Tech unemployment in the United States rose to 4 per cent in November, continuing a steady increase that began in May, according to an analysis by CompTIA.
The data points to a sector under strain as hiring slows, job losses mount, and employers pull back amid economic uncertainty.
The number of technology workers across industries fell by 134,000 between October and November, while employment within the tech sector itself declined by more than 6,800. Job postings also dropped sharply, falling by more than 31,800, based on data from the Bureau of Labour Statistics and market intelligence firm Lightcast.
“The data is pretty definitive that the tech industry is struggling,” said Mark Zandi, Moody’s chief economist. “There’s a jobs recession in the industry, and it feels like that’s going to continue given the slide in postings.”
Tech firms have cut jobs while reorganising around artificial intelligence and cost controls since last year. Amazon, Meta and Microsoft have laid off thousands of workers even as revenues remained strong and AI spending increased.
“For the longest time, tech was the tailwind to jobs and the broader job market,” Zandi said. “That tailwind has now turned into a headwind, and that headwind feels like it may just blow harder going forward.”
Software, cybersecurity and web development consultants have been among the hardest hit, according to CompTIA. Tim Herbert, the group’s chief research officer, said reduced project spending and weaker government and overseas demand are key factors.
“In some cases, it can be a bellwether on how other types of companies are performing when they stop hiring tech consulting services,” Herbert said.
Tech unemployment remains below the national rate of 4.6 per cent, but the gap is narrowing. Employers remain cautious, delaying hires as uncertainty persists. More than 141,000 tech job cuts have been announced this year, up 17 per cent annually, even as firms plan up to $375 billion in AI investment.
“If you have AI skills, there seems to be jobs,” Zandi said. “But if you don’t, I think it’s going to feel like you’ve been hit by a dump truck.”