By Ringside Talent
June 14, 2025
The U.S. tech jobs market kicked off 2025 with a surprising one-two punch: strong job growth and rising unemployment. According to CompTIA’s latest analysis of Bureau of Labor Statistics data, employers added 228,000 technology roles in January—the second consecutive month of gains. Even more promising? Job postings surged by 51,000, bringing the total number of open tech positions to 476,000.
But here’s the twist: IT unemployment rose to 2.9%, up from 2% the previous month—even as the national unemployment rate dipped to 4%.
So what’s going on? And what should employers and jobseekers make of these seemingly conflicting signals?
IT Unemployment Is Up But It Doesn’t Mean the Market Is Cooling
The uptick in tech unemployment doesn’t signal a market slowdown, it reflects a seasonal job-seeking surge. Many tech professionals paused their searches in December, then returned to the hunt in January. This increase in active jobseekers temporarily drove up the unemployment rate, even though demand remains red hot.
At the same time, several major tech players—including Microsoft, Salesforce, and Google—announced targeted layoffs or voluntary exit packages. January has become a traditional time for strategic workforce reshuffling in Big Tech, but these adjustments don’t reflect broader weakness in the industry.
If anything, demand is intensifying.
AI and Data Science Talent in the Spotlight
The talent crunch isn’t across the board—it’s deeply concentrated in high-demand verticals. AI and machine learning roles are seeing record-breaking job posting volumes, with over 40,000 openings requiring AI skills in January, up from 38,500 just a month earlier.
Over 80% of IT decision-makers are worried they don’t have enough skilled professionals to meet their digital transformation goals. Their top strategies to fill the gap? Upskilling existing employees and targeted hiring in AI, data science, and cybersecurity.
What This Means for Employers
The market is shifting and companies that want to secure elite tech talent need to act fast and think strategically.
At Ringside Talent, we help our clients stay ahead of the curve by:
- Tapping into niche networks of highly skilled professionals in AI, data, cloud, and DevOps.
- Advising on compensation benchmarks that attract, not repel, the best talent.
- Streamlining the hiring process so top candidates don’t get lost in the shuffle.
Even in a market with hundreds of thousands of openings, quality hires aren’t sitting around. They’re evaluating culture, flexibility, mission, and yes, salary. Companies that move slowly or under-invest in their hiring strategy risk losing the talent war.
What This Means for Candidates
If you’re a tech professional in the job market, don’t let the unemployment stats rattle you. The demand for talent, particularly in growth areas like AI, machine learning, and data analytics, is strong and growing.
This is your moment to:
- Upskill into emerging areas of demand,
- Seek out roles that align with your long-term goals,
- Partner with recruiters who understand your strengths and ambitions.
At Ringside Talent, we specialize in placing top-tier tech professionals with forward-thinking employers across industries. Whether you’re looking to level up or pivot into a new specialty, we’re here to support your next move.
Let Ringside Talent be your competitive advantage in the year ahead.