Hotter than a GPU in July: some tech jobs skyrocket, unemployment rate slides

US employers added more than 90,000 tech workers in June, pushing the industry’s unemployment rate down from 3.4% to 2.8%, according to a CompTIA analysis of the latest Bureau of Labor Statistics (BLS) data.

The Computing Technology Industry Association (CompTIA) reported that tech unemployment remains well below the national average of 4.1%. “Tech employment showed surprising strength for the month given recent expectations,” said Tim Herbert, CompTIA’s chief research officer. “It’s worth pointing out there is more to tech hiring than AI. The data continues to confirm employer hiring activity across many tech talent domains.”

Even so, CompTIA’s AI Hiring Intent Index showed a 153% year-over-year increase in jobs requiring AI skills, with demand rising for AI specialists such as architects and engineers. Those gains remained concentrated among select employers.

Companies also continue to focus on skills-based hiring, with nearly 50% of June tech job postings not requiring a four-year degree. Open roles span various tech fields and experience levels, from entry to senior positions.

Active employer job listings for tech positions reached 455,341 in June, with 47% of the total (211,924) newly added last month, according to CompTIA’s analysis of Lightcast job posting data. At the same time, tech sector companies themselves reduced staffing by a net 7,256 positions across all job role types. The tech manufacturing sector accounted for the largest share of job losses, mirroring broader uncertainty about US manufacturing activity.

Even Janco Associates, which has been more bearish about the IT job market, reported a drop in the tech unemployment rate. (Janco pegged the drop from 4.6% to 4.0% in June.)

“With the passage of the new budget bill, CFOs and CIOs are more optimistic and are starting to look forward to working on new technology initiatives,” Janco CEO Victor Janulaitis said. “There still are a limited number of IT pros with working AI and omni commerce experience.  They continue to be in high demand.”

Nationally, the overall unemployment changed little, ticking down just one-tenth of a percentage point from 4.2% to 4.1% in June. Employers added 147,000 jobs last month compared with 144,000 in May, according to the BLS.

Even with unemployment remaining near historic lows, recent graduates will continue to struggle to get that first tech job, according to researchers. Daniel Zhao, a lead economist for job platform Glassdoor, sees a bottleneck for workers trying to enter the tech industry, “like the tens of thousands of new grads in computer science each year.”

“And we can see that problem in the unemployment rate for computer and mathematical occupations which has been elevated since 2024,” he said. “The measure is very volatile so I would not focus on monthly changes, but it tells a story of workers in tech roles finding it harder to get a job.”

Janulaitis said the number of tech workers looking for jobs outside of the IT industry increased. “We believe that many low-skilled, legacy-skilled IT pros, or displaced IT professionals, have stopped looking for jobs in the IT sector,” he said. “We have found that hiring and job growth continue to be in small to mid-sized enterprises.”

“Many large firms are using AI to boost productivity and replace lower-level roles, slowing entry-level IT job growth — especially in customer service, reporting, telecom, and automation. Executives are also cutting non-essential staff and services,” Janulaitis added.

HR specialists have told Janco that about 4% to 5% of unemployed tech workers are looking outside the industry. “IT pros in the middle of their careers look at AI as a threat to their further employment,” Janulaitis said.

Tech and federal cuts have recently led the way in layoffs, driven by economic pressure, programmatic firings and AI-driven shifts in workforce needs, according to outplacement firm Challenger, Gray & Christmas. The rise of AI is reshaping roles and required skills.

Technology remains a top sector for cuts amid ongoing disruptions, according to the Challenger, Gray & Christmas data.

The effects of the US President Donald J. Trump’s unofficial Department of Government Efficiency (DOGE) are being felt as many IT contracts are on hold, and government IT workers face uncertainty” Janulaitis said.

Ger Doyle, regional president for North America at ManpowerGroup, said for the most part, employees are staying put, employers are holding steady, and “everyone is waiting for clearer signals.”

“This is collective caution, not crisis,” Doyle said. “With project management roles surging 483% year-over-year and AI skill mentions holding strong, especially among software developers and data professionals, there are signs that strategic priorities are shifting, not stalling. “

The often-cautious Janulaitis said interviews with more than 130 CFOs and CIOs showed that many feel there is a good chance of an economic downturn in the second or third quarters of 2025.  “However, it will not be deep or long in duration,” he said.

The tech job market is adjusting as AI grows. AI skill mentions dipped 10% in May but are up 10% year-to-date. With only 10% of CIOs fully using AI, most firms are still early, using AI to enhance — not replace— roles, according to Experis North America, an IT professional jobs firm.

Kye Mitchell, head of Experis North America, said as companies shift to AI rollouts, demand for data roles soars. Database architect postings are up 2,140% and data scientist roles are up 280%, reflecting the push to build AI-ready infrastructure.

“This shift is also reshaping how talent enters the industry,” Mitchell said. “Entry-level opportunities are becoming more limited, making it harder for recent graduates to gain a foothold. For those looking to break in, deep analytical and technical skills are no longer optional.”