February’s IT job market in the US shows mixed signals; unemployment ticks up

“Sluggish” might be the best word to describe the IT job market after the US Bureau of Labor Statistics (BLS) published its data for February employment today.

The data offered mixed signals for US tech jobs: even though the number of tech roles grew, unemployment rose. And while tech companies cut staff, nearly 490,000 job postings were made.

The unemployment rate continued to climb for the IT marketplace, to 3.3% in February from 2.9% in January. It was the second month in a row the unemployment rate grew, according to ComTIA, a non-profit trade association. The numbers represent a dramatic increase in tech unemployment compared with December’s 2.0% rate.

Janco Associates, which uses different metrics than CompTIA to determine tech unemployment, pegged February’s unemployment rate at a much higher 5.4% — though that number is still down from 5.7% in January.

Janco said the number of unemployed IT professionals dropped slightly in February to 148,000 from 152,000 in January.

“There continues to be uncertainty in the outlook for IT initiatives,” said Janco CEO Victor Janulaitis. “A preliminary impact of DOGE is being felt, as many contracts for IT professionals have been put on hold and government IT pros do not have a clear picture of what the future holds for them.”

DOGE stands for the unofficial “Department of Government Efficiency” put into place by President Donald J. Trump; it is being overseen by tech entrepreneur Elon Musk.

According to BLS data, the IT job market shrank by 9,100 positions in early 2025, Janulaitis said. Economic uncertainty, including stock market fluctuations and concerns over inflation, tariffs, tax cuts, and global conflicts, is responsible for the hiring slowdown, he said.

Kye Mitchell, head of tech recruiting firm Experis North America, agreed that tech demand so far this year is down 6%. “It remains challenging for those looking for new jobs, even as employers face talent shortages,” he said. “However, there is optimism that AI can be used to effectively upskill and reskill existing employees as hiring continues to stall and people hold on to the jobs they have, given economic uncertainties.”   

Employer hiring for those with AI skills continues to trend upward, according to a CompTIA analysis of Lightcast job posting data. Active job listings referencing AI skills in some capacity was up 116% in February compared to the same period last year, while hiring for dedicated AI job roles increased 79% during the same time frame, according to CompTIA.

February’s IT unemployment rate remained well below the national unemployment rate of 4.1%. The overall number of unemployed Americans, 7.1 million, changed little from January, and the overall national unemployment rate has remained in a narrow range of 4.0 percent  to 4.2 percent since May 2024, according to the BLS data.

Typically, January and February see increases in employment and a drop in unemployment.

The jobs report shows a market trying to balance itself amid falling consumer confidence and ongoing economic uncertaintyr, according to Ger Doyle, US country manager for staffing firm ManpowerGroup. While the labor market remains resilient, job seekers face challenges, and signs of cooling indicate cautious employer behavior.

“This year, our real-time data shows that demand is down 6%,” Doyle said in a statement. “We’re also seeing month-over-month declines in areas tied to consumer confidence and goods production — particularly with retail managers, where demand has dropped 16% — and in wholesale and manufacturing, down 20%. These declines are noticeable and indicate that the pace of hiring has slowed.”

Employment by tech sector companies declined by a net 11,514 positions in February, with tech services and tech manufacturing accounting for most of the retreat. At the same time, tech employment across all industry sectors increased by an estimated 177,000 for February, according to CompTIA’s analysis.

“As expected, the report paints a mixed picture, as labor market data catches up to market developments,” said Tim Herbert, chief research officer at CompTIA. “Recent employer tech hiring and future hiring intent indicators remain steady, so [that offers] a degree of reassurance.”

The march toward skills-based hiring continued, as nearly one-half of all tech occupation job postings did not specify a four-year degree requirement for applicants, CompTIA said.

Some IT jobs had a far higher percentage of openings without four-year degree requirements. Those included: network support specialists (85%), tech support specialists (71%), computer programmers (57%), network systems administrators (54%) and web and UI/UX designers (53%).

According to BLS data, employment trended up in vertical markets such as healthcare, financial activities, transportation and warehousing, and social assistance. But US government employment declined, a result of President Donald J. Trump’s efforts to cull the federal workforce through firings and steps by DOGE to eliminate positions and even whole agencies.