ZIRP is over but rates are not especially high and yet I don’t remember job market being that bad. Maybe employers are taking wait and see approach and avoid hiring developers they expect to layoff in a year or two if models will continue to improve and becoming cheaper at the current pace.
replyI think that models will improve and get cheaper. I think we'll see Opus 5.5 tier models open weights in six months.
replyYou are probably right that some companies are factoring AI into headcount but I'd imagine that the interest rate and energy crisis are bigger concerns
Not that it explains all job market weirdness but you do have a problem on the hiring side with having to deal with the flood of AI generated applications. I assume that’s going to have a slowing effect on the typical apply/interview/hire process.
replyInterest rates are higher because AI.
replyIt was long predicted that the sign that AI is here in macroeconomics is rising interest rates, because investors can get MUCH higher rates of return doing AI investments than borrowing governments, why would I lend money to Greece when I can lend it to Anthropic?