America’s technology labor market showed increasing signs of strain as the unemployment rate for tech occupations climbed to 4.0% in November 2025, according to recent data analysis cited by The Washington Post. This marks a rising trend in tech joblessness that has been building since spring, highlighting mounting challenges for workers and companies alike.
Between October and November, the total number of technology workers across all industries fell by about 134,000 jobs, while employment specifically within tech companies dipped by over 6,800 roles, data show. Meanwhile, tech job postings dropped by more than 31,800, indicating not just layoffs but reduced hiring demand. These figures draw on U.S. Bureau of Labor Statistics data and employer analytics from market-intelligence firm Lightcast, as reported by the Washington Post.
Economists are blunt about what these trends signal. Mark Zandi, chief economist at Moody’s, told the Post that the tech sector is likely in a jobs recession, driven by declining hiring and ongoing industry uncertainty. “There’s a jobs recession in the industry,” he said, adding that the slide in postings suggests the slowdown may persist.
Although tech’s unemployment rate remains just below the broader U.S. unemployment rate, which climbed to 4.6% in November, the highest since 2021, the gap between them has narrowed. Tech jobs traditionally pay above average and have historically remained resilient, but recent months suggest this insulation is weakening.
National labor data also show mixed signals: while the U.S. economy added 64,000 jobs in November, labor market strength is fading, and job creation now averages far fewer openings monthly than earlier in 2025, according to multiple reports.
Tech companies have been cutting headcounts aggressively throughout 2025. Challenger, Gray & Christmas, an outplacement and layoffs tracker, reports more than 141,000 announced tech job cuts so far this year, roughly 17% higher than the same period in 2024, pointing to deep and broad workforce reductions.
At the same time, Big Tech giants including Google, Microsoft, Meta, and Amazon continue to pour money into AI infrastructure, with planned investments totaling up to $375 billion this year. This paradox, heavy investment in next-generation tech alongside cuts in workforce, underscores a labor market in transition.
One of the stark trends highlighted in tech employment data is the growing demand for AI-related skills. According to CompTIA’s analysis, 41% of all active tech job postings now require AI expertise or list it as a preferred skill. This shift is reshuffling opportunity: workers with AI fluency are still seeing demand, while those without such skills face steeper hurdles.
Economists such as Zandi note this divide clearly: “If you have AI skills, there seems to be jobs. But if you don’t,” he said, “it’s going to feel like you’ve been hit by a dump truck.”
CompTIA surveys of IT leaders suggest many companies remain in “wait and see” mode, pausing new hires or delaying backfills until there’s more clarity on broader economic conditions and the impacts of AI automation on productivity and workforce needs.
University of Michigan economist Justin Wolfers also expressed concern about ongoing uncertainty, highlighting recent Federal Reserve indications that job growth figures may be overstated and the labor market softer than it appears. “That’s pretty grim,” he said, suggesting further volatility lies ahead.
In summary, the U.S. tech employment landscape in late 2025 reflects a shifting macroeconomic backdrop with layoffs and hiring slowdowns contrasted against robust investment in AI. Workers with skills in emerging technologies are faring better, but many are finding the market more challenging than in recent years.
