New ask Hacker News story: Ask HN: How do the recent tech layoffs affect salaries in the job market?

Ask HN: How do the recent tech layoffs affect salaries in the job market?
2 by dm03514 | 1 comments on Hacker News.
I'm a complete economics n00b. I'm wondering if the flood of layoffs is enough to drive salaries down? Assuming the number of engineers is constant between pre covid and current, is the influx of talent back to the market enough to drive salaries down? If engineers are constant and opportunities are constant? What are some strategies for reasoning about this using sound economic principles? Taking a stab at it, based on really nothing. If the number of candidates and opportunities are constant, than the market could absorb everyone fine, but I don't think this is the case. I believe that covid created more opportunities, so more opportunities and same amount of workers created a scarcity of workers driving salaries up. With the recession opportunities are shrinking, but workers are staying constant, trigger a return back to pre-covid salaries?? Anecdotally, I saw an increase ~25% pre covid to peak covid for my market and role!! It's hard to imagine that this is still the case with the current influx? WDYT? Thank you!

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