2026 tech job market statistics and outlook

1. Tech jobs in the U.S. are projected to grow at twice the rate of the overall workforce in the next decade

Tech jobs in the U.S. are projected to grow much faster than average, according to the Computing Technology Industry Association's (CompTIA) 2025 "State of the Tech Workforce" report. The report projected tech job growth from 6.09 million in 2025 to 7.03 million in 2035, including:

• 414% growth for data scientists and data analysts.
• 367% growth for cybersecurity analysts and engineers.
• 297% growth for software developers and engineers.
• 220% growth for software QA and testers.

According to November 2025 research from the Bureau of Labor Statistics (BLS), computer and IT occupations are expected to grow much faster than average from 2024 to 2034, with a projected 317,700 job openings annually.

However, Indeed reports a sharper decline in tech jobs over the past few years, with U.S. tech job postings down 36% from February 2020 to July 2025, according to the 2025 Tech Talent Report.

2. More than 90% of organizations worldwide will be affected by the IT skills shortage by 2026

By 2026, the IT skills shortage is expected to become a significant problem for most organizations globally, resulting in $5.5 trillion in losses, according to an IDC survey of North American IT leaders.

The IT skills shortage may already be here. No longer a looming issue, AI and other technologies continue to advance at a faster rate than workers and organizations can react. Staffing firm Robert Half reported that 87% of tech leaders who responded to its survey currently face challenges finding skilled workers.

3. Skills-first hiring is on the rise for remote tech roles

According to the General Assembly's State of Tech Talent 2025 report, the number of HR leaders who are likely to use skills-first hiring, which focuses on certifications and non-degree education, has tripled in just two years. Eighteen percent of HR professionals are increasingly likely to use skills-first hiring for remote roles in software engineering, data analytics, data science and UX design.

A skills-first strategy can help bridge the ever-growing skills gaps. According to the General Assembly report, 95% of respondents say it's harder now than it was three years ago to find candidates with the technical and soft skills they need to succeed.

Indeed's recent research has echoed the same sentiment, with 45% of managers reporting a lack of skilled applicants as their main hiring challenge.

In addition to skills-first hiring, organizations continue to prioritize upskilling, reskilling and cross-skilling to bridge skills gaps. After all, the half-life of technology skills is as short as 2.5 years, according to Harvard Business Review.

4. AI/ML engineers and data engineers are among the most in-demand tech roles

According to Robert Half's 2025 In-Demand Technology Roles and Hiring Trends report, AI analysts, DevOps engineers, data analysts and cloud engineers were among the top 15% of in-demand roles.

The report also identified the most in-demand tech skills, including data science, IT operations and cybersecurity. Research from Robert Half's 2026 Salary Guide also found that companies are willing to pay more for in-demand skills, such as cybersecurity, data analytics and software development.

5. The estimated median tech wage in the U.S. is $112,667

CompTIA's State of the Tech Workforce 2025 report found that the median wage for tech workers in the U.S. is 127% higher than the median national wage. Salaries for tech roles ranged from approximately $50,000 for the 10th percentile to nearly $200k in the 90th percentile.

The BLS reports that computer and IT occupations had a median annual wage of $105,990 in 2024. According to the BLS, computer IT managers and computer hardware engineers had the highest median pay with average salaries of $169,510 and $155,020, respectively, followed by computer and information research scientists, computer network architects and computer programmers.

6. AI technical skills are more desirable than ever, appearing in 78% of ICT roles

According to a 2025 report from the AI Workforce Consortium, led by Cisco, AI skills are more pervasive than ever in tech roles, with 78% of information and communications technology (ICT) roles including AI technical skills. Seven out of the 10 fastest-growing ICT roles were AI-related, according to the report, including:

• AI/ML engineer.
• AI risk and governance specialist.
• NLP engineer.

Demand for skills in AI governance is up 150% and AI ethics skill demand is up 125%, according to the report, and critical skill gaps were identified in areas such as generative AI, large language models and prompt engineering.

Indeed's Hiring Lab reported that generative AI job postings increased by 170% from January 2024 to January 2025, although they still account for a relatively small portion of total jobs. Roles that mentioned generative AI included management consulting roles, as well as machine learning engineers and data scientists.

7. Generative AI will affect tech jobs more than other sectors

The Indeed Hiring Lab's AI At Work Report 2025 found that the rise of generative AI will have a bigger effect on the tech sector.

The report analyzed nearly 3,000 skills to find how deeply they will be transformed by the adoption of generative AI. Fifty-four percent of skills are likely to undergo deeper transformation, according to the report, and these are predominantly technology-related. Technology skills also dominate 57% of the fully transformable skills identified by Indeed.

8. More than 178,000 tech employees have been laid off in 2025

Layoffs, which have been rampant in the tech industry since the pandemic, aren't stopping. TrueUp's layoff tracker reported over 600 rounds of tech layoffs in 2025, affecting nearly 600 people per day. By the end of the year, an estimated 211,000 tech employees are expected to be impacted by layoffs.

According to a 2025 General Assembly report, 54% of tech hiring managers stated that they are likely to conduct layoffs this year, and many attributed the blame to AI. Forty-five percent of hiring managers said roles that can be replaced by AI are most at risk of being eliminated, and 44% said employees with outdated skill sets are more likely to be let go.

Tech employees are also feeling the effects of layoffs, with 31% reporting concerns over being laid off, according to Indeed's 2025 Tech Talent Report, and 41% are likely to look for new roles if their company undergoes layoffs that don't affect them.

9. New graduates are facing higher unemployment rates

According to research from Encoura, recent college graduates in computer engineering and computer science are seeing unemployment numbers similar to those of fine arts graduates, compared to the overall average.

Recent computer engineering graduates have an unemployment rate of 7.5%, while computer science graduates experience a 6.1% unemployment rate, compared to the overall rate of 3.6%.

Why it matters to executives

Since 2020, the state of hiring in the tech sector has been volatile and unpredictable. Between the tech boom in 2020 and the rapid adoption AI, as well as rampant restructuring across the tech industry, organizations have had to navigate numerous changes that have impacted hiring.

Executives need to stay informed about the tech job market to make the most well-informed, strategic decisions for their organization. Understanding current trends and future market predictions can help leaders develop essential strategies, such as succession plans, leadership pipelines and skill development.

For example, if there is a hiring slowdown, CIOs may want to prioritize upskilling and reskilling over external hiring, which can affect budgets and executive strategies going into 2026.

Alison Roller is a freelance writer with experience in tech, HR and marketing.