Despite surging inflation and fears of a slowdown in growth, the U.S. economy added more jobs than expected last month amid an increasingly tight labor market. But in contrast to this, the tech sector, which thrived during the pandemic, is showing signs of contraction. Several tech companies have recently announced hiring freezes and layoffs as a part of cost-cutting measures due to factors analysts believe are unique to the sector.
Although the overall job market remains resilient and seems to be on track for a return to pre-pandemic levels, it “is showing some signs of cooling as it turns the corner and the recovery enters a new phase,” said Daniel Zhao, senior economist at jobs review site Glassdoor.
