Something that happens when tech bubbles pop
tldr: a lot of people lose their jobs. it takes them a while to find another one because they don’t want to take pay and title cuts.
There’s something called sticky wage theory. Economists who believe in sticky wage theory think that one of the causes is that it’s difficult for workers to accept pay cuts and title demotions, which results in higher unemployment rates dragging on longer than it should.
During times of tech frothiness, this phenomenon becomes magnified because there’s an explosion of startups with a lot of twentysomethings running them. When there’s a correction, lots of these people, who were getting tons of valuable experience in high paying CEO, COO, and VP roles, become unemployed.
Part of the cycle is integrating them back into the workforce. If you’re one of the lucky few, you can find a senior role in some other company or sector. If not, you have to find an Analyst position somewhere, take a pay cut, and do work which makes you feel overqualified. If you imagine that scenario, you can understand how this process would take a long time to play out.