Despite persistent economic, geopolitical, and technological uncertainties, the U.S. technology labour market continues to demonstrate pockets of resilience and strong employer demand for key roles and competencies, according to the latest Tech Jobs Report from CompTIA.
Subtle Gains amid Shifting Trends
In May 2025, US tech sector employers added a modest 1,571 net new employees. Most of these gains came from growth in cloud infrastructure and tech services, which offset reductions in the telecommunications sector. On a broader scale, however, tech occupation employment across the entire economy fell by an estimated 131,000 roles, possibly an indication of heightened caution as companies navigate uncertainty on multiple fronts.
May 2025’s decline should be viewed with some perspective. Employment gains in prior months mean overall tech occupation employment in the US remains positive for the year. Importantly, the tech sector’s unemployment rate for May stood at 3.4%, almost unchanged from April’s 3.5% and still well below the national average.
“It is undoubtedly a challenging time for employers and job seekers,” said Tim Herbert, chief research officer at CompTIA. “At the same time, it requires taking a measured approach—given the data continues to hold up reasonably well.”
Employer Demand Remains Robust, Especially for Emerging Tech
Employer appetite for tech talent remains clear in job posting activity. Nearly 470,000 tech job postings were active last month, with 208,791 new positions added in May alone. Software developers and engineers, tech support specialists, systems engineers and architects, and cybersecurity engineers all continue to see solid employer demand.
In particular, hiring for artificial intelligence (AI) positions remains a significant bright spot. According to CompTIA’s analysis of Lightcast data, job postings requiring AI skills have soared 117% year-to-date compared to the previous year. This surge highlights the degree to which AI has become a core driver of tech sector growth and innovation.
A Shift Toward Skills-Based Hiring
Notably, employers are increasingly prioritising practical skills and experience over traditional four-year academic degrees. About half of all tech job postings did not specify a bachelor’s degree as a requirement, emphasising instead a mix of relevant work experience, industry training, and professional certifications. This growing focus on skills-based hiring is helping to open doors for a wider and more diverse pool of candidates and reflects the sector’s commitment to adapting in uncertain times.
Industry and Sectoral Drivers of Growth
The finance and insurance industry stood out in May, seeing a 21% jump in new tech job postings, while the retail sector increased its tech hiring by 16%. These trends suggest that as organisations in these industries adapt to digital transformation and evolving market needs, their appetite for technology professionals remains undiminished.
Looking Ahead
While macro-level uncertainties are clearly weighing on both employers and job seekers, the underlying fundamentals of tech hiring continue to show resilience. The ongoing shift toward emerging fields like AI and cloud, together with the rise of skills-based hiring, are re-shaping how and where tech employment grows.
As the market evolves, flexibility in thinking, in training, and in recruiting, will remain the hallmark of companies and candidates best positioned to succeed in the ever-changing landscape of U.S. tech employment.
