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Re:Labor market impacts of AI: A new measure and early evidence by yoyohello13 on Friday March 06, 2026 @01:06AM (#47271471)
The companies laying off people have no vision. My company is a successful not for profit and we are hiring like crazy. It’s not a software company, but we have always effectively unlimited work. Why would anyone downsize because work is getting done faster? Just do more work, get more done, get better than the competition, get better at delivering your vision. We put profits back in the community and actually make life better for people. What a crazy fucking concept right?
Re:Labor market impacts of AI: A new measure and early evidence by tkgally on Friday March 06, 2026 @02:51AM (#47272202)
I suspect it depends partly on how locked each individual is into a particular type of work, both skill-wise and temperamentally.

To give an example from a field where LLMs started causing employment worries earlier than software development: translation. Some translators made their living doing the equivalent of routine, repetitive coding tasks: translating patents, manuals, text strings for localized software, etc. Some of that work was already threatened by pre-LLM machine translation, despite its poor quality; context-aware LLMs have pretty much taken over the rest. Translators who were specialized in that type of work and too old or inflexible to move into other areas were hurt badly.

The potential demand for translation between languages has always been immense, and until the past few years only a tiny portion of that demand was being met. Now that translation is practically free, much more of that demand is being met, though not always well. Few people using an app or browser extension to translate between languages have much sense of what makes a good translation or of how translation can go bad. Professional translators who are able to apply their higher-level knowledge and language skills to facilitate intercultural communication in various ways can still make good money. But it requires a mindset change that can be difficult.

Re:Labor market impacts of AI: A new measure and early evidence by adelie on Friday March 06, 2026 @04:11AM (#47272723)
I'm not in translation, but a number of close friends are in the industry. Two trends I've noticed in the industry, which I think we're seeing mirrored in tech:

1. No one cares about quality. Even in fields you'd expect to require the 'human touch' (e.g. novel translation), publishers are replacing translators with AI. It doesn't matter if you have higher-level knowledge or skills if the company gains more from cutting your contract than it loses in sales.

2. Translation jobs have been replaced with jobs proofreading machine translations, which pays peanuts (since AI is 'doing most of the work') but in fact takes almost as much effort as translating from scratch (since AI is often wrong in very subtle ways). The comparison to PR reviews makes itself.

Re:Labor market impacts of AI: A new measure and early evidence by thbb123 on Friday March 06, 2026 @06:35AM (#47273715)
It is not entirely true that no one cares about quality. I'd like to stay optimistic and believe that those who are demanding on the quality of their production will acquire sufficient market differentiation to prevail.

After all, this has been Apple strategy since the 80's, and, even though there were some up's and down's, overall it's a success.

Re:Labor market impacts of AI: A new measure and early evidence by kavalg on Friday March 06, 2026 @09:04AM (#47275038)
someone still will, but quality will become really expensive
Re:Labor market impacts of AI: A new measure and early evidence by palmotea on Friday March 06, 2026 @09:21AM (#47275211)
> It is not entirely true that no one cares about quality. I'd like to stay optimistic and believe that those who are demanding on the quality of their production will acquire sufficient market differentiation to prevail.

Maybe, but it probably requires a very strong and opinionated leader to pull off. The conventional wisdom in American business leadership seems to be to pursue the lowest level of quality you can get away with, and focus on cutting costs. And you'll have to fight that every second.

I don't think that's true at the individual-contributor level (pursing quality is very motivating), but they people who move up are the ones who sound "smart" by aping conventional wisdom.

> After all, this has been Apple strategy since the 80's, and, even though there were some up's and down's, overall it's a success.

I might give you that "since the late 90s," but there have been significant periods where that wasn't true (e.g. the early mid-90s Mac OS was buggy and had poor foundations).

Re:Labor market impacts of AI: A new measure and early evidence by izacus on Friday March 06, 2026 @05:58PM (#47282246)
In other words, AI was used to massively depress wages and lower quality of life of employees while outputting worse results. Which is what is now happening in software.
Re:Labor market impacts of AI: A new measure and early evidence by throw3847r7 on Friday March 06, 2026 @03:14AM (#47272348)
You need certain company culture, to be able to scale up, and to capture this value. Most companies can not just add new developers.

AI needs documentation, automation, integration tests... It works very well for remote first company, but not for in-face informal grinding approach.

Just year ago, client told me to delete integration tests, because "they ran too long"!

Re:Labor market impacts of AI: A new measure and early evidence by joe_mamba on Friday March 06, 2026 @04:29AM (#47272844)
>Just year ago, client told me to delete integration tests, because "they ran too long"!

Why are you surprised customers don't like spending money on the items that don't add business value. Add to that QA, documentation, security audits, etc.

They want to ship stuff that brings in customers and revenue day one, everything else is a cost.

Re:Labor market impacts of AI: A new measure and early evidence by SideburnsOfDoom on Friday March 06, 2026 @08:15AM (#47274546)
[delayed]
Re:Labor market impacts of AI: A new measure and early evidence by joe_mamba on Friday March 06, 2026 @08:49AM (#47274867)
>They absolutely do add value

Not to the non-technical bean counters. When they allocate money they want to see you prove how that extra money translates to an immediate ROI, and it's difficult to prove that in an Excel sheet exactly what the ROI will be without making stuff up on vibes and feels.

Like at one German company i was at ~15 years ago, all the devs wanted a second 19" monitor on our workstations for increased productivity, and the bean counters wouldn't approve that because they wanted proof of how that expense across hundreds of people will increase our productivity and by how much %, to see if that would offset the cost.

This is how these people think. If you don't bring hard numbers on how much their "line will go up", they won't give you money.

I know this is difficult to understand from the PoV of SV Americans where gazillions of dollars just fall from the sky at their tech companies.

Re:Labor market impacts of AI: A new measure and early evidence by afro88 on Friday March 06, 2026 @01:16AM (#47271548)
This is exactly right IMO. I have never worked for a company where the bottleneck was "we've run out of things to do". That said, plenty of companies run out of actual software engineering work when their product isn't competitive. But it usually isn't competitive because they haven't been able to move fast enough
Re:Labor market impacts of AI: A new measure and early evidence by weatherlite on Friday March 06, 2026 @07:26AM (#47274137)
I think it depends on:

A) how old the product is: Twitter during its first 5 years probaby had more work to do compared to Twitter after 15 years. I suspect that is why they were able to get rid of so many developers.

B) The industry: many b2c / ecommerce businesses are straightforward and don't have an endless need for new features. This is different than more deep tech companies

Re:Labor market impacts of AI: A new measure and early evidence by thewebguyd on Friday March 06, 2026 @10:48AM (#47276474)
There’s a third one, and it’s non-tech companies or companies for whom software is not a core product. They only make in-house tooling, ERP extensions, etc. Similar to your Twitter example, once the ERP or whatever is “done” there’s not much more work to do outside of updating for tax & legal changes, or if the business launches new products, opens a new location, etc.

I’ve built several of such tools where I work. We don’t even have a dev team, it’s just IT Ops, and all of what I’ve built is effectively “done” software unless the business changes.

I suspect there’s a lot of that out there in the world.

Re:Labor market impacts of AI: A new measure and early evidence by sdf2df on Friday March 06, 2026 @06:32PM (#47282527)
Not moving fast enough.. sure. But to what direction? The direction and clarity of it is the hardest part.
Re:Labor market impacts of AI: A new measure and early evidence by ehnto on Friday March 06, 2026 @01:34AM (#47271649)
That was my insight also. As a manager, you already have the headcount approved, and your people just allegedly got some significant percentage more productive. The first thought shouldn't be, great let's cut costs, it should be great now we finally have the bandwidth to deliver faster.

On a macro level, if you were in a rising economic tide, you would still be hiring, and turning those productivity gains into more business.

I wonder what the parallels are to past automations. When part producing companies moved from manual mills to CNC mills, did they fire a bunch of people or did they make more parts?

Re:Labor market impacts of AI: A new measure and early evidence by superfrank on Friday March 06, 2026 @03:17AM (#47272363)
I'm an EM as well and I've been telling my teams for a while now that I think they really only need to start worrying once our backlog starts going down instead of up. Generally, I still agree with that (and your) sentiment when you look at the long term, but in the short term, I think all of the following arguments can be made in favor of layoffs:

- AI tools are expensive so until the increased productivity translates to increased revenue we need to make room in the budget

- We expect the bottlenecks in our org to move from writing code to something else (PM or design or something) so we're cutting SWEs in anticipation of needing to move that budget elsewhere.

- We anticipate the skillsets needed by developers in the AI world to be fundamentally different from what they are now that it's cheaper to just lay people off, run as lean as possible, and rehire people with the skills we want in a year or two than it is to try and retrain.

I don't necessarily agree with those arguments (especially the last one), but I think they're somewhat valid arguments

Re:Labor market impacts of AI: A new measure and early evidence by throwaw12 on Friday March 06, 2026 @03:48AM (#47272580)
I see similar arguments and I don't agree as well, here is why:

> rehire people with the skills we want in a year or two than it is to try and retrain.

before that future comes your company might become obsolete already, because you have lost your market share to new entrants

> We expect the bottlenecks in our org to move from writing code to something else

I would love to tell them, hey lets leverage current momentum and build, when those times come, we offer existing people with accumulated knowledge to retrain to a new type of work, if they think they're not good fit, they can leave, if they're willing, give them a chance, invest in people, make them feel safe and earn trust and loyalty from them

> AI tools are expensive so until the increased productivity translates to increased revenue we need to make room in the budget

1. Its not that expensive: 150$/seat/month -> 5 lunches? or maybe squeeze it from Sales personnel traveling with Business class?

2. By the time increased productivity is realized by others, company who resisted could be so far behind, that they won't be able to afford hiring engineers with those skillsets, if they think 150$ is expensive now, I am sure they will say "What??? 350k$ for this engineer?, no way, I will instead hire contractors"

Re:Labor market impacts of AI: A new measure and early evidence by ehnto on Saturday March 07, 2026 @01:03AM (#47284933)
Your last point I think is the crux for now, if you can get so much more value out of talent then the market will eventually price that into wages. I think the idea some have instead is that I can use cheap, unskilled people to get the same value as before, which is probably true for some aspects of the industry. My experience of that so far for boutique software is AI propels unskilled employees at light speed into dead ends, similar to how a junior would spend two weeks following ideas from stack overflow and being unable to execute on it.

However AI definitely is capable of lower end software tasks and really well trodden ground, especially when managed by a developer, so perhaps what we will see is a bigger gap in pay and talent not too different from the off-shore vs on-shore market comparisons.

The key for me though for me is that, if AI makes your employees 20% more valuable, that will either get priced into their wage or captured by the business, but it still doesn't replace the need for good talent (software engineer, agent handler, whatever it will get called).

Re:Labor market impacts of AI: A new measure and early evidence by NathanielK on Friday March 06, 2026 @06:44AM (#47273792)
CNC machines drove down operator wages. Its similar to the translator example where the machine code is written by someone else, but the person running the machine still needs to understand. Simple pushing the go button is dangerous, being able to adapt is critical.

Jobs where a machinist is in charge of large chunks of the process are rarer. Large shop will have one person setting up many machines to maximize throughput.

Re:Labor market impacts of AI: A new measure and early evidence by anthonypasq on Friday March 06, 2026 @11:41AM (#47277325)
business success does not scale at the speed of increased profits from layoffs.
Re:Labor market impacts of AI: A new measure and early evidence by ehnto on Friday March 06, 2026 @11:07PM (#47284386)
It's true but it's also not real growth. It will look good the first time you do it. It also relies on there being no negative growth induced by AI not meeting the same quality of output that thousands of workers were once doing.

If it is truly because of AI, then it's still a losing strategy long term in my opinion.

Re:Labor market impacts of AI: A new measure and early evidence by crocowhile on Friday March 06, 2026 @02:56AM (#47272232)
Because hiring less while getting more done increases margins. Your company is not for profit so doesnt care about margins. Others do.
Re:Labor market impacts of AI: A new measure and early evidence by arwhatever on Friday March 06, 2026 @02:05AM (#47271895)
I’ve been screaming this too https://news.ycombinator.com/item?id=47212237

It’s refreshing to see the same sentiment from so many other people independently here.

Re:Labor market impacts of AI: A new measure and early evidence by threatofrain on Friday March 06, 2026 @01:12AM (#47271516)
These are words without weights. At some point the put money into software option will max out. Perhaps what we should all be doing is hiring more lawyers, there's always more legal work to be done. When you don't have weights then you can reason like this.
Re:Labor market impacts of AI: A new measure and early evidence by yoyohello13 on Friday March 06, 2026 @01:14AM (#47271535)
I don’t know what kind of software your used to but software is pretty much universally dog shit these days. I could probably count on one hand the number of programs that I actually like using. There is an astronomical room for improvement. I don’t think we are hitting diminishing returns any time soon.
Re:Labor market impacts of AI: A new measure and early evidence by laurentiurad on Friday March 06, 2026 @02:24AM (#47272028)
I talk about this at length in one of my previous posts here: https://news.ycombinator.com/item?id=39963058. I definitely share your opinion and I think this will be exacerbated by vibe coding and having LoC as the main KPI for engineering teams.
Re:Labor market impacts of AI: A new measure and early evidence by throwaw12 on Friday March 06, 2026 @01:12AM (#47271518)
> Just do more work, get more done

That's one of the reasons why I am terrified, because it can lead to burn out, and I personally don't like to babysit bunch of agents, because the output doesn't feel "mine", when its not "mine" I don't feel ownership.

And I am deliberately hitting the brake from time to time not to increase expectations, because I feel like driving someone else's car while not understanding fully how they tuned their car (even though I did those tunings by prompting)

Re:Labor market impacts of AI: A new measure and early evidence by ako on Friday March 06, 2026 @03:25AM (#47272411)
I'm currently a product manager (was a software engineer and technical architect before), so i already lost the feeling of ownership of code. But just like when you're doing product management with a team of software engineers, testers, and UXers, with AI you can still feel ownership of the feature or capability you're shipping. So from my perspective, nothing changes regarding ownership.
Re:Labor market impacts of AI: A new measure and early evidence by discreteevent on Friday March 06, 2026 @04:06AM (#47272698)
> So from my perspective, nothing changes regarding ownership.

The engineer who worked with you took ownership of the code! Have you forgotten this?

Re:Labor market impacts of AI: A new measure and early evidence by ako on Friday March 06, 2026 @04:38AM (#47272893)
No, that’s why I wrote “from my perspective”. I started long ago writing 6502 and 68000 assembly, later c and even later Java. Every step you lose ownership of the underlying layer. This is just another step. “But it’s non deterministic!”, yes so are developers. We need QA regardless who or what write the lines of code.
Re:Labor market impacts of AI: A new measure and early evidence by QuercusMax on Friday March 06, 2026 @01:43AM (#47271714)
It feels very much like leading a team of junior engineers or even interns who are very fast but have no idea about why we're doing anything. You have to understand the problems you're trying to solve and describe the solutions in a way they can be implemented.

It's not going to be written exactly like you would do it, but that's ok - because you care about the results of the solution and not its precise implementation. At some point you have to make an engineering decision whether to write it yourself for critical bits or allow the agent/junior to get a good enough result.

You're reviewing the code and hand editing anyway, right? You understand the specs even if your agent/junior doesn't, so you can take credit even if you didn't physically write the code. It's the same thing.

Re:Labor market impacts of AI: A new measure and early evidence by throwaw12 on Friday March 06, 2026 @01:59AM (#47271837)
> It feels very much like leading a team of junior engineers or even interns who are very fast but have no idea about why we're doing anything

Yes, yes!

And this is problem for me, because of the pace, my brain muscles are not developing enough compared to when I was doing those things myself.

before, I was changing my mind while implementing the code, because I see more things while typing, and digging deeper, but now, because juniors are doing things they don't offer me a refactoring or improvements while typing the code quickly, because they obey my command instead of having "aha" moment to suggest better ways

Re:Labor market impacts of AI: A new measure and early evidence by layer8 on Friday March 06, 2026 @06:53AM (#47273860)
There’s some hope that the industry will realize that managing clueless LLMs at high pace isn’t sustainable and leads to worse results, and some middle ground has to be found. Or we will reach AGI, so AI won’t be clueless anymore and really take your engineering job.
Re:Labor market impacts of AI: A new measure and early evidence by MattGaiser on Friday March 06, 2026 @02:46AM (#47272168)
You would need to expand your capacity to find and define the work. I imagine that would be a major challenge.
Re:Labor market impacts of AI: A new measure and early evidence by svara on Friday March 06, 2026 @04:43AM (#47272922)
Yes, it's the lump of labor fallacy.

Doesn't exclude the possibility of short term distribution, though.

Re:Labor market impacts of AI: A new measure and early evidence by zipy124 on Friday March 06, 2026 @04:48AM (#47272950)
The problem becomes if you are a service like Youtube, where you already have capture almost the entire customer base.
Re:Labor market impacts of AI: A new measure and early evidence by RA_Fisher on Friday March 06, 2026 @04:52AM (#47272989)
Does that extra work bring in more revenue? I think that’s the key question.
Re:Labor market impacts of AI: A new measure and early evidence by raphaelj on Friday March 06, 2026 @05:13AM (#47273114)
Companies that do not reduce their workforce might outcompete you.

It might not be about bringing more revenues but retaining market share.

Re:Labor market impacts of AI: A new measure and early evidence by Esophagus4 on Friday March 06, 2026 @08:08AM (#47274503)
If your barrier to being competitive is a slow, bureaucratic org, restructuring and laying off might actually help long term.
Re:Labor market impacts of AI: A new measure and early evidence by apercu on Friday March 06, 2026 @06:45AM (#47273803)
I think a lot of companies have ineffective ways to measure productivity, poor management (e.g., people who were IC's then promoted to management but have no management training or experience), incentives aren't necessarily aligned between orgs and staff, so people end up with a perverse "more headcount" means I'm better than Sandy over there. Leadership and vision have been rare in my professional life (though the corporate-owned media celebrates mediocrity in leadership all the time with puff pieces).

Once you get to a certain size company, this means a lot of bloat. Heck, I've seen small(ish) companies that had as many managers and administrators as ICs.

But You're not wrong, I'm just pointing out how an org that has 4k people can lay off a few hundred with modest impact of the financials (though extensive impact on morale).

Re:Labor market impacts of AI: A new measure and early evidence by anthonypasq on Friday March 06, 2026 @11:40AM (#47277304)
most businesses dont actually have an infinite amount of work that has extremely high ROI. every new project at google for example has to justify the engineering spend of developing a product that has comparable margin to the ad business. Why spend 10 million a year of engineering resources on a new product that might 1. completely fail or 2. be a decent product with 20% margins when they could do nothing and keep raking in 90% margins from the ads business.
Re:Labor market impacts of AI: A new measure and early evidence by sdf2df on Friday March 06, 2026 @06:31PM (#47282515)
Stop talking sense bro, you'll get downvoted.

If you look at my post history I'm essentially saying the same stuff lol.

Re:Labor market impacts of AI: A new measure and early evidence by pllbnk on Sunday March 08, 2026 @05:34PM (#47301744)
I have a hope that many of today's engineers working at various companies will start realizing that instead of employers receiving tools to get them laid off, it is they, the engineers, who received the tools to compete with said employers and outcompete them.

If, and it's a big if, AI models really boost productivity by an order of magnitude (I personally, while being skeptical a year or two ago, am leaning towards this idea) then engineers have a chance to realize their ideas, improve current system design patterns and build successful companies, which will inevitably (hopefully) require hiring personnel to keep competing, bringing entire software engineering market to a newly balanced state.