The technology sector has finally begun to show signs of weakness as more and more technology companies announce layoffs and downsizing. Fortunately, this round of economic turmoil is not expected to have the same impact that the 2001-2002 crisis did, when technology was both at the center of the downfall, and responsible for the mess. While the housing and mortgage meltdown are to blame this time, technology firms are still preparing for tough times ahead, with many firms expecting to cut their workforces further in 2009. In the mean time, Silicon Valley's unemployment rate has already seen an increase to 6.9% in October.
See "RPT-Silicon Valley starts to feel the sting of layoffs", Gabriel Madway, Reuters, November 25, 2008