Jul 18, 2024 - Business
The rise and fall of software developer jobs
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Demand for software developers has plunged from the boom times of 2021 and 2022.
Why it matters: Even though the labor market remains strong, the supply of higher-paying white-collar jobs (tech, marketing and finance) is pretty meh.
- These positions, "what we once would've called office jobs," are the weakest spot in the labor market, says Nick Bunker, an economist at Indeed.
Catch up fast: There was a pandemic hiring frenzy for these roles. Workers were fielding multiple calls a day from recruiters and naming their price when it came to salary.
- Now, companies are slower to hire now and less willing to expand headcount, Bunker says.
- The decline in demand is likely not an AI thing — the drop-off started before the introduction of ChatGPT.
The big picture: These are still among the best jobs around.
- Software developer is ranked second on the Labor Department's list of occupations with the most projected job growth over the next decade or so, coming in after home health aides.
- And the pay is good. The lowest-paid software developers, located in the Cleveland metro area, earn a median salary of more than $100,000 per year, per a study from ADP last month. The highest paid work in Silicon Valley and earn a median of $163,000.
The bottom line: Good jobs are harder to find.
