> Near zero interest rates + COVID remote work + PPP loans = Booming economy
One more factor to add to the equation...when everyone went remote during COVID, all brick-and-mortar businesses had to quickly move to conducting their businesses online driving demand for SWEs.
Company wanting to hire essentially has two options: (1) hire from the pool of fresh candidates coming out of the Universities, (2) hire people who are already employed.
This means that to inflate the numbers of software engineers on the market you also have only two options: (1) have the Universities start to somehow exponentially produce the number of software engineers which the market could not amortize, (2) let go a substantial number of software engineers who now (in between 2020-2025) all of the sudden cannot find a new job anymore
(1) is a non-sense and for (2) to take place market needs to stagnate, which is what is happening. Reasons are manyfold.
What is happening now is the unwinding of the above. Now its:
Higher rates + AI + too many SWEs (bootcamps and over-hiring) = Busting economy
I think what we are in right now is more the norm and the post covid boom was an exception.