The Tech Job Paradox

Rob Hof

On the surface, this new reportfrom the outplacement firm Challenger, Gray & Christmas looks pretty positive: High-tech job cuts fell 23% last year. But dig a little deeper, and the future still looks grim for the poor tech worker. Nestled at the bottom of Challenger Gray's press release is this damning observation by CEO John Challenger: "The future for this sector could be characterized by a seemingly contradictory co-existence of heavy job cutting along with severe labor shortages."

This paradox can't be good for either tech companies or the people who work for them. Honestly, it's hard to know who's to blame: Corporations that make empty calls for better education while asking for more tax cuts? Schools out of touch with the current economy? Workers who fail to take the initiative to retrain themselves? Probably all of the above. Even if tech locomotive continues to chug along in 2005, it's going to be a rough ride for everyone on the train.

Before it's here, it's on the Bloomberg Terminal.