Now it’s the turn of the science and technology sector in the domain of the United States of America and as indicated by latest studies ongoing recession has not exempted it too resulting into the increase of layoffs. The studies also state that almost all U.S. technology firms are suffering from this malady although the industry is putting up with less than other economic sectors yet.

Take for instance the recently published report of Challenger Gray & Christmas Inc., a Chicago-based outplacement firm. According to the firm’s discretion, the rate of job cuts in the U.S. technology sector rose 27 percent in the first quarter of 2009 when compared with the previous quarter,. When compared with the number of cuts in the first three months of 2008, they were nearly five times higher. Speaking on this, Peter Lindstrom, Vice President of Public Affairs at the Minnesota High Tech Association (MHTA) stated, “High tech isn’t immune from the economic downturn.’’ “But the rate of job losses in the tech sector is far less than the general private sector.’’

Whatever it is, this has been quite unexpected since the high tech industry has added practically 383,000 jobs in the United States during the past four years. Nobody may believe but it’s a reality that even in 2008 the sector was able to add jobs during the first three quarters. As stated by MHTA President Kate Rubin in a recent statement, at only half of the rate of the private sector the jobs were lost in the succeeding fourth quarter. “This gives us confidence in tech’s ability to regain its strength and continue its growth after the recession,’’ Rubin said.

The pertinent industry seems to be confident of betterment during the next 10 years but, if we confide in the Challenger report, the problems will continue due to the existent slump. The report states, “We may start to see an increase in merger activity among tech firms, as they attempt to gain an economic and competitive foothold in this downturn. Most recently, IBM and Sun Microsystems have initiated talks over a possible corporate marriage.”

“In most of these mergers, the first step taken to offset the cost of the merger is to eliminate redundant positions.’’ “For large entities like IBM and Sun, this could mean thousands of workers,” Challenger mentioned as well.