Tech job losses are accelerating at rates not seen since the dot-com bust, with February's data showing 92,000 jobs lost across the broader economy. Economist Joseph Politano told Business Insider that tech employment has been declining for three straight years, now outpacing even the 2008 recession and 2020 pandemic downturn. The sector typically adds 100,000 to 300,000 jobs annually, making this sustained contraction unprecedented.

Recent layoffs at Block, which cut nearly half its workforce, highlight how AI is reshaping the industry. CEO Jack Dorsey cited AI tools as enabling "smaller and flatter teams" working in new ways. While AI firms are hiring, they're bringing on far fewer employees than traditional tech giants. New college graduates who pursued STEM degrees are especially vulnerable, facing a job market that's been shrinking since 2022.

The timing and nature of these losses suggest AI is at least partially responsible, though quantifying the exact impact remains difficult. Computer system design jobs are among the hardest hit, and the trend shows no signs of reversing. With three years of continuous decline and no evidence of recovery, the tech sector appears trapped in a prolonged downturn that could reshape employment patterns for years to come.