Dot-com bubble 2.0?

AI bubble alerts, tech shakeups, and bold moves for your next career leap

Author

Stephanie Sakoda
March 27, 2025

In partnership with

👋 Welcome, Jobseekers

Welcome to Offboard—your weekly shot of adrenaline in this wild job market. In this issue, we're unpacking some big questions: Are we heading into a Dot-Com Bubble 2.0, or is this AI boom built to last? Massive layoffs at Block, IBM, and others have shaken the industry, but that just means more opportunities for savvy professionals like you. Dive into sharp insights, actionable tips, and cutting-edge tools that'll help you pivot like a pro, navigate uncertainty with swagger, and turn disruption into your secret weapon.

  • 📉 Layoff Report: Jack Dorsey’s Block to lay off nearly 1,000 workers in another reorganization

  • 📈 Trends & Data: Job Applications Surge Amid Federal Downsizing

  • 🤖 AI Prompt of the Week: Unlock Your Career Pivot

  • 🧑‍✈️ Career CoPilot: Are We In a Dot-Com Bubble 2.0?

  • ⚡️ Quick Hits: The Trump/Signal debacle, Starlink competitor

  • 🔧 Jobseeker Tools: WorkSaga, MindMap AI, Mentor

Jack Dorsey’s Block to lay off nearly 1,000 workers in another reorganization 

Source: TrueUp

Federal Workforce Exodus: Job Applications Surge Amid Government Downsizing

“The exodus of skilled federal employees could lead to a talent influx in the private sector, potentially intensifying competition for positions in specialized fields.”

Overview

Federal employees are actively seeking new job opportunities in response to the Trump Administration's initiatives to reduce the size of the federal government.​

The Details

  • Job applications from federal workers have surged, particularly from agencies under the Department of Government Efficiency's (DOGE) review.

  • This trend involves highly educated and specialized employees, indicating a significant shift in the federal workforce landscape.​

  • The increase in job-seeking activity among federal workers comes at a time when growth in job openings remains subdued, especially for knowledge-based roles.​

Why it Matters

The exodus of skilled federal employees could lead to a talent influx in the private sector, potentially intensifying competition for positions in specialized fields. For job seekers in the tech industry, this means staying agile and proactive in their job search strategies is more crucial than ever. Networking, continuous skill development, and leveraging platforms that connect talent with opportunities will be key to navigating this evolving employment landscape.

Unlock Your Career Pivot: Tailoring Your Experience for a New Industry

Are you looking to pivot careers and step into a new industry? Use this AI prompt to translate your existing skills and experience into a compelling narrative that speaks directly to recruiters in your desired field.

Prompt: 

Help me reframe my professional background in [your current industry/job role] to highlight transferable skills relevant to a career in [your target industry/job role]. Emphasize skills like [specific transferable skills] and include examples such as [notable projects or experiences].

Example:

"I'm currently a project manager in the hospitality industry aiming to transition into tech product management. My core skills include cross-functional team leadership, agile project execution, and customer experience optimization. Recently, I spearheaded the implementation of a digital booking platform at our hotel chain, increasing online reservations by 40%. I'd like to showcase these transferable experiences as I seek product management roles within innovative tech companies."

How to use this:

  • Replace placeholders in brackets with your current and target career specifics.

  • Copy the personalized prompt and input it into your favorite AI tool, such as ChatGPT.

  • Refine the AI-generated response to align seamlessly with your unique career story.

Make your career pivot smoother by effectively communicating your transferable strengths!

Are We In a Dot-Com Bubble 2.0?

“AI-driven investment is soaring, reminiscent of the dot-com excitement, but economists worry about an "AI bubble" if investor expectations are not met.”

Overview:

America's current job market mirrors the conditions of the late 1990s dot-com boom, raising concerns about a potential repeat of history as we approach the 25th anniversary of the bubble's burst.

The Details:

  • Today's job market resembles the late '90s, featuring robust wage growth, low unemployment, and surging demand for technology, particularly artificial intelligence.

  • In February 2025, the U.S. economy added 151,000 jobs, showing steady but slightly below expected job growth.

  • Concerns grow as geopolitical tensions, particularly the ongoing trade war and fallout from Russia’s invasion of Ukraine, add uncertainty to global markets.

  • AI-driven investment is soaring, reminiscent of the dot-com excitement, but economists worry about an "AI bubble" if investor expectations are not met.

  • Despite positive signs like high prime-age labor participation, hiring has slowed significantly from recent peak levels, and many employers still struggle to fill highly skilled positions.

Why it Matters:

This historical parallel signals both opportunity and caution for tech professionals. The flourishing AI sector offers lucrative career paths, but job seekers should be vigilant about potential market instability. Building adaptable skills and maintaining financial preparedness could prove vital as the job market navigates uncertain economic waters.

Signals I Should Look For:

  • Investment Trends: Monitor venture capital investment shifts—particularly sharp declines in AI funding—which can indicate reduced confidence and foreshadow broader market contractions.

  • Job Posting Data: Watch closely for decreases in tech job postings or sudden increases in hiring freezes within tech companies as early indicators of industry slowdown.

  • Interest Rate Changes: Keep an eye on Federal Reserve announcements, especially sudden increases in interest rates, as higher borrowing costs can rapidly cool off investment and hiring.

  • Corporate Earnings Reports: Track quarterly earnings of leading tech firms. Significant misses or cautious forward guidance can signal weakening sector health.

  • Consumer Confidence Surveys: Drops in consumer confidence levels, often published by sources like the Conference Board, can predict hiring slowdowns as businesses adjust to reduced demand.

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WorkSaga

Unlock your career potential with digital journaling. Turn your daily work into Promotions, Jobs, and Growth

MindMap AI

AI Mind Maps Spark Your Creativity. AI instantly creates mind maps from various input formats. Copilot Chat guides brainstorming with smart suggestion. Seamlessly edit AI-generated maps for perfect results

Mentor

Give your goals a head start. Break down your goals and tasks, stay accountable, and make progress with mentor AI

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