The U.S. tech industry is navigating a turbulent job market, with recent data pointing to continued headwinds. According to a CompTIA analysis, the unemployment rate for tech roles has been steadily climbing since May, reaching 4 percent in November. Between October and November alone, the number of tech workers across industries fell by 134,000, while jobs within the tech sector itself dropped by more than 6,800. Meanwhile, tech job postings declined by over 31,800, based on data from the Bureau of Labor Statistics and market intelligence firm Lightcast.
Mark Zandi, chief economist at Moody’s, summed it up bluntly: “The data is pretty definitive that the tech industry is struggling. There’s a jobs recession in the industry, and it feels like that’s going to continue given the slide in postings.”
Over the past year, tech has been reshaping itself amid economic uncertainty, major investments in artificial intelligence (AI), and a drive toward greater cost efficiency. Major players like Amazon, Meta, and Microsoft have cut thousands of jobs even as they continue to post soaring revenue and invest heavily in AI. Economists warn that the new data signals challenges ahead, even as some companies actively hire for AI-related roles.
“For the longest time, tech was the tailwind to jobs and the broader job market,” Zandi said. “That tailwind has now turned into a headwind, and it may just blow harder going forward.”
The U.S. economic outlook remains uncertain. The Federal Reserve recently cut interest rates for the third time this year, citing a softening labor market. While tech unemployment remains below the national rate—which hit 4.6 percent in November—it is rising faster than overall unemployment, narrowing the gap.
Which Jobs Are Being Affected?
According to CompTIA, software, cybersecurity, and web development consulting roles have been among the hardest hit. Companies are spending less on tech projects, and reductions in government contracts and overseas business are contributing to the slowdown. Tim Herbert, CompTIA’s chief research officer, explains that tech consulting can act as a bellwether for broader economic trends: “When companies stop hiring tech consulting services, it can signal how other industries are performing.”
Many employers are adopting a cautious, “wait-and-see” approach, delaying new hires amid economic uncertainty and the evolving impact of AI. Justin Wolfers, a professor of public policy and economics at the University of Michigan, notes that this uncertainty is likely to persist.
Big Tech Cuts While Investing in AI
So far this year, technology companies have announced over 141,000 job cuts—a 17 percent increase from last year, according to outplacement firm Challenger, Gray & Christmas. At the same time, major tech firms plan to invest up to $375 billion in AI infrastructure this year.
Despite the drop in job postings, hiring continues in certain areas, particularly engineering and tech support. AI expertise is becoming increasingly essential, with 41 percent of active job postings now requiring AI skills, according to CompTIA. Zandi puts it starkly: “If you have AI skills, there seem to be jobs. But if you don’t, it’s going to feel like you’ve been hit by a dump truck.”
Looking Ahead
Experts caution that a single month’s data may not tell the full story. Monitoring trends over the coming months will be critical in understanding the tech labor market’s trajectory. AI’s impact will vary across roles, with coders and translators potentially feeling pressure sooner than other professions, Wolfers notes.
For tech workers and job seekers, the message is clear: AI skills are increasingly a ticket to opportunity, while broader industry uncertainty may continue to reshape the employment landscape.