Tech unemployment in the US drops to lowest level in more than two years

Tech unemployment in the US drops to lowest level in more than two years

Tech hiring rose in December, dropping the IT unemployment rate to 2% — its lowest since November 2023, according to an analysis of the latest jobs data published today by the US Bureau of Labor statistics (BLS). The overall national unemployment rate held steady at 4.1%, according to the BLS.

The tech sector added a net 7,000 jobs, bringing the total core tech workforce to nearly 6.5 million, according to CompTIA, a nonprofit association for the IT industry and workforce. The group found that the unemployment rate last month among tech professionals fell a full half a percent from November.

IT jobs

CompTIA

And as 2025 gets under wa, IT employment and hiring appears to be on a positive track, according to staffing agencies. According to ManpowerGroup, the net employment outlook for Q1 2025 is 2% higher than it was for the same period last year — 37% this year compared to 35% in early 2024.

ManpowerGroup recently published its Q1 2025 report on hiring, which claimed hiring in IT fields will beat all other professions in the US. Still, the firm also predicted employers will pull back on hiring in the months ahead because of “economic uncertainty.”

IT employment

ManpowerGroup

“As we move into 2025, we’re seeing stable year-over-year hiring trends, with employers holding onto the talent they have and planning muted hiring for the quarter ahead,” said Jonas Prising, ManpowerGroup chair and CEO.

Overall, studies by ManpowerGroup, online hiring platform Indeed, and Deloitte Consulting showed that IT hiring will increasingly be based on finding workers with flexible skills that can meet changing demands.

In fact, employment within the tech sector encompassing all types of workers declined by 6,117 jobs in December, according to CompTIA’s data. Positions in PC, semiconductor and components manufacturing accounted for the bulk of those cuts.

The tech sector employs nearly 5.6 million people, which translates to a percentage decline of 1%.

Quarterly IT employment rates

ManpowerGroup

“Employers know a skilled and adaptable workforce is key to navigating transformation, and many are prioritizing hiring and retaining people with in-demand flexible skills that can flex to where demand sits,” Prising said.

Ger Doyle, ManpowerGroup’s US country manager, said the December BLS jobs report delivered “a strong finish to 2024 and is a promising sign of what’s to come in the new year. However, the labor market may still face challenges until inflation is under more control, which is necessary to prevent slower hiring, layoffs, and reduced job growth. Our real-time data shows that open positions have decreased by 8% month-over-month, but increased by 3% year-over-year.”

Overall, job postings have remained steady since November, up 13% year-over-year, reflecting growing demand in digital services, healthcare, and convenience retail, according to ManpowerGroup’s data.

The temp job market was also a bright spot, with open job postings reaching their highest levels since September 2023 and new job postings at their peak since March 2022, according to Doyle. “This surge is driven by an increased demand for IT roles as organizations turn to project work to develop artificial intelligence and machine learning,” Doyle said.

Kye Mitchell, head of Experis North America — a ManpowerGroup tech recruiting business — said demand increased among tech employers in December, particularly related to the “gig economy.” Uber led the surge in such jobs with a remarkable 4,150% increase in job postings, while Outlier Inc., a platform that connects experts to advance generative AI, saw a 342% rise in demand.

“This trend was also evident in the temp job market, where the demand for computer and information research scientists skyrocketed by 2,000% as organizations focused on developing artificial intelligence and machine learning, increasingly relying on temp workers,” Mitchell said.

In December, there were 434,415 active tech job postings, including 165,189 newly added (both down from November). Roles in software development, IT project management, cybersecurity, data science, and tech support saw the most activity, according to CompTIA.

Top hiring companies included Amazon, Accenture, Deloitte, PwC, GovCIO, Robert Half, Lumen Technologies, and Insight Global. Job postings spanned all career levels: 22% required 0-3 years of experience, 28% wanted 4-7 years, and 16% sought 8+ years, CompTIA’s data showed.

Notably, 45% of postings across tech roles didn’t require a four-year degree, according to CompTIA. Network support specialists (85%), tech support specialists (72%), and computer programmers (54%) had the highest percentages of degree-optional roles.

For more historical data, here’s a rundown of tech unemployment data dating back to mid-2020.

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