Tags: Tech | Sector | Loses | Rising | Unemployment

Tech Sector Weakens Amid Rising Unemployment

By Dan Weil   |   Wednesday, 08 Sep 2010 03:19 PM

The technology sector is losing strength, just as the economy needs it to help prevent a double-dip recession. 

And the culprit is unemployment. Total payrolls in some specialties, such as data processing and software publishing, have dropped over the past year, The New York Times reports. And few jobs have been added in areas such as computer systems design and Internet publishing,

The jobless rate for computer scientists, systems analysts and computer programmers registered about 6 percent in the second quarter.

While that might sound good compared to the August rate of 9.6 percent for the economy as a whole, it’s not encouraging for a sector that has led the way for the past 20 years.

“We are talking about people with very particular, advanced skills out there who are at this point just not needed anymore,” Bart van Ark, chief economist at the Conference Board, told The Times.

“Even in this sector, there is tremendous insecurity.”

Outsourcing is a problem. “There’s been this assumption that there’s a global hierarchy of work, that all the high-end service work would stay in U.S.,” Hal Salzman, a public policy professor at Rutgers University, told The Times.

“That hierarchy has been upset.”

Not everyone is so concerned.

While tech jobs have dropped 15 percent in Massachusetts since 2001, it still has many tech businesses expected to grow sharply in coming years, Denis McSweeney of the U.S. Bureau of Labor Statistics told The Boston Globe.

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The technology sector is losing strength, just as the economy needs it to help prevent a double-dip recession. And the culprit is unemployment. Total payrolls in some specialties, such as data processing and software publishing, have dropped over the past year, The New...
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2010-19-08
 

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