Technology changes and the job market
Yesterday a friend called me and asked: “For years, you have written that there is a shortage of technology skilled people but Microsoft just announced that they are reducing 18,000 jobs, HP also announces 16,000 job cuts, Intel also reduces over 6000 workers and many technology companies are planning layoffs soon. Can you explain it? I am worry because my son is studying Computer Science, we do not know what it means and what the future will be.”
I told him: "According to industry report, there have been over 50,000 layoffs in technology industry this year and it will continue as companies are getting rid of unproductive workers. The problem is caused by technology changes and people who cannot change with that. Today companies need workers with new skills, NOT yesterday skills. Currently Personal Computer (PC) technology is being replaced by mobility technology, so if your skills are related to Microsoft's “Window XP” technology then they are obsolete but if your skills are in mobile IOS and Android then you should not worry. This change begins in the U.S now but will have significant impact in other countries soon and there will be more people losing jobs.”
He was shock: “What will happen to people who are still in college studying Computer Science like my son?”
I explained: “You should not have to worry for your son. Young people today have grown up with technology and they have more advantage in the competition for jobs. If you walk into technology companies such as Apple, Google, Facebook, Amazon or LinkedIn you will see many managers in the thirties, and developers in their twenties. You will not see many people in the forties or older because these young workers can get a lot of responsibilities and high salaries. But if you go to older technology companies such as Microsoft, Intel, IBM, HP, or Cisco you may see more people in the forties or older and some are being lay-offs. Few months ago, there was an industry survey that found people who are in the forties and fifties are losing jobs NOT because of their age but because their skills are obsoleted and they are no longer productive. To older people, this rapidly changing job market is the source for fears but for younger people, it is a source for opportunity. Today the change is mostly happening in management levels where companies are getting rid of managers who are no longer effective, who cannot change with technology and “Flatting-out” the company structure for efficiency. The old style of bureaucracy is gone. People who sit behind their desks and give orders are gone. People who spend most of their time going to meeting after meeting will be eliminated. With information technology, companies do not need these “old styled” managers as many things are being automated and controlled by computers.”
He was not comfortable: “But what will happen when my son graduates, will he have job?”
I explained: “You should not worry; I am sure that when graduate he will have several job offers because there is a high demand for people with current skills. What he learns in school now is what the industry needs. Today technology companies are getting rid of people with obsolete skills, people who graduate twenty or thirty years ago but do not keep their skills up to date, people who move into management position then became unproductive. If you look at the industry today, it is clear that the high demand skills are in mobility, cloud computing, security and Big data. People who graduated twenty or thirty years ago were trained in PC technologies which are no longer needed. Not long ago, Microsoft, Dell, HP, Intel, Sony were top companies but today Google, Apple, Facebook, Samsung, LG are the new leaders. Dell is moving into Cloud Computing; HP is moving into service business; Sony shut down their PC Vaio and stops building PCs; IBM already did it many years ago. Other companies who are depending on PC technology like Cisco, EMC, Juniper are suffering too and people who work in PC related technologies are losing jobs.”
“What we are seeing today is the result of technology changes and its impact. With globalization, competition is fierce among companies. Business also changes too as you cannot stand still but must expand quickly into other areas BEFORE your competitors. Thirty years ago, Microsoft is the top company but today it is trying to catch up with others. Why do you think Google is quickly moving into mobility, robotics and even self-driven cars? Why Apple is using iPods to capture the music market or iPads to capture the e-book business? Why Amazon is expanding its online of selling books and CDs into selling everything and moving into cloud computing business? All of these changes are creating a huge demand for highly skilled workers. Basically people who have these high demand skills are rewarded with a lot of money. More than half of the richest people on earth come from information technology areas; many of them are still very young. In this fast changing time, knowledge and skills are everything, if you have them you should not have to worry. That is why I always emphasize that to succeed in the 21st century; people must develop the lifelong learning attitude to keep their skills up to date.”
“Today many companies are declining and lay off workers but others are thriving, growing, and hiring. Apple, Samsung, LG, Google, Amazon, Facebook, Twitter, and LinkedIn are all leaders but in the future, when technology changes I am sure there will be many new companies too. If your son understand this and develops the needed skills in high demand areas such as mobility, cloud computing, security and big data then he will do very well.”
He asked: “But I do not know what he is studying in school beside Computer Science?”
I told him: “Then you should ask him, your son should know about this because that is his career and his future. He has selected the right field of study but he also needs to focus on the right areas of expertise to make sure that when graduate in the next few years, he has all the skills that industry needs.”
Sources
- Blogs of Prof. John Vu, Carnegie Mellon University
