Business of Tech: Daily 10-Minute IT Services Insights US GDP Steady, Intel's Historic Loss, CompTIA's For-Profit Shift & Tech Hiring Trends
The latest economic indicators highlight a steady U.S. GDP growth rate of 2.8% for the third quarter of 2024. This growth is supported by a notable increase in consumer spending, which rose at a 3.7% annualized rate. However, the job market shows signs of stagnation, with only 12,000 new jobs added in October, raising concerns about underlying weaknesses. Despite the unemployment rate remaining steady at 4.1%, the episode emphasizes the challenges faced by small businesses in filling job vacancies, particularly in sectors like construction and transportation.
Host Dave Sobel also delves into the tech employment landscape, noting that while the tech unemployment rate held steady at 2.6%, the sector experienced a slight decline in jobs. The report from CompTIA indicates a positive trend in job listings for tech positions, but the overall employment numbers reflect a tightening labor market. The episode highlights the struggles small businesses face in hiring qualified candidates, with many owners reporting unfilled job openings and a decrease in hiring efforts.
The episode shifts focus to Intel, which has reported a staggering $16.6 billion loss for the third quarter, marking the largest quarterly loss in its history. This loss is attributed to significant asset depreciation and restructuring charges following substantial layoffs. Sobel discusses the competitive landscape, particularly the challenges Intel faces from rivals like Nvidia and AMD in the AI chip market. In contrast, Reddit has reported its first profitable quarter as a public company, showcasing a significant turnaround and strong investor confidence.
Finally, the episode covers the acquisition of CompTIA's certification business by HIG Capital and Thoma Bravo, transitioning it to a for-profit model. This move raises questions about the future of CompTIA's mission to serve the IT industry and the implications for its existing non-profit organization. Sobel encourages listeners to reevaluate their relationships with CompTIA in light of these changes, emphasizing the evolving landscape of certification and training in the tech industry.
Three things to know today
07:10 H.I.G. Capital and Thoma Bravo to Acquire CompTIA’s Certification Business, Transitioning to For-Profit Model
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