed if there's another round of jobs at all. Skills are meaningless. Nothing is valuable to employers except the money grab.
      • Re:nice (Score:4, Insightful)

        by Xaria ( 630117 ) on Wednesday September 15, 2004 @01:39AM (#10253576)
        In Australia most good IT workers are on reasonable money (not always spectacular, but reasonable) and work ordinary 9-5 hours. There was certainly an IT downturn here, but it's not as bad anymore. I have friends in a global company, and when they fly to the US to work on projects over there they can't believe how little gets done in your 70 hours. I think a lot of the difference is in work-ethic. I'm told that in the US most people work away individually at their tasks. I'm told that people don't ask each other for help because it affects their likelihood of promotion. Over here, asking for help with a problem you're having difficulty with is expected and encouraged.

        There must be decent work in the US somewhere, and if it's not in IT then maybe too many people did IT degrees. That's not the government's fault, and even if it is they're not going to do anything about it. So either move overseas, re-educate, or find a way to differentiate yourself. Be the person who makes sure projects get done on time, even if you have to ask for help sometimes.
        • by Anonymous Brave Guy ( 457657 ) on Wednesday September 15, 2004 @07:29AM (#10254763)
          In Australia most good IT workers are on reasonable money (not always spectacular, but reasonable) and work ordinary 9-5 hours. [...] I have friends in a global company, and when they fly to the US to work on projects over there they can't believe how little gets done in your 70 hours. I think a lot of the difference is in work-ethic.

          That may be true, but there's also a much simpler explanation: saying that someone working a 70 hour week will be twice as productive as someone working a 35 hour week is simply wrong. In fact, as good management has long known, most people's performance degrades fairly dramatically not much beyond those 35 hours; you can do it for a short period in a crunch, but it's not sustainable. Moreover, the diminishing returns start to become negative after a while: someone who works 70 hour weeks regularly is likely to make so many mistakes that they become counterproductive, actually eating into other people's time to fix the problems they create.

          Can anybody remember the study (from Switzerland, I think) where a company dropped its work hours to 9-3 Monday-Friday and insisted its employees did not work significant overtime? Their staff were more focussed because they had limited time to get the work done, and because of the earlier finish they weren't always worrying about collecting kids from school, getting to the shops/doctor/dentist/post office, etc. Their productivity rocketed. I saw several reports about this, around the time of the tech boom when many companies were pushing for ever longer work hours, but I can't find a citation now...

      • Bingo. (Score:4, Insightful)

        by raehl ( 609729 ) * <raehl311@@@yahoo...com> on Wednesday September 15, 2004 @01:58AM (#10253647) Homepage
        Nothing is valuable to employers except the money grab.

        You can either be worth more to an employer than what they pay you, or you can start your own company and pay people less than what they are worth to you. Your call, but that's what makes the employment universe go around.

        BTW, I'd advocate the second option, but most people are too lazy for that.
  • by Izago909 ( 637084 ) * <tauisgod@[ ]il.com ['gma' in gap]> on Tuesday September 14, 2004 @11:53PM (#10252862)
    I thought Bush has created more jobs, and that the recession was over. I can't believe the Washington Post would try to sneak such false statements [washingtonpost.com] into the transcript of the Presidents address at the RNC. They must be French owned.

    BTW, Here [bugmenot.com] is a login for the Post.

    And before anyone get's pissy, may I remind people that flamers are joyless, humorless, SOB's. Don't trust a person who can't laugh.
    • by Brandybuck ( 704397 ) on Wednesday September 15, 2004 @01:18AM (#10253442) Homepage Journal
      Considering that the dot.bomb came out of the Clinton administration, I really can't blame Bush too much. I know that will cost me karma, but my honesty won't let me blame him just because it's the karma-enhancing thing to do.

      I'm not a Bush supporter. I did not vote for him last time and will not vote for him this time. But that doesn't mean I have to kick him in the nads for something he didn't do. The tech industry crash might not have been caused by Clinton, but it started on his watch. Considering that it was a market correction, I can't blame Bush for not getting us back into an artifical bubble of paper millionaires.

      Our IT jobs are going overseas because we spent most of the Clinton years wallowing in six-digit salaries and stock options while the average worker didn't have half our income. We priced ourselves out of the market. We demanded pool tables and laundramats in our workplace, and we got them. I'm not talking about the top people in the field, I'm talking about Joe-Schoe the code monkey. Starting salaries were in the $50-75 range.

      I'm not blaming Bush, I'm blaming the collective "we".
      • by Civil_Disobedient ( 261825 ) on Wednesday September 15, 2004 @03:48AM (#10254103)
        The tech industry crash might not have been caused by Clinton, but it started on his watch.

        I'll agree with you on this point. But there are smart things you can do, as president, to minimize the impact of such a crash, and then there [aflcio.org] are [findarticles.com] dumb [usatoday.com] things [kniff.de] you [cato.org] can [cnn.com] do [bushtax.com] that will only exacerbate the situation.
  • by usefool ( 798755 ) on Tuesday September 14, 2004 @11:55PM (#10252873) Homepage
    While the IT job market has shrunk by close to 20%, how does the industry do? Was profit/revenue etc down by similar margin as well?
  • by Ars-Fartsica ( 166957 ) on Tuesday September 14, 2004 @11:55PM (#10252874)
    If you work in one of the industries of the nineteenth century, namely farming or steel, the politicians call you "regular Americans" and bail you out with subsidies and trade protections. If you are one of the far more numerous IT workers whose taxes bankroll the nation, you get a shrug and a suggestion you go back to school.
  • by Chuck Bucket ( 142633 ) on Tuesday September 14, 2004 @11:56PM (#10252881) Homepage Journal
    Any idea how many less jobs are available for new grads? This could have a turnaround effect on college degrees as well, something I don't think our pro-outsourcing President considered.

    CB*(_)&
    • by C60 ( 546704 ) * <salad.carbon60@net> on Wednesday September 15, 2004 @02:59AM (#10253921) Homepage
      This is probably going to get my flamed to hell, but screw it.

      Join the military. Frankly, that's where the .gov is spending all the money. As a college grad, you start out with a rank increase, there are programs where they will pay off your loans. Add to that the fact that they will train you in the practical application of your skills, they'll pay you to continue going to school while you're in the military, and unless you're a total screw up you've got a fair paying job for at least 4 to 6 years. And it really is fair paying, as you get a paycheck, a housing allowance, and a food allowance, not to mention a whole crap load of other potential bonuses like extra pay for knowing a second language.

      The .mil of today isn't like the .mil of 10 years ago. When I started out in the IT industry the thought of the military was not even on my radar. After 2 years of being unemployed from the IT industry I started to really stretch my idea of what was acceptable and did a lot of research, and frankly, as a second career, the military really isn't all that bad as long as you aren't infantry. It's the only place where I can make a living, go back to school, and not be penalized by management for it.

      And to be honest, with the discussions flying around about reinstating the draft, it's a great way to avoid being drafted ;)

  • by Cryofan ( 194126 ) on Tuesday September 14, 2004 @11:59PM (#10252899) Journal
    They are doing to us IT workers what they did to advanced, capital-intensive manufacturing jobs in America (as opposed to "assembly jobs"): they spirited it away to Asia. And we could have stopped it with trade barriers. But they sold us on neoliberal trade policies with $24 worth of trinkets.

    Read here:

    >>>>>>>>
    commentator Eamonn Fingleton speaks bluntly about what he sees as the frittering away of the United States' manufacturing base and what he regards as the consequent stagnation of the American standard of living. For those who believe in the superiority of the current U.S. postindustrial strategy, a reading of the OECD Economic Yearbook makes for a distinctly chastening study. As Fingleton puts it: "The United States trails no fewer than eight other nations, all of which devote a larger share of their labor force to manufacturing."

    Fingleton, who distinguishes between high-end and low-end jobs, insists that the former, advanced manufacturing, must be reconstituted if the United States wants to remain a superpower. And what are these eroded industries? Semiconductor materials, ceramic packaging for semiconductors, charge-coupled devices (CCD), industrial robotics, numerically controlled machine tools, laser diodes and carbon fibers, to name only a few.

    Where did the manufacturing of these items go? In most cases, Japan now dominates the more advanced areas of these industries, says Fingleton, who lives in Tokyo. Moreover, he argues, by dint of superior know-how and large capital investments Japan now enjoys a global lock on key manufacturing processes.

    Fingleton recalls an America where men and women went to work and made the nation great, the old-fashioned way, by producing products people wanted and needed. And he juxtaposes the loss of advanced manufacturing jobs in this country with what he regards as the overvalued dollar, America's compulsion to borrow huge sums of money to fund its deficits and an illusionary U.S. prosperity based on unsustainable debt. For now Japan and China, both running huge trade surpluses, pay the United States' bills, he says. Where does this leave the American worker? He puts the answer simply: Out of work!

    It is not true that Japan is in dire economic straits, Fingleton maintains. In a recent article in the London journal Prospect entitled "Japan's Fake Funk," he writes: "The Western consensus is that Japan is a basket case: It is not. That is a misreading by the West."

    Meanwhile, he says, ill-conceived U.S. policies have failed to protect home-based American industries, leading to the transference of the most advanced technologies known to mankind. Fingleton says flatly that Japan has built up its industrial base at the expense of the United States, and that China now is chomping at the bit to do the same. ....

    Eamonn Fingleton: I mean those engaged in advanced manufacturing. Specifically, industries that are both highly capital intensive and highly know-how intensive. They typically are many orders of magnitude more capital-intensive and know-how intensive than the most advanced of "New Economy" services, such as computer software developed in the last three decades.

    Although Japan is known in the West for its leadership in certain consumer products such as cars and television sets, its area of greatest leadership is in much more advanced industries that largely are invisible to the consumer. Specifically, Japan leads almost right across the board in the sort of advanced materials, high-tech components and production machinery that are driving the electronic revolution. Some products may be assembled in the United States, but their key manufacture - the manufacture of the advanced components and materials - is done in Japan. ....

    much more here: http://www.pushhamburger.com/edge.htmEconomic
  • by Omega1045 ( 584264 ) on Wednesday September 15, 2004 @12:04AM (#10252942)
    While I believe that many jobs may be heading overseas, I also think that our universities and tech schools were pooring out IT workers like crazy in the late 1990s, and companies were hiring them in an artificially inflated economy. Anyone remember the certification craze? Instructors were making huge bank! Every college in the nation beefed up their CompSci and computer related programs.

    Additionally, there were so many idiots in technology by 2000. Sysadmins that didn't know the dif between Cat3 from Cat5, programmers that didn't know what a for-loop were getting 100k Java jobs, etc, etc, etc. I don't know if there were 400k, but I do think that a lot of people lost jobs that didn't deserve to have them. Also, I have had a lot of very smart friends out of work that did.

    Even in 2000 and 2001 there were still tech areas hiring. I really wonder how many of those 400k were jobs that should never have existed in the first place?

    Just some random thoughts on the subject.

  • 400k sounds low (Score:3, Interesting)

    by Wansu ( 846 ) on Wednesday September 15, 2004 @12:06AM (#10252961)


    I've seen estimates much higher.

    Read some of Paul Craig Roberts columns on http://www.vdare.com/roberts/all_columns.htm. I agree with his assertion that we're exporting jobs that provide ladders of upward mobility and importing poor people. He makes the case that this is not free trade but global labor arbitrage.
  • by Anonymous Coward on Wednesday September 15, 2004 @12:07AM (#10252965)
    Predicted weather report from Microsoft's Bangalore Campus: Warm and dry, with temperatures reaching 30,000 degrees Centigrade, winds at 4000 kilometres per hour.

    It's a pleasant day to take a break: step outside, get some vitamin D and experience the full power of Shiva's spear.

  • by gmajor ( 514414 ) on Wednesday September 15, 2004 @12:07AM (#10252973) Journal
    One of the expectations of outsourcing programming jobs to lower wage countries is that the number of higher paying, project management jobs will increase. Anyone out there who made the leap from programming to project management (or know someone who has)? If so, how did you go about it?

    And is there a greater demand now for project management jobs?

    On a similar note, it seems to me that the number of consulting and professional services jobs have increased as of late. However, many of these jobs do not pay salaries comparable to programming jobs during the late 90's. I could be wrong about that though.
    • by dffuller ( 200455 ) on Wednesday September 15, 2004 @12:17AM (#10253039)
      First you have to get the lobotomy.
  • Grr... (Score:5, Insightful)

    by iamdrscience ( 541136 ) on Wednesday September 15, 2004 @12:08AM (#10252981) Homepage
    I'm really concerned that the prevailing opinion on Slashdot seems to be that outsourcing is horrible. I hate that it's hard for people to find work and that many IT workers have lost their jobs, just as much as anyone else, but stopping outsourcing is not the solution. We operate in a global economy, if companies did not outsource then they would not remain competitive in the global market and you would all lose your jobs. Despite the temporary hardships of the people who have lost their jobs, this is, in the end, for the good of the U.S. economy. It's just a restructuring of the work force right now.

    I'm sorry if anyone here disagrees (and I'm sure there are those who will) but I really think you need to look at the big picture and I hope you'll agree that it's for the best for all of us, despite the temporary problems it's causing for many of you.
  • 1 in 5 jobs gone? (Score:3, Interesting)

    by here4fun ( 813136 ) on Wednesday September 15, 2004 @12:08AM (#10252982) Homepage Journal
    In all, the job market for high-tech workers shrank by 18.8 percent

    If anything, new college students should be told how many people in the 90's picked computer science as a major because some magazine which ranked salaries said CS was #1 in pay and projected growth. Better to study something which is interesting than to go for the money. I knew a guy in college who was an english student. Everyone asked him, what are you going to do with an english degree. He shruged his shoulders, and said "dunno, but i like reading". After college, he got a masters, then found a teaching job. He makes more than some of the CS people I knew, and he gets the summer off. The kicker is he is doing what he likes. And he was supposed to be the poor one.

  • by earlgreen ( 776222 ) on Wednesday September 15, 2004 @12:09AM (#10252988)
    Why can't these studies ever give some indication of the number of jobs added during the bubble before the recession? And how about some info on number of people seeking the available jobs? Without that kind of background info, these numbers are useless.

  • by MarkPNeyer ( 729607 ) on Wednesday September 15, 2004 @12:09AM (#10252992)

    Two consecutive quarters of negative growth consitute a recession. That's what the term means, and so there isn't anthing inaccurate about saying that the small recession we had ended years ago, even if the job situation is sucky right now

    As for the current lack of jobs and the patchy situation of a lot of americans, you can take it one of two ways.

    1. You can take it as a sign that the U.S. economy is falling apart
    2. Or, you can view it as a low point in an otherwise unstoppable march of progress.

    I choose the second option. Make fun of him all you want, but Schwarzenegger said it best - don't be a girlie-man economist. It used to be that germany and japan were going to crush our economies and that all americans were poor. Then, in the early 90's, many americans bought into the idea that NAFTA was a terrible peice of legislation that was going to send all of our jobs to mexico. There's never going to be a shortage of pessimists and naysayers claiming that now things are different - now, this time our economy is in trouble unless the government can do something to stop it.

    They're wrong. They've always been wrong, and they will always be wrong. Don't buy into the pessimism and anti-trade rhetoric out there. If you've lost your job due to oursourcing, of course that sucks. But no one ever accomplished anything by being pessimistic and complaining about their situation. Get out there and look for a job - any job. Don't tell yourself that you can't find one or that there aren't any - negative predictions are self-fulfilling. It's far better to be foolishly optimistic about your situation than needlessly pessimisstic.

    The US economy is an incredbily powerfull beast that has brought incredible wealth to millions of people. It's not going to stop working over night. Current trade situations are a result of an economy out of equilbrium. It'll adjust itself, and then we'll be back on track and new jobs will be created and we'll all be wealthier- you'll see.

    • by GOD_ALMIGHTY ( 17678 ) <curt DOT johnson AT gmail DOT com> on Wednesday September 15, 2004 @02:18AM (#10253719) Homepage
      No slave ever got freedom by happily pleasing his masters.

      Again, bad logic. You've provided a false dichotomy. Choose the second option all you want, it doesn't mean it's based in reality. NAFTA did send a lot of jobs outside the US, go ask anyone who lost a manufacturing job to Mexico. Outsourcing is a bad deal. It's sending middle class jobs and a strong tax base overseas for what? What has come back? Where are the new industries building on top of this and creating jobs? Why would you even start that industry in this country instead of India?

      Your response to someone telling you that you got screwed in a business deal is "don't be a girlie-man economist"? I call it being stupid, but don't take it from me: I Am an Economic Girlie-Man [Motley Fool Take] September 1, 2004 [fool.com]

      Free Trade only works among equals. We are not equal to any other country or economy in the world. Free Trade is a one way street for this country where we lose. Fair Trade is the only way we can grow and ensure that the promises of globalization are realized.

      The current situation is being buoyed by the floating of our currency by China and other developing countries so that they can artifically lower their currency and keep the growth coming at our expense, literally.

      You're solution is to smile while we trade good middle class jobs and quality American products for cheap Chinese crap at Wal-Mart and non-service from India. Excuse me if I hold higher asperations for my country.
  • by Noginbump ( 146238 ) on Wednesday September 15, 2004 @12:15AM (#10253017)
    This says it all:
    The report, funded by the Ford Foundation, was conducted for the Washington Alliance of Technology Workers, a Seattle organization that wants to unionize workers at Microsoft Corp. and other technology companies.


    What? You want to send my job to India? How about I strike for higher wages instead?
  • by emarkp ( 67813 ) <[moc.qdaor] [ta] [todhsals]> on Wednesday September 15, 2004 @12:21AM (#10253053) Journal
    The recession begin Oct 2000, not Mar 2001. Note the DJ [yahoo.com] from the era.

    And is it really any surprise that after the bubble burst jobs were lost? Here's a reality check: those jobs were based on wishful thinking. They had no foundation. No offense to those who lost a job in the downturn, but I've met a number of so-called IT workers who were barely HS grads with an MCSE during the boom.

    Color me not-terribly-surprised.

  • Not the whole story (Score:4, Interesting)

    by AJWM ( 19027 ) on Wednesday September 15, 2004 @12:26AM (#10253099) Homepage
    This is only looking at a segment of the IT industry -- software developers. Sure, it sucks if you're one of them and out of a job (been there, etc).

    On the other hand, the demand for sys admins, security specialists, DBAs, etc seems to be increasing. Pay rates vary all over the board depending on experience and particular skills (and how cheap the company is), but this is nothing new.

    Locally I've seen a big turn up in demand starting about six to nine months ago. And that's not counting the huge demand that exists for anyone with a computer background that also has (or had and can renew) a security clearance. (And you know those jobs won't be outsourced.)
  • And (Score:4, Interesting)

    by cubicledrone ( 681598 ) on Wednesday September 15, 2004 @12:26AM (#10253103)
    the number of employed Software Engineers fell by 15% from April to July of 2004 (from 856,000 to 725,000)."

    Yet nearly every business uses computers. The entire economy is practically based on computers, yet there are fewer than 800,000 software engineers? Glad to see all that time (and overtime, and weekends, and vacations) spent learning as much as possible about technology was completely wasted.

    Nope, no free market here either.
  • by Ralph Spoilsport ( 673134 ) on Wednesday September 15, 2004 @12:27AM (#10253111) Journal
    and they said that local to the Bay Area, it's MUCH much worse. Overall things are down 18%, but in the San Francisco Bay Area,

    it's down 48%.

    Thanks, George. You useless freakin Dork.

    RS

  • by stox ( 131684 ) on Wednesday September 15, 2004 @12:28AM (#10253123) Homepage
    That profession's that have been traditionally supporters of the Democrats have been slaughtered, while the professions that have been Republican have prospered?

    Obviously, since some are doing very well, the failure of the other must be their own fault.

    Yup, nothing to see here, move along.
  • Get Out Now! (Score:3, Insightful)

    by pudge ( 3605 ) * <slashdot.pudge@net> on Wednesday September 15, 2004 @12:29AM (#10253128) Homepage Journal
    The problem with the tech market is too many people got into it. In the late 90s, everyone got in the market, and we all know that many of them were not qualified. Some cab driver learns Word and Dreamweaver, gets a job, and then gets laid off because he never should have been hired in the first place, and he blames George Bush and people in India.

    This isn't too complicated: the tech market had a huge boom in the late 90s, it crashed in 2000-2001, and companies cut way back in personnel to where they should have been in the first place, and many people got displaced. The simple fact of the matter is that there were just too many workers, and those jobs are not coming back, because the market cannot support them, and therefore should not support them.
    • Re:Get Out Now! (Score:3, Insightful)

      by Bombcar ( 16057 )
      Preach it, brother!

      All the people at my company who were important and doing work in 1996 were there in 2000 and still there in 2004. People who have real skills are in great demand, especially now.

      People without skills are only in demand when they're trying to get investors and want to say they have 100 "Certified" engineers.
    • Re:Get Out Now! (Score:4, Insightful)

      by Roger Keith Barrett ( 712843 ) on Wednesday September 15, 2004 @01:37AM (#10253568)
      I would be apt to agree with you DURING the boom, but now I don't think I can.

      It's the WELL EDUCATED workers that are suffering most in this I.T. backlash, not the lower end guys. The people being hired are the guys from the community colleges that are sharply focused... they might be able to code Java well but that's all they can do. They are paid on that level, too... they (that is the H.R. heads) don't want to pay the people with the real knowledge, those that can learn on the fly because they have all the background to do it. It would cost too much.
  • Wheat/Chaff? (Score:4, Insightful)

    by Arrgh ( 9406 ) on Wednesday September 15, 2004 @12:39AM (#10253200) Homepage Journal
    All the nerds I know who are smart and experienced and competent are at least as employed as they want to be. I've interviewed a couple dozen people for software development/management jobs in the last 18 months, and didn't see a lot of truly great candidates--by and large the good ones are still working, and we mostly saw marginal candidates.

    Times may be bad now but I think the late 90s "golden age" of companies trying desperately to fill seats with warm bodies is long gone. The free ride is over, and if you're not noticeably great at your job, your employer will eventually realize that there are a lot of people out there who can do it just as well, a great many of whom are willing to do it for less.

    There are a lot of world-class techs in India and other outsourcing hotspots, and even factoring in the costs and risks some companies report when outsourcing, it's more and more of a numbers game every month.
  • Oversupply (Score:3, Interesting)

    by vijayiyer ( 728590 ) on Wednesday September 15, 2004 @12:59AM (#10253333)
    That's what happens when everybody decides to go into a field to make big bucks. You have an oversupply of labor. And when that labor won't take lower pay because the market value is lower, you get unemployment. Luckily, I ignored the advice and didn't go that route.
  • Fake IT (Score:4, Insightful)

    by Doc Ruby ( 173196 ) on Wednesday September 15, 2004 @01:44AM (#10253606) Homepage Journal
    I can't help but wonder how many cabdrivers and their ilk, who asked me in the late 1990s how to "learn computers", are counted in those unemployed "IT workers"? Corporate management spawned thousands of HTML "programmers" who learned from books for "Idiots". How many graphic artists are still kidding themselves into applying for programming jobs, or at least saying so on their unemployment forms? The entire IT industry was destroyed by Baby Boomers who always believe everything they see on TV, and stayed glued to market-watch programs that peddled anything that said "Internet". We turned the profession into a joke, with no necessary qualifications, and now the joke's on us. Too bad we can't even distinguish the unemployed programmers from the unemployed fauxgrammers.
    • by xyote ( 598794 ) on Wednesday September 15, 2004 @09:34AM (#10255571)
      Despite being an expert in lock-free multi-threading (or at least playing one on usenet) and having citations in some of Paul McKenney's later RCU papers and in the latest Linux RCU documentation patch, I'm having difficulty finding work. Now I realize it's because I'm a fake.

      And all this time I though it might have had something to do with my resume sucks because it doesn't look like an HR wet dream. Or maybe something to do with age bias, I'm older than 20. Or maybe that companies are reluctant to hire even when they're severely understaffed. You figure something is up there when you seen the same job posted for over a year.

      Look, all the dotcommers who where cabdrivers and pizza delivery guys have long gone back to their old jobs. They have previous experience that allows them to do that. Have you ever tried to break into another trade when all you have is programming experience? I have news for you. You are considered totally unskilled and your competition for the jobs that take no skills are the dregs of the workforce and they are willing to work for a lot less than you are or even can. Ever try to live on sub minimun under the table wages?

      There's some kind of psychological factor here that kicks in when bad things happen to other people, that people use to convince themselves it won't happen to them because the people it did happen to somehow deserved it or brought it upon themselves. Nope. It's pure luck. You either got laid off or did not get laid off. Getting a job again seems to be pure luck (though personal connections or having a HR wet dreame resume seems to help). Think otherwise? Go ahead and quit your job and find out.

  • I'm OK with that. (Score:4, Insightful)

    by NerveGas ( 168686 ) on Wednesday September 15, 2004 @02:39AM (#10253817)

    Really, I am. You see, for years I've been putting up with "I'm a techie, too!" people. The kind that have no idea what they're doing.

    They're people who go to a two-week certification class. They're people who take a 6-month class. They're people who go to ITT for two years. They're people who learned everything on their own. And they're even people with four-year degrees.

    For every 100 people that say "Yeah, I work with computers, too!", I'm lucky if I meet three or four that actually have a clue, and (here's the important part) actually have any marketable skills.

    Yes, they're the ones that whine and moan that "the market is flooded", "you can't get a job in (insert state name)", "it's all these people willing to work for nothing", or "the economy is so horrible."

    I know a lot of people who make their living with computers. And while "the economy was bad", I can honestly say that the job difficulties they faced were inversely proportional to their expertise. The better they really were, the less trouble they had.

    When we put an ad in the paper for a programmer who (a) has used Perl in a CGI environment, (b) has some knowledge of SQL, and (c) has some knowledge of HTML, you'd be amazed at how many applicants we get - literally, hundreds. And again, literally, without any exageration, over 85% of the applicants do not meet those requirements in any way, shape, or form. We're lucky if we get three or four people out of 150 applicants that can really say that they're proficient in those three areas - and to me, that's not asking much at all.

    The sad fact is that the tech job market was massively, grossly over-inflated during the "dot-com craze", and is now back at a more reasonable level. Yes, I know, that makes it tough for all of the "But I want to be a programmer, too!" people, but that's just fine. They've been making it tough on the rest of us for quite some time.

    steve

  • by SurfTheWorld ( 162247 ) on Wednesday September 15, 2004 @09:33AM (#10255559) Homepage Journal
    The late 90's tech boom served to employ anybody and everybody that had even looked at a computer (or knew how to spell 'computer'). This was unnatural. The money pumped into the tech market in the late 90s attracted unqualified workers motivated by greed more than anything else.

    Think about how many people you looked to in the late 90s, early 2000's and thought "how have you managed to stay employed?!".

    Part of the contracting phase of the business cycle involves the shake-out of the inefficient firms from the market. Those are the firms that waited for the early-adopters to get the results of their litmus test of the market, and upon seeing positive results, entered the market and tried to capitalize on their status as late early-adopters. When their particular market turns south, the early-adopters of technologies remain (mostly because they really believe in their technology) while the late early-adopters are shaken out (by the lack of demand for product) and move on to another field. This is normal!

    I view the decrease of tech jobs in a positive light. I know construction workers, electricians, and even day care specialists that went into the computer industry in the last 7 or so years. They made some cash, didn't really bring much value (because they lacked expertise), and now that the market is harder, they're going back to their old jobs. This is good! What you want is a computer industry with highly skilled workers. You don't want a computer industry where every person in the US is a candidate.

    Yes, jobs have decreased 18.8% since 2001. But if the job count was 2000% higher than what the market could support, 18.8% doesn't seem so large anymore.

    On a side note - look what happened to NASA in the past 40 years. NASA used to be a place where only the best-of-the-best were employed (back in the 60s). Very few people could go work for NASA, and terms like "rocket science" were used as a form of respect. Nowadays, NASA is a cross-section of the US population, unmotivated, bloated, and over-weight. NASA is stupid these days, and can be looked at as a laughing stock. Why? Because NASA opened their doors to everyone (not just the elite) and the influx of stupidity forever dumbened the culture. Now we have shuttles that fall out of the sky, satellites that burn up on entry into orbit due to metric to english conversion, and 3 years worth of science "wobbling" and "tumbling" it's way back to Utah.

    Do you want the computer industry to become what NASA has become?

    -c

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