How to Survive (and Thrive) In This TOUGH Developer Economy

Summary

In this video, the speaker addresses the challenging tech job market, with significant layoffs in 2023 and 2024, and offers advice for developers. They emphasize the importance of skill development in a skill-driven economy, recommend revisiting computer science fundamentals, and suggest embracing AI as a tool rather than a threat. The speaker also encourages developers to see themselves as businesses, exploring entrepreneurial opportunities, and to stay positive as the economy will eventually recover.

Takeaways

• 📉 The tech industry is facing tough times with significant layoffs in 2023 and 2024.
• 👨‍💻 Junior developers are particularly affected, having to compete with more experienced developers for limited job opportunities.
• 😌 Despite job cuts, AI is not taking over all tech jobs; instead, it's being used to optimize processes within tech organizations.
• 🛠️ Developers need to focus on mastering their craft and becoming experts in their chosen technology or field.
• 📚 It's crucial to revisit computer science fundamentals and data structures & algorithms (DSA) to remain competitive.
• 🌐 Boot.dev offers a unique, gamified approach to learning back-end web development in Python and Go.
• 🔄 Economic cycles will turn around, and layoffs often precede a hiring boom as seen in historical patterns.
• 🤖 AI is not ready for complex production tasks and is mostly suited for menial jobs that humans dislike.
• 🚀 Embrace AI and see it as an opportunity for new innovations and job creation rather than a threat.
• 💼 Recognize your value as a business and consider creating your own products or services, not just being an employee.

Q & A

What is the current state of the developer economy as described in the video?

The developer economy is tough with significant layoffs in 2023 and 2024, particularly impacting junior developers and those trying to break into the industry.

Why are senior developers seemingly glad about the layoffs of junior developers?

Senior developers may view the layoffs as a 'purging' of less experienced developers, which could potentially reduce competition for job opportunities.

What is the role of AI in the current tech industry?

AI is being utilized to automate routine tasks and optimize processes, but it's not yet ready for complex production work that requires problem-solving and soft skills.

What is the advice given for developers to improve their job prospects?

Developers should focus on perfecting their craft, deepen their expertise in their chosen technology, and revisit computer science fundamentals and DSA concepts.

What is the significance of the first rate cut in 2024 for the tech industry?

The first rate cut in 2024 is a sign that economic conditions may improve, potentially leading to increased hiring and job opportunities in the tech industry.

Why is it important for developers to embrace AI?

Embracing AI can lead to new innovations and job opportunities. Developers should view AI as a tool that can augment their capabilities rather than a replacement.

What is the potential impact of AI on the future of software development jobs?

AI is unlikely to replace software developers due to the complex problem-solving and soft skills required. Instead, it will likely take over menial tasks, freeing up developers for more strategic work.

What is the recommended mindset for developers in the current economic climate?

Developers should adopt a positive outlook, see themselves as businesses, and consider creating their own products or services, rather than solely seeking employment.

How does the video suggest developers can find new opportunities?

Developers can find new opportunities by leveraging their programming skills to create innovative products, services, or content, such as apps, YouTube channels, or consulting.

What is the significance of the 'thousand square grid' example mentioned in the video?

The 'thousand square grid' is an example of creative thinking and opportunity. A developer created a grid on his website, selling each square for $1,000, which leads to the buyer's site or product and provides a backlink.

What is the main takeaway from the video for developers?

The main takeaway is that developers should focus on skill development, be prepared for economic turnarounds, embrace new technologies like AI, and consider themselves as businesses with the potential to create their own opportunities.

Outlines

00:00

💼 Navigating the Developer Economy Amidst Layoffs

The video addresses the challenging job market for developers, particularly for juniors and newcomers, due to significant layoffs in the tech industry in 2023 and 2024. It emphasizes the need for developers to excel in their skills to stand out in a competitive job market where AI is also playing a role. The speaker suggests focusing on becoming highly skilled, revisiting computer science fundamentals, and considering specialization to increase value in the job market. A sponsored mention of 'boot dodev' is made as a resource for learning back-end web development in Python and Go, which is gamified to encourage learning and community engagement.

05:02

🔄 Preparing for the Economic Cycle and Embracing AI

This paragraph discusses the cyclical nature of the tech industry's economy, suggesting that despite current hardships, the market will eventually recover. It points out that AI is not yet capable of replacing human developers but is efficient in menial tasks that people typically dislike. The speaker encourages viewers to see AI as an opportunity rather than a threat and to consider new business models, such as creating SaaS products or consulting services. The video concludes by advising developers to improve their skills, anticipate economic recovery, and consider shifting their mindset from being an employee to a business owner to capitalize on new opportunities.

Keywords

💡Developer Economy

The 'Developer Economy' refers to the current state and trends of the job market and economic conditions for software developers. In the video, it is discussed in the context of layoffs and challenges faced by junior developers, indicating a tough job market. The script mentions almost 300,000 layoffs in Tech in 2023 and around 60,000 in 2024, highlighting the severity of the situation.

💡Junior Developers

Junior developers are entry-level software developers who are new to the industry. The video emphasizes the difficulties junior developers face in a competitive job market, where they must compete against more experienced mid-level and senior developers who are also seeking employment.

💡Skill Economy

A 'Skill Economy' is a job market where the demand is high for individuals with specific, in-demand skills. The video suggests that the current economy favors skilled workers, as employers have a large pool of candidates to choose from and are looking for those who can excel in their specialized fields.

💡AI

AI, or Artificial Intelligence, is a branch of computer science that aims to create intelligent machines capable of performing tasks that typically require human intelligence. The video discusses AI's role in the tech industry, suggesting it is being adopted by organizations to automate tasks and optimize processes, but also notes that AI is not yet capable of replacing the full spectrum of a software developer's role.

💡Certifications

Certifications are formal qualifications that prove a person's proficiency in a particular area. The video encourages developers to pursue advanced certifications in their field, such as CKA or CKS for Kubernetes Administration, to increase their value in the job market.

💡Computer Science Fundamentals

Computer Science Fundamentals are the core principles and concepts that form the basis of computer science, including data structures, algorithms, and software development principles. The video suggests that revisiting these fundamentals can help developers stay relevant and valuable in the industry.

💡Economic Cycle

An 'Economic Cycle' refers to the recurring pattern of economic expansion and contraction. The video discusses the tech industry's economic cycles, suggesting that the current downturn is part of a larger pattern and that an upturn is expected, which will lead to increased hiring.

💡Rate Cut

A 'Rate Cut' refers to a reduction in interest rates by a central bank to stimulate economic growth. The video mentions the first rate cut of the year and anticipates two more, suggesting that this could lead to economic relief and potentially more job opportunities in the tech industry.

💡Recruiting Jobs

Recruiting jobs involve the process of finding, screening, and placing workers in appropriate job positions. The video anticipates an explosion in recruiting jobs as the economy recovers, indicating that this could be a leading indicator of an overall increase in job opportunities.

💡AI Solutions

AI Solutions are applications or systems that utilize artificial intelligence to solve problems or perform tasks. The video discusses the potential of AI to take over menial tasks but also emphasizes that AI is not yet capable of replacing the complex problem-solving and soft skills required by software developers.

💡Business Value

Business value refers to the positive impact or benefits that a product, service, or individual brings to a company. The video encourages developers to see themselves as businesses, creating software for customers, and to explore opportunities beyond traditional employment, such as creating SaaS products or consulting services.

Highlights

The current developer economy is facing challenges with significant layoffs in 2023 and 2024.

Junior developers are facing intense competition from mid-senior developers also seeking work.

Some senior developers on Reddit are glad about the 'purging' of newbies and boot campers.

AI is not taking jobs but is being adopted by tech organizations to optimize processes.

Developers need to think rationally about the current landscape and how to gain an edge.

The importance of being good at what you do, as the economy favors employers with many skilled workers to choose from.

Developers should focus on perfecting their craft and obtaining advanced skills in their specialty.

The suggestion to revisit computer science fundamentals and DSA concepts.

Boot.dev is recommended as a resource for learning back-end web development.

The economy is expected to turn around with rate cuts, potentially leading to more job opportunities.

AI is not yet ready for production and is mainly used for menial tasks that people dislike.

Software development roles are secure as AI cannot cover the full spectrum of the job.

Developers should embrace AI and see it as an opportunity for new innovations and jobs.

Developers should not sell themselves short and consider themselves as businesses creating value.

The economy will eventually turn around, and developers should be prepared with their skills.

Developers should consider changing their thinking from employees to business owners.

The internet offers a world of opportunities for developers with programming skills.

An example of a developer creating a business by renting out squares on his website.

Transcripts

in today's video I want to try to help

you think rationally about the current

developer economy we're in we all know

times are tough right now we've had

almost 300,000 layoffs in Tech in 2023

and we're currently at around 60,000

layoffs for this year of 2024 and it's

even worse for the junior developers and

those trying to break into the industry

you guys have to directly compete

against the mids and seniors also

looking for work and if you take a look

at Reddit many of these seniors are

actually glad about this purging of

newbies and boot campers and the

cleansing of imposters remember that guy

so what do we do do we give up is it

time to switch professions is it all

over oh wait there's also ai ai isn't

taking our jobs but it sure is a

steaming slice of apple pie for pretty

much every Tech organization looking to

free up meal work or to optimize any

process AI plays well with but again

what do we do here well first we need to

think reasonably about it all that's

what I want to do in this video let's

think about the landscape we're in what

do we know we need to be doing and what

can we add to this to give us an edge

and how can we mute out all the extreme

wh ifs here are four things number one

you need to actually make sure you're

good at what you do the days of check

out my skill of building landing pages

is over AI does that in fact it can do

it from a sketch my 8-year-old can draw

up in 5 minutes this economy it's a

skill economy not a demand economy lots

of supply low demand employers they have

the advantage there's a large pool to

choose from they want skilled workers so

you need to be spending your time

perfecting your craft if this whole

thing has made you sick of coding and

you want to do something else go for it

if not then you need to keep leaning in

and this doesn't mean you can't be a

great generalist but whatever your

specialty is or whatever job you're

trying to land or shift into you need to

be sure you can really nail down that

technology this means if you primarily

work around react you should be now

consuming the advanced react books if

you're primarily working around

kubernetes Administration you should now

be getting the cka or the cks

certifications this deeper Pursuit will

make you more valuable in this economy

and when things pick back up you'll be

the expert in that economy in addition

Now's the Time to revisit Those computer

science fundamentals and DSA Concepts

that carry over to literally everything

you do or will be doing even in an AI

future if it's your first time doing so

start with the grocking algorithms book

and work through it it's a great start

if you're looking to level up your

backend skills I have a great resource

for you today in this quick word from

our sponsor boot. boot dodev is an

online resource for learning back-end

web development from start to finish in

the python and go programming languages

which are two of the best to learn today

in my opinion and it's far from boring

as they've created it to literally feel

like a role playing game or RPG with XP

that you can earn levels achievements

and quests that you have to complete to

get a top spot on their Global

leaderboard in addition the platform is

designed to get you to write a ton of

code because that in shipping products

is the only way to really learn

programming I think we'd all agree there

I think we'd all also agree that the

other key to success is community boot.

has a very active Discord community of

students to lend you a hand should you

ever get stuck and while it's much much

cheaper than any boot camp out there

they realize that some people can't

afford a membership and have made it so

all content is free to watch and read in

guest mode and then with the paid

membership that unlocks all the Hands-On

coding AI assistance progress tracking

and gamification that makes the content

so immersive so click the link down in

the description box and use my code here

on the screen to get 25% off your first

month or even your entire year if you

choose the annual plan now back to the

video number two this economy will turn

around we just had our first rate cut

our first rate cut and there are two

more expected by the end of the year now

there are no immediate results expected

here in fact historically it's sometimes

been the case that interest rates are

cut because because it expects economic

conditions to worsen but in general

there will be some relief in this

pressure that's been balled up in our

economy and businesses will feel at

Liberty to begin spending again or

borrowing they'll be looking to tap into

more customer money to grow and growth

takes more work or workers I came across

this tweet the other day by a Jesse

Tinsley here's what it says first it's

layoffs we've already been through that

second unemployment Rises leading to

rate Cuts this happened today so this is

like a week ago when we had our first

rate cut third recruiting jobs explode

in volume next year given some time for

inflation to cool this could easily

happen fourth after recruiters get hired

everyone else does too and then fifth

multi-year hiring Sprint it's at this

point that you would feel pretty stupid

having given up on Tech in addition you

would feel pretty stupid to not be

completely on top of your game

skill-wise when this does happen that's

why it's a good time now to get really

good at what you do no more faking it

this cycle repeats every 5 to 10 years

we were in step two and now entering a

new chapter with step three better

buckle up and strap in 2025 the year of

the recruiter remember this isn't the

first time the tech industry has had a

hard time it's a cycle it just may be

your first cycle so I think this is a

good tweet though I may be a bit more

pessimistic on the word explode but

whatever but here's the question related

to this in the other one everyone is

mulling over will these new workers

needed by companies be in the form of

humans us or AI Solutions if the economy

does turn around and hiring picks back

up will they need us or will they need

the AI Solutions I think that's the big

concern that many people have and the

answer is we don't know but what we do

know again we need to think reasonably

along the lines of what we can control

what we do know is that one AI is not

ready for anything production yet number

two AI is largely there for menial jobs

that people hate to work anyway like

support data entry translation retail

checkouts again jobs that people hate to

to do anyway and number three AI can

compute well and crunch the numbers

better than us but they can't cover the

entire spectrum of what we would call a

software developer this role requires

problem solving soft skills careful and

precise solutions that can't be the

product of a potential hallucination

there's management of servers

infrastructure and all things in between

this is why software development it

Administration engineering whatever you

do is not going anywhere anytime soon

what AI can do well is a small fraction

of the value that you bring and at the

same time those building landing pages

those who are HTML and CSS experts or

those who aren't willing to put in the

extra work needed to be in this field

are the very ones that the AI menial

task monster is coming for number three

try to embrace or at least adopt a

positive outlook to a future with AI in

it I just don't see this thing slowing

down and if it doesn't slow down then

we're actually at a pretty big turning

point in history meaning we should not

only see AI scooping up the jobs of Bank

in taking the orders at Wendy's but we

should at the same time be seeing new

Innovations arising out of it creating a

host of New Opportunities and jobs that

will of course require the programming

problem solving and technical skills of

software Engineers because everything is

software now remember when Tesla had a

recall and they fixed it by raising

their suspension of hair and they did so

by pushing out an update to everyone's

Teslas you didn't have to return

anything or visit any vehicle shop it's

all software don't be an AI kogin learn

about it read the book The Business case

for AI and see how businesses are

successfully using it in their everyday

tasks and number four don't sell

yourself short when it comes to your own

business value I've said repeatedly you

are the business you are in the business

of creating software for customers your

current job can be seen as your main

customer they're hiring you to do some

sort of work that you're very good at

don't stop there though what else could

you do create a SAS product and run your

own business start a Consulting gig

offer AI training or AI Consulting to

companies out there developers being out

of work has created developers who take

matters into their own hands we see so

many examples out there of folks

building apps and creating businesses

out of them or starting YouTube channels

or partnering with small threers

startups on some new Innovative idea all

this is to say things are changing don't

be this kudin who rejects all things new

and thinks things will continue in your

favor we have to work with the things we

know and we know this first take time to

practice the craft get good be valuable

grow your soft skills second realize

that the economy will turn around it has

to it just takes time and then third

because it takes time you may as well

Embrace this new future seize the

opportunity and change your thinking

from an employee to a business owner you

are the business the internet is a world

of opportunity good luck actually no

let's do a PS I got a lot of push back

on my past videos when I've tried to

advocate for all the endless

possibilities out there and and it's

mainly because people think opportunity

equals opportunity to be someone's

employee this is so narrow when you get

out of this narrow thinking and you see

the worldwide web of opportunity and

pair that with your skill of programming

the doors are much wider one example

I'll leave you with he created a

thousand square grid on his site and is

renting out each Square for $1,000 you

pay a th000 and you get a square and

that square leads people to your site or

your product it also produces a good

backlink sounds crazy but it's genius

and he's had a handful of sponsors buy

up spots already with more to come I'm

sure that's opportunity you need to find

yours if you found this video helpful

give it a thumbs up if you haven't

subscribed to the channel consider doing

so and I'll see you in the next video

[Music]