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November 2002, Week 4

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From:
Jerry Leslie <[log in to unmask]>
Reply To:
Jerry Leslie <[log in to unmask]>
Date:
Sat, 23 Nov 2002 19:16:48 -0600
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 Wirt Atmar ([log in to unmask]) wrote:
: Stan writes:
:
: > That's why we need more programmers in Washington, and more lawyers
: > unemployed.
:
: Well, we're not likely to get them. In 2000, the latest data that I have
: available, at the doctorate level (although I personally don't equate
: a Juris Doctoris with a Ph.D.; a JD to me is more akin to an extended
: Master's), the United States graduated:
:
:      o 40,000 JD's
:
: and
:
:      o 857 Ph.D.'s in computer science, half of which were non-residents.
:
: Now while not everyone needs a Ph.D. in computer science, this can't be
: good for the long-term future of the country. Worse yet, the fastest
: growing college major in the United States is Parks, Recreation and
: Leisure and in 1997, with this major out-enrolling electrical engineering
: for the first time, with the gap growing increasingly larger each year
: since.
:

It's little wonder that students are switching from non-technical majors:

   http://www.usatoday.com/tech/news/2002-10-08-computer-science-majors_x.htm
   USATODAY.com - Computer majors down amid tech bust

  "SAN FRANCISCO -- The tech bust is hurting the popularity of computer
   majors in U.S. colleges, and that could eventually cause worker
   shortages in a highly competitive global industry.

   U.S. colleges say the decline in enrollments in computer science and
   engineering classes started last year and hastened this fall..."

which is understandble with stories like these...

   http://www.siliconvalley.com/mld/siliconvalley/4332783.htm
   Mercury News | 10/21/2002 | Slowdown sending tech jobs overseas

  "The U.S. economy might be stalling, but at least one niche is hot:
   shipping technology jobs offshore.

   The economic slowdown is speeding up the export of jobs, experts say.
   As executives face smaller budgets and more pressure for profits, they
   find it much cheaper to send work to contractors overseas. More U.S.
   companies are following Silicon Valley's lead by shifting engineering
   and other technology-related jobs to places such as China, Ireland,
   India and the Philippines to cut costs.

   The drift of jobs is worrying engineering groups, renewing fears that
   white-collar tech jobs in the United States are going the way of
   blue-collar manufacturing jobs: over the border and across the seas.

   [snip]

   Labor experts say no one knows how many engineering jobs the United
   States has lost because of the recent uptick in offshore outsourcing..."

That's not a surprise, since there is no government agency mandated to
track offshore job relocations and their impact on tax revenues.

Here's some more news:

   http://www.internetnews.com/bus-news/article.php/1503461
   Nearly 1 Million IT Jobs Moving Offshore

   http://www.zdnetindia.com/news/national/stories/70849.html
   US to move 3.3 Million jobs offshore by 2015: Forrester

  "Altogether 3.3 million US jobs in the services sector and $136 billion
   in wages are expected to move offshore to countries like India,
   Russia, China and the Philippines by 2015 according to a recent report
   of research and consulting firm Forrester Research.

   The report adds that the IT industry will lead the initial overseas
   exodus..."

Intel's doing their share of offshore job relocations:

   http://portland.bizjournals.com/portland/stories/2002/08/26/daily56.html
   Intel holds job fairs for 'redeployed' employees, while hiring overseas

   Intel Corp., Oregon's largest technology employer, is proceeding with
   previously announced job cuts, while hiring software engineers for its
   development center in India..."

Contrast that story with the following one...

   http://www.fortune.com/articles/209973.html
   FORTUNE.COM - Fast Forward - Will the U.S. Fall Behind in Tech?

  "At last week's Agenda technology conference, many in the audience
   pricked up their ears when Pat Gelsinger, Intel's chief technology
   officer and head of research, began passionately complaining on stage
   about U.S. technology competitiveness. "Perhaps the current downsizing
   of the U.S. IT industry is not a temporary thing," Gelsinger said.
   "Maybe we are headed for becoming a second-class citizen in the world
   of IT." He mentioned China and India among countries he said were more
   committed to IT as a national priority than is the U.S.

   It was shocking enough to many in the audience, including me, to hear
   Gelsinger's worries. But that night at a reception I found myself
   standing with both him and Craig Mundie, chief technical officer and
   strategist for Microsoft. I asked Mundie if he shared Gelsinger's
   fears, expecting a tepid endorsement or a mere statement of respectful
   disagreement. Instead, I got full-bore enthusiastic, even insistent,
   agreement. "If the U.S. cedes its leadership in IT there will not be a
   second chance," opined Mundie, with Gelsinger nodding approvingly..."

It sounds like Intel & Microsoft are declaring their intent to make
the U.S. a second-class citizen in the IT world.

:
: There's going to be an awful lot of people asking here soon, "Do you
: want fries with that?"
:

That's already the mantra of many of the high-tech unemployed...

   http://itmanagement.earthweb.com/career/article.php/1495251
   Harsh Fall: High-Tech Layoffs Soar In October

  "Dramatic layoffs in the high-tech sector helped push the total of U.S.
   job cuts last month to heights reminiscent of the economic fall in
   2001.

   After falling to a 22-month low in September, job cuts announced by
   U.S. companies in October jumped to 176,010 -- 151% higher than
   September's 70,057, according to figures released by Challenger, Gray
   & Christmas, Inc., which tracks job cuts daily. While September's
   numbers were the lowest monthly total since September 2000, October's
   rate is equal to 7,600 job cuts per business day.

   "When we hit the 22-month low in September, it looked like layoffs
   were finally becoming manageable, but this has thwarted that thought,"
   says John Challenger, CEO of Challenger, Gray & Christmas. "The fact
   that we've returned to levels we were seeing in 2001 is a real cause
   for concern."

   Challenger says the telecommunications and computer industries laid
   off more workers last month than any other sector, combining for
   51,644 job cuts. Another 7,942 layoffs were announced by e-commerce
   and electronics companies..."

This will help McDonald's employment picture:

   http://www.eetimes.com/story/OEG20021118S0023
   EE Times - H-1Bs now can stay longer

  "QUAN_MARGARET Sometimes it seems like lawmakers have their heads in
   the sand. Do they grasp what's happening in the high-tech job market?
   Have they seen the reports about rising unemployment among EEs or
   noticed the jobless rate of 7.9 percent in Silicon Valley during the
   month of October?

   I ask because a Justice Department Appropriations Authorization bill
   signed by President Bush on Nov. 2 has a provision that could affect
   the job picture for engineers. A section of that legislation extends
   the current six-year term for H-1B visa holders, who now essentially
   may stay in the United States indefinitely until they receive a green
   card, as long as they remain employed..."

   http://www.usvisanews.com/memo1910.html
   Jose Latour's Port of Entry --
   HR-2215 And What It Means For Our H-1B Clients -- [ U.S. Visa News ]

  "You probably haven't heard about this because it has not exactly been
   the hot topic of choice on the major media, but on November 2, 2002,
   President Bush signed into law the "21st Century Department of Justice
   Appropriations Authorization Act." Today and tomorrow I'm going to
   tell you guys about the most important two aspects of this law..."

Perhaps the author of "The Government Has Decided to Sacrifice UK
Software Industry", Gerry McLaughlin, is correct:


   Has UK software industry been 'sacrificed'? Pt.1
   http://www.contractoruk.co.uk/news040702.html

   http://www.contractoruk.co.uk/news080702.html
   Has UK software industry been 'sacrificed'? Pt.2

   http://www.contractoruk.co.uk/news100702.html
   Has UK software industry been 'sacrificed'? Pt.3

  "...It's just that a worldwide decision was taken some time ago,
   in collusion with the western world's major businesses, that
   their software industries were to be sacrificed to the developing
   countries, in order to retain competitive advantage in our core
   added-value businesses, which would remain off-limit to the developing
   world. It was a pure 'bean count' decision and we were the losers..."


--Jerry Leslie   (my opinions are strictly my own)
  Note: [log in to unmask] is invalid for email

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