How Tech Layoffs Affect BLS Wage Data

Between 2022 and 2024, the technology industry announced hundreds of thousands of layoffs — from major companies including Meta, Google, Amazon, and Microsoft. The media coverage was dramatic, but the impact on BLS OEWS wage data requires some interpretation.

BLS Data Is a Snapshot of Employed Workers

OEWS surveys wages of currently employed workers — not laid-off workers. Layoffs themselves don't directly reduce median wages in BLS data; they reduce employment counts. Wages in OEWS reflect what companies are currently paying workers in filled positions.

Supply and Demand Effects

Large-scale layoffs increase the supply of available workers, which puts downward pressure on wages for new hires — particularly at entry and mid levels. This effect shows up gradually in BLS data as the median for an occupation drifts down over successive annual surveys. The effect is most visible at the 25th percentile, where new-hire rates concentrate.

Senior Workers and Wage Stickiness

Senior employees who keep their jobs maintain (or continue growing) their wages — contributing to wage stickiness at the median even when new-hire rates fall. This means median wages for software developers may remain elevated in BLS data even after a period of significant layoffs.

Interpreting Tech Wages Today

Browse current software developer wages and computer occupation wages to see the most recent BLS data for the tech sector.