Web design is absolutely not dying, but the bottom end has fallen out. Cloud-based platforms and themed solutions are providing better quality, design and baseline functionality than a low-to-mid level web designer can provide on a custom basis... and for much less.
Very talented designers at the high end are busier than ever, because there is a ton of demand from companies who want and need to stand out from a sea of canned websites. Also, complex websites still require a hands-on approach to work properly and adhere to industry-specific best practices. WordPress may have a million plugins, but when you use a million plugins in combination you get a mess of broken spaghetti that is a hacker target waiting to happen.
For anyone who is at the bottom or middle of the web design profession, or struggling to keep up with the ever-increasing pace of how technology is evolving, my recommendation is to pursue one of two directions:
1) If you want to remain a generalist, then become an expert in a platform like Squarespace, Wordpress etc. and offer service, convenience and management support so clients contemplating a self-serve approach can instead focus on their day jobs and rely on you to handle the website.
2) Otherwise, find a niche speciality inside the trade to focus on exclusively and just push
that skillset to the limit... be a jquery gui, photoshop wizard, etc.
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