April jobs data shows tech employment down 11% from November 2022 highs while equities outperform the S&P 500.
Tech stocks are trading at all-time highs relative to the S&P 500, defying a sharp decline in sector employment. The divergence highlights a K-shaped trend within the industry, where capital markets thrive while labor markets contract.
The Bureau of Labor Statistics reported a 13,000-job drop in information sector employment in April, a proxy for tech jobs. Since November 2022, the sector has lost 342,000 positions, an 11% decline. Meanwhile, broader U.S. job growth continued, with 115,000 new roles added last month.
The split reflects investor focus on AI infrastructure and revenue-per-employee metrics, while traditional tech-adjacent roles in software, telecom, and media stagnate. Unemployment held steady at 4.3% in April, masking the sector’s labor weakness.