The US IT job market saw another uptick in unemployment in February, marking the second consecutive month of decline. According to the Bureau of Labor Statistics (BLS) and CompTIA, the IT unemployment rate rose to 3.3%, up from 2.9% in January and significantly higher than December’s 2.0% rate.

This increase reflects growing instability in a sector that has traditionally been resilient.

Despite the rise in unemployment, IT employment across industries still expanded, adding an estimated 177,000 positions, with nearly 490,000 job postings remaining active. However, economic uncertainty, corporate hiring freezes, and cost-cutting measures have led to slower hiring.

While some companies remain hesitant to expand their workforce, demand for AI-related skills continues to rise, with job postings mentioning AI up 116% year-over-year.

Why It Matters: The rise in IT unemployment exemplifies a shift in hiring trends. While the tech industry has historically been resilient during downturns, recent layoffs and hiring freezes suggest companies are being more selective with new hires. This could make job searching more challenging for IT professionals, particularly those in roles experiencing downsizing.

• IT Unemployment Continues to Climb: The IT unemployment rate increased to 3.3% in February, marking a steady rise from 2.0% in December and reaching its highest level since mid-2024.

• Hiring Slowdowns Hit the Tech Industry: Despite nearly 490,000 active job postings, companies are taking a more cautious approach to hiring, with some delaying new hires due to economic uncertainty.

• Conflicting Job Market Data: While CompTIA reports a 3.3% IT unemployment rate, Janco Associates estimates a higher figure of 5.4%, suggesting different methodologies in tracking employment trends.

• IT Job Losses Offset by Growth in Other Sectors: While employment by tech companies shrank by 11,514 positions in February, broader industry demand for IT roles remained positive, with 177,000 new positions added across various sectors.

• Tech Professionals Face a Tougher Job Search: With employers slowing their hiring processes and favoring internal workforce adjustments, IT professionals may need to be more strategic in their job searches or consider upskilling to remain competitive.

Go Deeper -> February’s IT job market in the US shows mixed signals; unemployment ticks up – Computerworld

US announced job cuts surge 245% in February on federal government layoffs – Reuters