New data shows the tech sector suffering more than most

In my small circle of acquaintances, most are tech workers and most are struggling. I’ve heard of taking third world pay rates. With more western workers accepting less, it’s also impacting the outsourcing market. Data showing up today affirms that tech has taken a major hit, not just here but world wide.

Tom Silver, senior vice president of Dice.com, told us this morning that Dice.com is reporting a 44% year-over-year drop in job listings for the month of June. May’s year-over-year decline hovered around 45%. And Silver also points to a rise in the Department of Labor’s unemployment rate for the “Computer and Mathematics sector,” (the area best associated with the tech sector). June’s unemployment rate for the tech sector almost tripled year-over year, from 1.9% in June of 2008, to 5.4% in June of 2009. While Silver says that the tech job market is certainly better than during the fourth quarter of 2008 and the first quarter of 2009, the number of job opportunities have remained stagnant over the course of the past few months. (Tech Crunch)

According to the Times of India, the big outsourcing firms are marking down their bills by 35 to 40 per cent.

Apparently it is now possible to hire an IT specialist in India for about $16 per hour, which analysts say is the lowest rate for human labour since Kunta Kinte was imported into the Southern US to pick cotton.

Siddhartha Pai, MD, at the India offices of TPI told the Times that such rates will continue at least until the first quarter next year. (The Inquirer)

This could mean we’re in for an even bumpier road ahead. It also means what the politicians have been doing isn’t working. Maybe they should stop meddling for a while.