The once-booming tech market has been unstable since the COVID-19 pandemic and subsequent layoffs at big tech giants like Amazon, Meta and Microsoft. With the rapid growth of AI and automation, it’s no surprise that the technology job market has been disrupted in recent years.
As technology advances and companies try to keep pace amid constant change, the question arises: Will the uncertainties of the technology job market, including slowing job growth, continued layoffs, and skills shortages, continue into 2026?
Here are some statistics that shed light on the technology talent market in 2025.
1. U.S. technology jobs are expected to grow at twice the rate of the overall workforce over the next decade
According to the Computing Technology Industry Association (CompTIA)’s 2025 “State of the Tech Workforce” report, technology jobs in the United States are expected to grow much faster than average. The report predicts that technology jobs will grow from 6.09 million in 2025 to 7.03 million in 2035. This includes:
- Data scientists and data analysts grew by 414%.
- Cybersecurity analysts and engineers grew by 367%.
- Software developers and engineers grew by 297%.
- The number of software QA and testers increased by 220%.
Computer and IT occupations are expected to grow much faster than average from 2024 to 2034, with 317,700 job openings expected annually, according to a November 2025 study from the Bureau of Labor Statistics (BLS).
However, Indeed reports that tech jobs have been in sharp decline over the past few years, with the 2025 Tech Talent Report showing that tech job openings in the U.S. fell by 36% from February 2020 to July 2025.
2. By 2026, more than 90% of organizations worldwide will be affected by IT skills shortages
According to an IDC survey of North American IT leaders, by 2026, the IT skills shortage will be a critical issue for most organizations around the world, resulting in $5.5 trillion in losses.
The IT skills shortage may already have begun. AI and other technologies are no longer a pressing issue and continue to advance faster than employees and organizations can respond. Staffing firm Robert Half reported that 87% of technology leaders surveyed currently have difficulty finding skilled workers.
3. Skill-based recruitment for remote technical positions is increasing
The number of HR leaders more likely to make skill-first hires that focus on education beyond certifications and degrees has tripled in just two years, according to the General Assembly’s State of Tech Talent 2025 report. 18% of HR professionals are increasingly hiring skills-first for remote roles in software engineering, data analytics, data science, and UX design.
A skills-first strategy can help close the ever-widening skills gap. According to the General Assembly report, 95% of respondents said it is more difficult to find candidates with the technical and soft skills needed to succeed than it was three years ago.
A recent survey from Indeed echoed similar sentiments, with 45% of managers reporting a lack of skilled applicants as their main hiring challenge.
In addition to skills-first hiring, organizations continue to prioritize upskilling, reskilling, and cross-skilling to close skills gaps. After all, technology skills have a short half-life of 2.5 years, according to Harvard Business Review.
4. AI/ML engineers and data engineers are among the most in-demand tech jobs
According to Robert Half’s 2025 In-Demand Technology Roles and Employment Trends report, AI analysts, DevOps engineers, data analysts, and cloud engineers are among the top 15% of in-demand roles.
The report also identified the most in-demand technical skills, including data science, IT operations, and cybersecurity. Robert Half’s 2026 Salary Guide study also found that companies are willing to pay more for in-demand skills such as cybersecurity, data analysis, and software development.
5. The estimated median wage for engineers in the United States is $112,667.
CompTIA’s State of the Tech Workforce 2025 report found that the median wage for technology workers in the United States is 127% higher than the national median wage. Salaries for technical jobs ranged from about $50,000 at the 10th percentile to about $200,000 at the 90th percentile.
The BLS reports that the median annual wage for computer and IT occupations in 2024 was $105,990. According to the BLS, computer IT managers and computer hardware engineers had the highest average salaries, with average salaries of $169,510 and $155,020, respectively, followed by computer and information research scientists, computer network architects, and computer programmers.
6. AI technical skills are in demand now more than ever, filling 78% of ICT roles
According to the Cisco-led AI Workforce Consortium’s 2025 report, AI skills are more pervasive in tech jobs than ever before, with 78% of information and communications technology (ICT) jobs containing AI technical skills. According to the report, 7 out of 10 fastest growing ICT roles are AI-related, including:
- AI/ML engineer.
- AI Risk and Governance Specialist.
- NLP engineer.
According to the report, demand for skills in AI governance has increased by 150%, demand for AI ethics skills has increased by 125%, and critical skills gaps have been identified in areas such as generative AI, large-scale language models, and prompted engineering.
Indeed’s Hiring Lab reports that the number of generative AI jobs increased by 170% from January 2024 to January 2025, but still represents a relatively small portion of total job openings. Roles that mentioned generative AI included machine learning engineers and data scientists, as well as management consulting roles.
7. Generative AI will have a bigger impact on technology jobs than other fields
Indeed Hiring Lab’s AI At Work Report 2025 finds that the rise of generative AI will have an even bigger impact on the technology sector.
In this report, we analyzed nearly 3,000 skills to find out how deeply they change with the introduction of generative AI. According to the report, 54% of skills are likely to undergo deeper transformation, the majority of which are technology-related. Additionally, technology skills account for 57% of the fully transformable skills identified by Indeed.
8. More than 178,000 tech workers will be laid off by 2025
The layoffs that have been rampant in the tech industry since the pandemic have not stopped. TrueUp’s layoff tracker reported more than 600 tech layoffs in 2025, affecting approximately 600 people per day. An estimated 211,000 technology employees are expected to be affected by layoffs by the end of the year.
According to the 2025 General Assembly Report, 54% of recruiters at technology companies say they are likely to implement layoffs this year, and many believe AI is to blame. 45% of recruiters said roles that are replaced by AI are most at risk of being eliminated, and 44% said employees with outdated skill sets are most likely to be fired.
According to Indeed’s 2025 Tech Talent Report, IT employees are also feeling the effects of layoffs, with 31% reporting concerns about being laid off and 41% saying they would be more likely to look for a new role if their company suffered a layoff that didn’t affect them.
9. New graduates are facing rising unemployment rates.
According to Encoura research, recent college graduates in computer engineering and computer science have similar unemployment rates as art college graduates compared to the overall average.
Recent computer engineering graduates have an unemployment rate of 7.5% and computer science graduates have an unemployment rate of 6.1%, compared to an overall unemployment rate of 3.6%.
Why is it important for business owners?
Since 2020, the employment situation in the tech industry has become volatile and unpredictable. Between the technology boom of 2020, the rapid adoption of AI, and rampant restructuring across the technology industry, organizations have had to deal with a number of changes that impact hiring.
Business leaders need to stay informed about the technology job market in order to make the most informed strategic decisions for their organizations. Understanding current trends and future market predictions helps leaders develop critical strategies such as succession planning, leadership pipelines, and skill development.
For example, if hiring activity is slow, CIOs may prioritize upskilling or reskilling over external hires, which could impact budgets and business strategies for 2026.
Alison Lawler is a freelance writer with experience in technology, human resources, and marketing.
