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Software engineering job openings hit five-year low?

https://blog.pragmaticengineer.com/software-engineer-jobs-five-year-low/
The charts show software dev gaining more jobs under the COVID demand and stimulus swing, and then losing more as those went away and monetary policy got tighter than even it had been even before the COVID stimulus.

The easiest explanation for the whole chart is "Software dev is more reactive to the monetary policy environment than most other industries, because more of it is funded by new capital investment -- whether VC money or otherwise -- instead of ongoing operations of stable firms compared to most other industries."

Trying to add other explanations is fun, but there's not a lot of evidence for any of them, or even that more explanations are needed.

How are sec 175 changes in the US not also a top explanation? This has a massive cost to small businesses and startups trying to hire software engineers, and a big impact to any team trying to grow.
Because the data doesn't match. The author addresses this in his blog post -- essentially every country has the same graph of SWE jobs, but only the US has sec 175.
Big tech layoffs were a global issue and U.S. tech firms hire (and fire) globally. So like it or not, U.S. economic issues have a downstream impact around the world.

Sec 175 especially hurt small to mid-size tech companies (especially fast growing ones...) which I imagine amplified the problem across the board.

> How are sec 175 changes in the US not also a top explanation?

You mean the change from deductible as a current expense to five-year amortization under changes to Sec 174? In an easy money situation, the way it increases tax liability in year one while decreasing in year 2-5 is not a big deal, it becomes more of an issue as the cost of financing goes up, so the main effect is to increase the already-high sensitivity of software development to tightening credit.

Or, to put it in another way, the amplitude of the pork cycle (https://en.wikipedia.org/wiki/Pork_cycle) is higher for software developers than for other jobs.
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I tend to agree with you, if only because the swing in Europe on the IT job market has had less amplitude and is more spread out, similar to the difference in stimulus policy.
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The most likely explanation is fraud
Kind of makes you wonder what percentage of software devs are actually working the famed "bullshit jobs"?
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By the time our work hits stable/ongoing operations, it's well on the path to outsourcing

... to begin the loop again

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Companies have moved away from tech innovation driving growth. Instead they’ve realized they’re defending mature, boring business models. They need to keep the lights on with some good-enough engineers.

Just think how much the investor narrative has shifted from early 2020s. Back then everyone talked about the business areas they were expanding into using tech. Now, investors get hyped up when you do the same thing, at lower cost. Less about growth, more about predictability. Which makes sense. Do investors view Amazon as a high tech company (as in 2020 and before) or a predictable business? dare I say utility?

It explains layoffs, forced RTO, etc. They simply don’t care if even their best leave. Their MBA executives know optimization/keeping the lights on - and less about innovation.

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yet hiring is as difficult as it's even been
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Are SAAS and frameworks getting that good that we need software plumbers and fewer software engineers?
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