Section 174 is the feedback loop that will eventually wipe out a lot of the strategic advantages in the US tech industry--it'll take a bit since these levers are often controlling very slowly changing stocks, but it's ultimately a disastrous update. People should be screaming about it from the rooftops. Not only will it dissuade people from starting companies, but it'll drive companies that could've otherwise been bootstrapped into institutional VC arms, will slow growth for everyone, and will (and is) affect peoples' capacity to find good jobs.
Ask HN: Shift in the job market here to stay?
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Re: Ask HN: Shift in the job market here to stay?
#12I think it might slowly going to be the new normal even post ZIRP. I say this because lots of the companies that employed software engineers were internet related businesses or their dependent and descendent businesses (think various SaaS tools) and now that market has its winners and takers almost established, there's also the market saturation. Nobody is building new Facebook, Google and such and even if someone is…
I mean, TikTok and ChatGPT came up extremely quickly. BeReal grew rapidly. People can and still do build disruptive software.
Re: Ask HN: Shift in the job market here to stay?
#13The job market shrunk but the money spent in tech is still there. Most of the companies laying off are still seeing revenue growth. There is no solution to find a job like before, the solution is to take a chunk of big tech revenue. Starting by stopping buying from them.
Re: Ask HN: Shift in the job market here to stay?
#14There's just less money available for startups and all companies are rightsizing which means there are fewer open positions. You'll need to be more strategic in your job search. You'll need to ask colleagues and friends for leads. You'll also have to pick companies you want to work for and investigate what positions they have open and tailor your resume accordingly. Networking is the best way to get a job now. Throwing your resume out there and hoping someone will call will no longer work.
You'll have to adjust to the current situation. There will be another growth cycle but it will be a few years from now. It doesn't look like we are heading toward a recession but investors and companies are being careful. I suspect it will take 3 plus years to thaw but hiring is unlikely to ever be as loose as it has been in the last decade. A period when companies were throwing perks left and right just to attract workers.
Re: Ask HN: Shift in the job market here to stay?
#15I think it might slowly going to be the new normal even post ZIRP. I say this because lots of the companies that employed software engineers were internet related businesses or their dependent and descendent businesses (think various SaaS tools) and now that market has its winners and takers almost established, there's also the market saturation. Nobody is building new Facebook, Google and such and even if someone is…
I mean, TikTok and ChatGPT came up extremely quickly. BeReal grew rapidly. People can and still do build disruptive software.
This was before the hike in interest rates though, wasn't it?
Re: Ask HN: Shift in the job market here to stay?
#16Section 174 is the feedback loop that will eventually wipe out a lot of the strategic advantages in the US tech industry--it'll take a bit since these levers are often controlling very slowly changing stocks, but it's ultimately a disastrous update. People should be screaming about it from the rooftops. Not only will it dissuade people from starting companies, but it'll drive companies that could've otherwise been bo…
Can you connect the dots for me back to OP's application response rate? It's not exactly clear how 174 relates specifically to response rate.
Re: Ask HN: Shift in the job market here to stay?
#17There are at least three active threads on this subject right now. I too had 15 years experience with lots of open source history. My solution to this problem was to change career. If you are already vastly superior to your peers in your capabilities and solution delivery then skilling up will only make you more incompatible to the average developer employers expect to hire.
There are some hard realities you need to accept about software that have resulted in massive swell over the past several years. Now the industry is contracting in response, but without clear candidate or leadership solutions.
In most cases the need for experts is gone and replaced by a variety of tools. If you to be an expert redirect your attention to less popular languages like Rust and Zig where there is less applicant noise. Otherwise you are competing against expert beginners that configure tools instead of writing original software.
There is some excellent leadership in software, but that is exceptionally rare. To be an excellent developer you need to score extremely high in both agreeability and conscientious so that you are really good with the details and willing to go above and beyond to build a more durable product. To be a good leader you need to push that agreeability way down so that you build a lust for confrontation with high empathy. Good leaders really tear into people to discover why they are failing to perform and how to redeem or remove them. Most developers are exceptionally bad at this.
I suspect AI will correct for a lot of this by eliminating the need for developer pretenders, but that is still a few years away. For example why hire a framework junkie when AI can write equivalent solutions faster and cheaper. Even once the capabilities are confidently available employers will still have to go through their own reckoning to make hard financial decisions about their current approaches and software employees.
Re: Ask HN: Shift in the job market here to stay?
#18Section 174 is the feedback loop that will eventually wipe out a lot of the strategic advantages in the US tech industry--it'll take a bit since these levers are often controlling very slowly changing stocks, but it's ultimately a disastrous update. People should be screaming about it from the rooftops. Not only will it dissuade people from starting companies, but it'll drive companies that could've otherwise been bo…
Can you connect the dots for me back to OP's application response rate? It's not exactly clear how 174 relates specifically to response rate.
It closed a tax rule that allowed companies to write off software salaries as R&D spend, something like now companies have to treat that differently for taxes so they now will owe more taxes. Connecting the dots people are concluding that the tax rule change means companies are doing less hiring.
Interest rates are a larger factor in my mind and it takes much longer for increases to them to have an impact on the economy. Its not like the Fed jacks up rates and immediately every loan procured automatically is impacted. Corporate and related loans are probably much longer term, like 5-10 or even 25 years. The economy doesn't move in hot-take twitter time.
I would state that if a tax rule upends your business model, you probably weren't going to be a cash flow positive and profitable business anyways. Companies that keep going after seed rounds with the goal of acquisition or some hockey stick growth dependent on virality statistically don't pan out. And I think pan out is a good word usage here, referencing people panning for gold.
Re: Ask HN: Shift in the job market here to stay?
#19Earlier quoted context omitted.
Can you connect the dots for me back to OP's application response rate? It's not exactly clear how 174 relates specifically to response rate.
It closed a tax rule that allowed companies to write off software salaries as R&D spend, something like now companies have to treat that differently for taxes so they now will owe more taxes. Connecting the dots people are concluding that the tax rule change means companies are doing less hiring. Interest rates are a larger factor in my mind and it takes much longer for increases to them to have an impact on the econ…
If companies are doing less hiring, how does it change response rates?
My naive assumption says that they would post less jobs, sure, but why specifically response rates? I think you're making an argument for "there is change in hiring behaviors," but that's a much weaker argument than "this is how it affects response rates."
Re: Ask HN: Shift in the job market here to stay?
#20There are at least three active threads on this subject right now. I too had 15 years experience with lots of open source history. My solution to this problem was to change career. If you are already vastly superior to your peers in your capabilities and solution delivery then skilling up will only make you more incompatible to the average developer employers expect to hire. There are some hard realities you need to…
10+yoe, thinking about moving on to greener pastures very soon as well. could you share what career you pivoted to?