The Tech Job Market in 2025: More Openings, More AI, But a Longer Hiring Process

One of the most common questions we get is, “How’s the job market looking?” And right now, the answer is: It Depends.

Here’s what we’re seeing so far in 2025.

Tech Job Postings Are on the Rise

Tech job postings are up 15% year-over-year, which is great news for job seekers and companies alike. Demand for tech talent remains strong, even as the broader market faces some uncertainty.

One standout trend? AI-related job postings have more than doubled since last year. Whether it’s machine learning engineers, AI product managers, or data scientists, companies are racing to build AI-powered solutions, and they need the talent to do it.

Unemployment Is Up Slightly

While hiring activity is strong, unemployment has ticked up a bit:

• Tech unemployment: 3.3% (a small increase)

• National unemployment: 4.1% (up slightly)

This suggests that while there are more job openings, it’s taking longer for candidates to land the right roles. And there’s another factor at play:

Hiring Processes Are Slowing Down

Even though our job order flow in January, February, and March is up year-over-year, one key challenge we’re seeing is time to close—it’s taking longer for companies to move from the first interview to the offer stage.

Why? A few reasons:

1. More Decision-Makers – Many companies are adding extra approval layers before making an offer.

2. Increased Caution – With economic uncertainty, hiring managers want to be sure they’re making the right hire.

3. Competitive Markets – More job seekers mean companies can be more selective, but this also risks losing great candidates to faster-moving competitors.

What This Means for Job Seekers & Employers

For job seekers, patience is key. If you’re actively looking, expect a longer interview process, but don’t get discouraged—hiring is happening. If you have AI-related skills, even better!

For employers, the message is clear: speed matters. The longer you take to make an offer, the greater the chance of losing top candidates to competitors. If you’re hiring, now is the time to streamline your process.

Final Thoughts

The tech job market is growing but shifting. AI continues to be a major driver of demand, unemployment is up slightly but still relatively low, and hiring cycles are taking longer than usual. If you're a candidate or a hiring manager, understanding these trends can help you stay ahead in 2025.

About IQ Clarity: Your Strategic IT Hiring Partner

At IQ Clarity, we understand the challenges employers face. Finding the right IT professionals to meet business needs is hard. Our team offers comprehensive IT recruiting solutions. We streamline the hiring process and connect employers with top talent. Our network of IT professionals provides employers with a pool of pre-screened candidates. This allows data-driven hiring decisions. Trust IQ Clarity to be your partner in navigating the dynamic IT job market.

About Ted Hellmuth

As the Founder & GM of IQ Clarity, Ted is seeking to disrupt the technology recruiting industry. He helped Colorado companies solve their hardest technology and talent acquisition problems. Before starting IQ Clarity, he was a Talent Acquisition Consultant for Comcast / NBCUniversal. He also spent over a decade with one of the world’s largest staffing firms. Ted holds a bachelor’s degree from the University of Colorado at Boulder and an MBA from the University of Colorado at Denver. Ted enjoys spending time in the mountains with his wife and three children.