Tech unemployment jumps, even as job openings increase

The unemployment rate among tech workers leaped almost a full percentage point from December to January, according to an analysis of US Bureau of Labor Statistics (BLS) data released Friday.

The unemployment rate for tech workers rose from 2.0% to 2.9%, according to IT industry association CompTIA, even as tech firms boosted employment by a net 6,787 positions in January. Despite the jump, the tech unemployment rate remained significantly below the nation’s overall unemployment rate of 4.0%, which was down from 4.1% the previous month.

Overall hiring slowed in the US, with payroll employment up by 143,000 in January, according to BLS data. The number of unemployed workers nationally remained relatively steady, at 6.8 million.

“[The] jobs report reflects a market that continues to show sluggishness and remains challenging for those looking for new jobs. 2025 is shaping up to be another year of significant changes,” said Ger Doyle, US country manager for global staffing firm ManpowerGroup.

CompTIA

New employer job listings for tech positions increased in January by 51,756 to more than 220,000, according to CompTIA. Active tech job postings in January totaled 476,000, with 8.4% of those jobs AI-related.

There were about 40,000 active AI-related job postings in January, up 1,500 from December. Among all tech roles, 45% of job listings didn’t require a four-year degree. And in some areas, college degrees were even less in demand; 83% of network support specialist listings required no degree; for tech support specialists, that number was 71%; for computer programmers, 57%; for web and digital interface designers, 53%; and for network systems administrators, it was 51%.

“Employers continue to balance the need for foundational tech talent and skills with the push into next-gen fields,” said Tim Herbert, CompTIA’s chief research officer.

One possible explanation for the increase in tech unemployment even as job postings and hiring increased is that some people might have temporarily paused their job search in December and were more actively looking for work in January, according to Herbert.

“So for BLS purposes, these individuals would not have been counted as unemployed in December when their job search was inactive, but were counted as unemployed in January because they were actively seeking work,” he said.

Herbert highlighted “robust hiring” of personnel in IT services and software development occupations (up 13,700) which offset reductions in telecommunication jobs (down 7,900). Overall, tech occupations throughout the broader economy increased by 228,000.

Kye Mitchell, head of tech recruitment at IT staffing firm Experis North America, said January’s jobs report shows a shift in demand as the generative AI (genAI) race goes from “wow” to “how.”

Elsewhere, executive management positions actually rose 16% from December, and project manager specialists soared by a whopping 587% from last year, which reflects businesses’ need for leadership to drive and implement AI initiatives effectively, according to Mitchell.

CompTIA

Who’s not in the labor force?

Overall in January, 5.5 million people not in the labor force wanted a job, unchanged from the previous month, according to BLS data. The number of workers who wanted a job was steady at 1.6 million, and 592,000 of them were “discouraged” as they felt there were no jobs available for them.

“We’re entering an era where the traditional career ladder in tech has become a career web,” Mitchell said. “The most successful organizations will be those that can offer their technology talent not just competitive compensation, but the opportunity to work at the intersection of AI innovation and business strategy. The challenge isn’t just hiring — it’s creating an environment where top tech talent can continually evolve their skills and impact.”

Traditional tech careers followed a linear path: junior developer to senior, then lead, then architect. Success once meant deep technical expertise, but today’s top professionals thrive by bridging disciplines, according to Mitchell. For example, a cloud engineer now influences business decisions on data governance, sustainability, and costs. AI developers go beyond building models—they collaborate to find impactful use cases and ensure responsible AI deployment.

To thrive in this new environment, technology professionals should focus on developing three key areas:

Technical Foundation with AI Integration* Maintaining core technical expertise while developing practical AI skills* Understanding how to integrate AI tools into existing systems and workflows* Staying current with emerging technologies like large language models and generative AI

Business and Strategic Thinking* Building financial acumen to evaluate technology investments* Understanding industry trends and competitive dynamics* Developing skills in translating technical concepts for business stakeholders

Human-Centric Skills* Leading cross-functional teams and managing stakeholders* Focusing on ethical technology implementation* Developing strong communication and collaboration capabilities

The most successful tech professionals will balance execution with strategy, understanding both the “how” and “why” of their work, Mitchell explained. That means tackling new challenges, learning from business leaders, and expanding into areas like product management and strategy.

“This shift creates vast opportunities for those who combine technical skills with strategic thinking and human insight, driving innovation and shaping the future of tech,” Mitchell said. “What’s particularly notable is how human-centric capabilities have moved from ‘nice-to-have’ to essential. The ability to lead diverse teams, navigate stakeholder relationships, and champion ethical technology implementation has become as important as technical expertise.”