As we head into the Labor Day holiday weekend, the state of labor in the tech sector has not been this shaky in a long time. Layoffs continue to loom large, macroeconomic headwinds rattle confidence, sovereignty issues complicate global talent flows—and, of course, the specter of AI replacing human roles haunts many of us who’ve spent our careers in tech.
A Brief History of Labor Day and the Labor Movement
Labor Day wasn’t invented for retail sales or long weekends—it’s rooted in a bold, historic fight for worker rights. In the late 19th century, American laborers endured 12- to 16-hour days, dangerous factory conditions, and no safety nets. After relentless organizing, strikes, and tragedies like the Pullman and Haymarket incidents, Labor Day emerged in 1894 as a national acknowledgment of the labor force’s vital role.
It reminds us that improved working conditions and fair pay are not just economic issues—they’re moral and societal foundations. As we reflect on that history, it’s impossible not to compare it to the upheaval and uncertainty facing today’s workforce, especially in technology.
The State of Tech Labor Today
I know many of you reading this are being impacted—or know others who have been impacted—by layoffs and changes in our market. To deny it is happening flies in the face of the facts.
The numbers are striking. According to Layoffs.fyi, over 80,250 tech employees have been laid off in 2025 so far, compared with 152,922 in all of 2024. Another tracker reports 136,720 people impacted by 484 layoffs this year.
Meanwhile, demand for tech jobs is cooling. Software engineering postings dropped from around 170,000 in March to under 150,000 by July. AI-related job posts plunged from 80,000 in February to just over 50,000 by June, with only a modest rebound in July.
Entry-level workers are taking the biggest hit. A Stanford study analyzing ADP data shows employment for 22–25-year-olds in AI-exposed fields (like software development and customer support) has dropped by 13% since late 2022. Axios reports similar findings—a 16% employment decline in those roles.
Yet it’s not all doom. A global report projects a +21% net hiring effect from AI adoption in 2025—and +23% in 2026. And according to Deloitte, 69% of tech leaders plan to expand their teams thanks to generative AI integration.
The AI Era & Career Prospects
“AI won’t replace you—someone who uses AI better than you will.”
In plain terms, AI may handle 40–60% of mundane tasks, but it can’t yet handle the higher-level reasoning, emotional nuance, strategic thinking, and creativity that make us indispensable.
Even Amazon Web Services CEO Matt Garman has pushed back, calling the idea of replacing junior employees with AI “the dumbest thing I’ve ever heard,” because entry-level staff learn by engaging with AI tools—and that engagement builds future human leadership.
AI doesn’t destroy value—it reshapes it. PwC reports that wages are rising twice as fast in AI-exposed industries compared to others. Still, it lacks one crucial ingredient: human creative spark—the kind that generated Labor Day in the first place. AI might automate the work, but it can’t originate the vision.
So here’s to the creators, the spark-bringers, the human essence—that AI can’t replicate.
Shimmy’s Labor Day Advice
Don’t fear the unknown (it’s natural, I know)—embrace it. Use this time to learn, grow, explore. We’re sailing into uncharted waters. Maybe we’ll pull into a harbor where AI makes work more engaging, rewarding, and yes—fun. That future is ours to shape.
For digital leaders: guide your teams to see AI as a powerful ally, not a threat. Equip them, encourage curiosity, reward adaptation. The future belongs to those who lean in.
Happy Labor Day, everyone. Let’s honor the legacy of the labor movement—and chart a better future in the AI era.
