> This is how things started in 2007, anecdotally. The ladder got pulled up earlier in the year, and then right around the holiday season everything fell apart. It took a good 2-3 years for everything to recover, but in that time salaries were down roughly 20-30%.
Yes. It really sucks for new graduates and entry-level because all of a sudden you are competing with people with years of experience for the same salary and position.
Also importantly, the consequences of graduating into a recession can be quite lasting. Based on research going into the last recession ('08), it takes up to 10 for the effects to disappear[1]. And if your base case is the last couple of years in software - well it seems likely that was a huge bubble that won't be replicated any time soon.
I wasn't entry-level at the time but I was somewhat shifting roles when dot-com deflated. I was fortunately able to land a new and, in many ways better, position quickly but compensation definitely took a hit over the next number of years. Everything worked out in the end as it ended up being the on-ramp for a good position (and another role change). But it wouldn't have been an ideal situation for at least some.
Yes. It really sucks for new graduates and entry-level because all of a sudden you are competing with people with years of experience for the same salary and position.
Also importantly, the consequences of graduating into a recession can be quite lasting. Based on research going into the last recession ('08), it takes up to 10 for the effects to disappear[1]. And if your base case is the last couple of years in software - well it seems likely that was a huge bubble that won't be replicated any time soon.
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[1] https://www.nber.org/digest/nov06/career-effects-graduating-...