Dive Brief:
- The tech job market has ebbed and flowed over the past year, but a new report from Indeed suggests a more significant shift: Job postings are down nearly one-third since pre-pandemic levels. The company tracked job posting data through Oct. 31 for the Thursday report.
- Job postings in key technology positions fell year over year as the sector remains in "low-hire, some-fire" mode, according to Laura Ullrich, director of economic research at Indeed's Hiring Lab, a finding she expects to continue in 2026. Data and analytics job posts fell 13% compared with last year, while IT systems and solutions postings were down more than 9%.
- The chill in hiring is partly driven by waves of overstaffing during the post-pandemic boom, according to Ullrich, but more recent AI adoption has also played a role. "AI didn't cause the bust in hiring in the tech sector, but it might be preventing it from recovering at the same rate it would have," Ullrich told CIO Dive.
Dive Insight:
The tepid hiring market for IT roles comes as top tech vendors reshape business structures, citing AI as a key driver. AWS, Intel and Microsoft have laid off tens of thousands of workers this year amid major strategy changes.
But the slowdown has not affected all tech jobs equally.
"If we look at job postings in tech, it's very clear that there have been reductions in job postings in entry-level tech jobs," Ullrich said. Roles that include terms like "developer" or "analyst" have been more impacted than others, reflecting general fluctuation also seen in the broader job market.
As executives deploy AI tools, a key draw to use cases is the automation of low-level, repetitive tasks. Despite swirling concerns about an AI bubble or economic headwinds, demand for IT experience is unlikely to fade anytime soon.
"I worry about all the stories out there that just make it seem kind of hopeless," Ullrich said. "We still need a lot of people that have technical skills, and those people are needed across all the sectors and the economy."
