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Main article: US economy
Salaries in the IT sector
Main article: Salaries in the United States
2024: Personnel disaster in the American IT market: Programmers cannot find work
At the end of June 2024, a report by the ADP Research Institute was published, according to which the employment of software developers in the American market began to decline, which made it more difficult for even experienced specialists to find a well-paid job.
The IT jobs market has begun to narrow since the beginning of 2023 after an incredibly rapid expansion after the pandemic. Rising interest rates, the end of the pandemic era and a slowdown in the economy as a whole were the main reasons for the decline in demand for IT workers. At the same time, employment in the technology sector fell by only 2% from the peak recorded in December 2022 and is still 21% higher than in March 2020.
Nick Bunker, director of economic research in North America at job search firm Indeed Hiring Lab, noted that demand for software development is unlikely to return to levels seen in 2021-2022 any time soon. Still, the demand for these jobs is strong enough, and the activity is still well paid, Bunker said. The average annual salary for software developers is $132,270, according to the Bureau of Labor Statistics.
 | Reducing demand for software development specialists can be part of a large cycle or just a short-term phenomenon, says Bunker. |  |
In addition, the decline may be associated with a huge number of new specialists who entered the labor market, attracted by the high wages that employers offered to beginners. However, the number of new developer/software engineer jobs on the Handshake network fell by 29% in 2024 compared to the previous year, and now it is not so easy for young IT professionals to find a well-paid job immediately after university.[1]
2023
IT companies fled massively from Silicon Valley to Austin, and now they are fleeing from there
In early December 2023, it became known that IT companies that moved from Silicon Valley to Austin (the capital of Texas) were leaving this city. It turned out to be not as attractive for business development as many startups assumed . Read more here.
Alphabet and Meta dominate US internet
Each visit to the Internet is associated with many factors. One random access to the network requires access to the device, operating system, and probably some combination of a web browser, search engine, and special. applications.
Much of this digital infrastructure in the U.S. is owned and operated by very few companies. Apple dominates the mobile market, and Alphabet has more than 50% share of the browser and search market, as well as two of the most visited websites in the world. In the United States, Meta Platforms controls all three of the most popular social networks.
US IT spending on software reaches lowest since early 2020
In the second quarter of 2023, the costs of American IT companies for software decreased to the lowest value since the beginning of 2020. Such data are provided in a report by technology procurement service Vendr, which was published on July 18, 2023.
The researchers analyzed transactions from approximately 1000 software manufacturers, including Snowflake, Microsoft and Zoom Video Communications. Costs were estimated for more than two dozen types of corporate products - from cybersecurity tools to accounting services and cloud computing. As it turned out, in the second quarter of 2023, the cost of contracts for the supply of software averaged $62,000. This is 51% less compared to the indicator for the same period in 2022 and 45% less compared to the first quarter of 2023.
A significant reduction in demand was recorded in product categories such as customer relationship management (CRM), accounting and finance, and IT service management. This is due to global macroeconomic difficulties and staff reductions in many large corporations. In addition, there is an increase in software prices, and manufacturers are offering discounts to customers less and less.
Analysts believe that the software market will stimulate new applications and services based on. In the artificial intelligence corporate AI segment, they are leading,, and Google Microsoft. Salesforce Their Adobe B2B products (SaaS software as a service) come with deeply integrated AI tools, which provides customers with a number of benefits when implementing complex projects. In general, the SaaS segment continues to actively develop on a global scale against the background of digital transformation of enterprises.[2]
2022
The US presidential administration has developed six provisions for reforming the IT industry
The presidential administration USA on Sept. 9, 2022, released six regulation-industry reform provisions IT that cover areas such as privacy, algorithm decision-making and market competition.
The proposals were released after a White House session to discuss the technology industry. The session was attended by more than a dozen experts and practitioners.
The first of six proposals released by the White House aims to boost competition in the tech sector.
{{quote 'A small number of dominant Internet platforms are using their power to exclude new participants from the market, obtain favorable terms and collect personal information, the proposal says. To rectify the situation, the White House calls for the introduction of new rules that can provide small and medium-sized businesses and entrepreneurs with the opportunity to compete on equal terms. }} The second proposal deals with privacy. The administration said there needed to be clear limits on companies' ability to collect, use, transfer and store Americans' personal data. The proposal highlights the need for tighter regulation of targeted advertising.
A third policy proposal focuses on protecting the privacy of children. The proposal says tech giants should be required to apply standards and practices to ensure targeted advertising and data collection are safely and limited when developed across all online platforms, products and services.
The fourth proposal is to remove the special legal protections that big tech companies have under Section 230 of the Communications Decency Rules Act.
The fifth proposal is to provide greater transparency that large IT companies provide regarding their algorithms and content moderation solutions. According to the White House, operators of online platforms must provide sufficient transparency so that the public and researchers can understand how and why certain decisions are made and their potential consequences for users.
The sixth policy proposal is designed to stop discriminatory algorithmic decision-making.
{{quote 'We need robust protections to ensure that algorithms do not discriminate against socially vulnerable groups, for example, by not providing equal access to various key opportunities, putting vulnerable communities at risk or carrying out constant surveillance, the White House[3] }}
Biden allocated $10 billion to create 20 new "Silicon Valleys" in the United States
In August 2022, it became known that as part of the adopted law on subsidies for the semiconductor industry in the United States (CHIPS and Science Act), the American authorities will create 20 new Silicon Valleys for the country. $10 billion is allocated for this. The document was signed by US President Joe Biden.
In a commentary to Federal Computer Week, Mark Muro, a senior researcher at Brookings Metro Research Program at the Brookings Institution, drew attention to the fact that the "chip law" is aimed not only at supporting existing semiconductor hubs, but also at developing similar centers in other parts of the United States, including small cities and rural areas.
The lion's share ($39.4 billion) of the $54.2 billion funding planned by the "chip law" will subsidize efforts aimed at strengthening the US position in the semiconductor sector. In particular, it is planned to stimulate companies to establish chip production within the country.
According to Muro, even more important is that the law provides for the allocation of $10 billion in the next five years for the development of 20 regional technological and innovation centers, and they should not be in places "that are now leading technological centers."
The US Department of Commerce is mandated to "provide geographic and demographic diversity" by creating at least three centers in each of the six regional branches of the US Economic Development Administration.
At least a third of these centers will have to "significantly benefit small and rural settlements, which the law defines as agglomerations with a population of no more than 250 thousand people." In addition, at least one of the 20 centers should be located in a state with a low level of population that does not have an urbanized territory with a population of 250 thousand or more.
These requirements should reverse the current trend in the United States in the concentration of innovation-based jobs in only a few areas of the country, Muro explained.[4]
US, Israel strike strategic IT partnership
In mid-July 2022, US President Biden and Israeli Prime Minister Yair Lapid signed a document that concluded a strategic partnership between the countries in the IT sphere. Its goal is to establish an American-Israeli technological partnership in critical and new technologies and solutions to global problems: pandemic preparedness, climate change, the introduction of artificial intelligence and trusted technological ecosystems.
The US statement clarifies that meetings within the framework of the strategic partnership will be held annually under the leadership of national security advisers. The first of them is scheduled for autumn 2022, during which they will discuss the implementation of specific projects in various areas of cooperation.
The United States and Israel commit to developing mutual innovative ecosystems, deepening bilateral engagement, promoting and protecting critical and new technologies in accordance with the national interests of both states, democratic principles and human rights, and addressing geostrategic challenges around the world.
The two states will conduct an active study of joint technological research enterprises, including technologies for surveillance and early warning of diseases, as well as for a rapid response to medical countermeasures. Developing and addressing important challenges such as large-scale planning, implementation and logistical challenges through multidimensional optimization through advanced AI in transport, medicine and agriculture, and for risk management and privacy enhancing technologies. Joint research enterprises or the introduction of technologies that contribute to a fair solution to climate change, for example, water reuse, solid waste disposal, clean and renewable energy. Exchange of information between states and the desire to increase the coordination of risk management policies in innovative ecosystems, including research security, investment verification and export controls, and investment and technology protection strategies for critical and developing technologies.
The United States and Israel reaffirm their commitment to expanding cooperation in other areas and starting an exchange program in the field of quantum informatics so that both states can jointly solve strategic technological tasks and achieve common goals to the mutual benefit of both countries, the White House said in a statement.[5]
2019
Investment in software is ahead of investment in industrial equipment
Restricting the export of software with artificial intelligence
In early January 2020, it became known that the United States is introducing new restrictions on the export of software with artificial intelligence. It is assumed that in this way the government is trying to limit the transfer of critical technologies to competing powers, for example, to China.
The ban operates as part of an export control reform law passed in 2018. Many representatives of technology companies feared that this law would seriously harm AI-based research and development, which is actively developing in cooperation with other countries. However, so far the ban applies only to software with a graphical interface, which uses neural networks to detect "significant points" in geospatial images, that is, houses or vehicles.
Thus, American companies that export software working with satellite photographs must apply for a license to supply to other countries. The ban does not apply only to Canada.
According to Reuters, software of this type is used by many customers. For example, environmentalists can use it to monitor forest fires, and financial analysts can use it to track cargo ships. However, this software can also be used by drones and satellites to automate the process of determining targets, that is, it concerns US state security.
Experts suggest that industry representatives will take the news with relief, because they feared a more serious and large-scale ban. However, earlier the United States introduced other trade restrictions that affected AI-based developments. Thus, American firms are prohibited from doing business with Chinese companies that produce AI-based software for various surveillance systems.[6]
Notes
- ↑ Bad news for coders: The US is past peak software developer
- ↑ The Q2 SaaS Trends Report: How companies are doing more with less
- ↑ said. White House releases six proposals for reforming tech industry regulation
- ↑ New semiconductor law aims to create ‘Silicon Valleys’ across U.S.
- ↑ Joint U.S.-Israel Statement on Launching Strategic High-Level Dialogue on Technology
- ↑ US announces AI software export restrictions
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