Tech Hiring Remains Steady, Unemployment Rises in Latest Tech Jobs Report

Tech employment in the U.S. grew by 177,000 in February, but rising tech unemployment rates and a decline in new job postings present a mixed picture in CompTIA ’s latest Tech Jobs Report.

Artificial intelligence remains a driving force in tech hiring. Job listings that reference AI skills have surged 116% compared to February 2024, while job titles and roles explicitly mentioning AI have jumped 79% year over year.

While the overall tech workforce expanded, tech sector companies faced a decrease of 11,500 workers. The biggest losses occurred in IT and Custom Software Services/System Design, which saw nearly 10,000 job cuts. However, there was a small uptick in Cloud Infrastructure, Data Processing, and Hosting roles.

The tech unemployment rate rose again to 3.3%, though it remains well below the national average, which also increased to 4.1%.

"This month’s report highlights some uncertainty in the broader market, but the tech industry remains strong. AI advancements continue to drive job growth, and companies across the U.S. rely on tech talent to meet their financial goals in 2025,” said Phillip Perkins , Vice President of Operations at Motion Recruitment . "To stay competitive, job seekers should focus on learning open-source AI tools that can significantly boost productivity, making them more valuable to potential employers."

Job posting data showed mixed signals this month. Active job postings for core tech positions increased to nearly 490,000, while new job postings fell to around 212,000, a drop of roughly 8,000 to 9,000.

Despite news of ongoing layoffs, Washington D.C. continues to lead in tech job postings. It also saw the largest increase nationwide, surpassing 14,000 new postings. New York City, Dallas, and Chicago remained in the top four.

“As expected, the report paints a mixed picture as labor market data catches up to market developments,” said Tim Herbert, Chief Research Officer of CompTIA in a press release. “Recent employer tech hiring and future hiring intent indicators remain steady, so a degree of reassurance.” 

CompTIA notes that due to a lag in BLS labor market data, the impact of recent market changes, including federal workforce staffing shifts, is still unclear. Their analysis estimates that the Federal civilian government employed around 116,000 IT workers in 2024, not including military personnel, postal workers, or government contractors, which would push the total even higher.

With federal workforce trends adding complexity to the tech job market, staying informed about broader industry shifts is essential. Understanding these trends can help you make data-driven hiring or job search decisions. For deeper insights into tech salaries, in-demand skills, and hiring trends, download the 2025 Tech Salary Guide below.

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