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2025 tech job market statistics and outlook

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2025 tech job market statistics and outlook

Once booming, the tech market has been unsteady since the COVID-19 pandemic and subsequent layoffs at major tech giants, such as Amazon, Microsoft and Meta. Add in the exponential growth of AI and automation, and it’s no surprise the tech job market has been roiled over the past few years.

As technology advances and companies attempt to keep pace amid constant volatility, it begs the question: Will the uncertainty of the tech job market — slow job growth, continuous layoffs and skill shortages — continue into 2025?

Here are some statistics that clarify the tech job market in 2025.

1. Tech jobs in the U.S. are projected to grow at twice the rate of the overall workforce in the next decade

Tech jobs in the U.S. are projected to grow much faster than average, according to the Computing Technology Industry Association’s (CompTIA) 2024 “State of the Tech Workforce” report. The report projected tech job growth from 6 million in 2024 to 7.1 million in 2034.

According to research from the Bureau of Labor Statistics, computer and IT occupations are expected to grow much faster than average from 2023 to 2033, with a projected 356,700 job openings annually.

2. More than 90% of organizations worldwide will be affected by the IT skills shortage by 2026

By 2026, the IT skills shortage will become a significant problem for most organizations globally, resulting in $5.5 trillion in losses, according to an IDC survey of North American IT leaders. Organizational consulting firm Korn Ferry predicted the skills shortage might leave as many as 85 million unfilled tech-related jobs by 2030.

The IT skills shortage may already be here. No longer a looming issue, AI and other technologies continue to advance faster than workers and organizations can react. Staffing firm Robert Half reported that 95% of tech leaders who responded to its survey currently face challenges finding skilled workers.

3. 48% of tech organizations are prioritizing upskilling and cross-skilling over new hires

The Linux Foundation reported that a growing number of organizations, in response to technological advances and a tough labor market, are investing internally to close skill gaps rather than hiring new talent or consultants.

Organizations continue to prioritize upskilling, reskilling and cross-skilling to meet their needs. After all, the half-life of technology skills is as short as 2.5 years, according to Harvard Business Review. The World Economic Forum, back in October 2020, noted that more than half of workers require skilling of some type by 2025 due to rapid technology advancements.

4. Python is the most in-demand programming language

According to Indeed’s “Tapping Into Today’s Tech Talent” report from October 2024, Python is the most in-demand skill in job listings, followed by experience with AWS, which enjoyed the largest growth in demand in the last year, as well as Oracle, Java and JavaScript.

PyTorch, Rust, TensorFlow, Flutter and Dart were listed as other fast-growing areas. Xamarin, Erlang, Azure and iOS faced the biggest declines in demand, according to the report, with Erlang among the list of dying programming languages.

5. The worldwide average salary for IT professionals is $88,448

Skillsoft’s “2024-25 IT Skills and Salary Report” stated the average worldwide salary for IT professionals has increased nearly 5% since last year. North America recorded the highest average salary of $113,211 in comparison to three other regions: Latin America; Europe, the Middle East and Africa, or EMEA; and Asia-Pacific.

C-level IT executives earned the highest salaries, according to the report, followed by IT architecture and design, and then cloud computing. In North America, the highest salaries are in the IT software sector. Meanwhile, IT professionals in the education sector reported the lowest average salary.

6. LinkedIn job listings referencing AI have more than doubled worldwide from 2021 to 2023

LinkedIn’s November 2023 “Future of Work Report: AI at Work” highlighted the ever-increasing demand for AI skills as organizations integrate AI into their business practices. Other hiring platforms concur. Indeed’s Hiring Lab reported a 30-fold increase in generative AI-related jobs from January 2023 to February 2024, though they still make up a relatively small part of total jobs.

That is changing as organizations focus on AI skills entering 2025. A ResumeTemplates.com survey found that 87% of leaders who plan to hire list AI experience as valuable for job seekers. Plus, AI skills benefit current employees. For example, in its 2025 salary guide, Robert Half reported that 44% of organizations boost pay for workers with AI and machine learning skills.

7. Nontech industries hired more tech talent workers than the tech industry in 2023

CBRE, a commercial real estate services and investment firm, found tech industry hiring is slowing. Nontech industries hire more tech talent than tech industries, a first in the CBRE “Scoring Tech Talent” report‘s 11-year history.

While the tech industry added nearly 29,000 tech talent jobs in 2023, the report noted professional and business services, excluding tech, netted almost 50,000 jobs, followed by roughly 45,000 in the transportation, warehousing and wholesale sectors.

8. More than 225,000 tech employees have been laid off in 2024

Layoffs, rampant in the tech industry since the pandemic, aren’t stopping. TrueUp’s layoff tracker reported more than 1,000 rounds of layoffs in 2024, affecting nearly 700 people per day.

Continuous layoffs parallel an uptick in unemployment for tech workers. According to CompTIA’s “Tech Jobs Report”, in June 2024, unemployment for IT professionals reached 3.7%, the highest mark since August 2020.

9. 56% of tech managers are loosening experience requirements to speed the hiring process

To combat hiring challenges, organizations are deprioritizing experience to help find and hire tech talent faster, according to Robert Half’s 2025 salary guide. Additionally, the salary guide found technology leaders are taking other measures to attract top candidates, including 45% of leaders who’ve decided to increase pay.

Alison Roller is a freelance writer with experience in tech, HR and marketing.

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