The technology job market experienced a significant downturn last month as companies grappled with economic uncertainties, according to new employment data released Friday.
Tech sector companies cut a net 7,000 positions in April, while tech occupation employment across the broader economy declined by an estimated 214,000 positions, according to CompTIA’s analysis of the U.S. Bureau of Labor Statistics data.
The tech unemployment rate rose to 3.5% in April, up from 3.1% in March, reflecting the broader pullback in hiring.
Despite the job losses, employers still posted nearly 203,000 new technology positions last month, suggesting companies may resume hiring once market conditions stabilize.
“It was not a great month of data, but expected given the circumstances,” said Tim Herbert, chief research officer at CompTIA. “Employer tech job postings continue to hold up, so a possible sign that hiring will resume as companies find their bearings.”
AI positions show substantial growth
Job postings for artificial intelligence positions or roles requiring AI-related skills continue to buck the overall trend, reaching 55,726 new listings in April—a 184% increase compared to the same month last year.
The most in-demand tech roles included software developers and engineers, systems engineers and architects, tech support specialists, cybersecurity professionals, and network engineers.
Companies are increasingly embracing skills-based hiring strategies, with approximately half of all April tech job postings not specifying a requirement for a four-year academic degree.
Regional hiring variations
California led all states with 26,280 tech job postings in April, followed by Texas, Virginia and New York. Arizona, West Virginia and Maryland showed the largest month-over-month percentage increases in tech job postings.
Major metropolitan markets remained active in tech recruitment, with New York City (12,526), Washington, D.C. (11,945) and Dallas (9,789) posting the highest number of openings. Notable growth occurred in San Francisco, Phoenix and Trenton, which saw double-digit increases in job postings from March to April.
The overall hiring decline comes as the tech sector continues adjusting to economic pressures while maintaining plans for strategic talent acquisition, particularly in emerging fields like artificial intelligence.
