Job market contraction intensifies as Bureau of Labor Statistics revises employment statistics
The U.S. IT jobs market is currently experiencing a significant transformation, with both job losses and a shift towards specialized roles, according to recent reports.
According to the Bureau of Labor Statistics (BLS), the IT job market shrank by about 26,500 jobs year-to-date as of July 2025. This marks a concerning increase in job losses compared to the same period in 2024, with over 435,000 tech jobs cut globally within the year. The IT-sector unemployment rate stands at 5.5%, higher than the national average of 4.2%.
Despite these figures, the market is not without its bright spots. Demand is growing for specialized IT profiles such as machine learning engineers, AI specialists, cloud computing experts, data architects, and cybersecurity professionals. The Department of Labor projects an 18% growth in tech jobs over the next decade, but future openings will increasingly require advanced and hybrid skills, with practical certifications becoming more valued than traditional degrees.
CompTIA confirms this trend, noting that while some IT segmentation experiences staffing reductions—including custom software, cloud infrastructure, and telecom—there is ongoing demand in roles requiring AI competency, software developers, system architects, support specialists, and cybersecurity experts. However, AI-exclusive roles have not expanded significantly over recent months, but roles with integrated AI skills are growing.
The demand for these specialized roles is reflected in the salary levels for software engineers, which remain relatively stable, with average salaries around $124,000 and senior or staff level engineers earning significantly more.
However, economic uncertainty continues to drag down IT hiring, according to Janulaitis and CompTIA. The steep downward revisions in overall U.S. jobs data for May and June 2025 signal broader economic headwinds affecting IT hiring alongside other sectors. This economic uncertainty causes hesitation among employers, leading to constrained IT job creation even as certain tech niches grow.
In response to these revisions, Janco plans to diversify its data sources for its monthly jobs report. Meanwhile, President Trump allegedly fired BLS Commissioner Erika McEntarfer after the publication of the report.
Unfilled IT-specific roles tend to be related to AI, LLMs, Blockchain, and OmniCommerce technologies, indicating a clear trend towards these areas. As the IT jobs market continues to evolve, it is crucial for professionals to adapt and acquire the necessary skills to remain competitive in this shifting landscape.
- The Department of Labor projects an 18% growth in tech jobs over the next decade, with a focus on specialized roles such as AI specialists, cloud computing experts, data architects, and cybersecurity professionals.
- Despite some segmentation experiencing staffing reductions, including custom software, cloud infrastructure, and telecom, there is ongoing demand in roles requiring AI competency, software developers, system architects, support specialists, and cybersecurity experts.
- Unfilled IT-specific roles tend to be related to AI, LLMs, Blockchain, and OmniCommerce technologies, indicating a clear trend towards these areas.
- As the IT jobs market continues to evolve, it is crucial for professionals to adapt and acquire the necessary skills in fields like AI, cloud, cybersecurity, and software to remain competitive in this shifting landscape.
