IT Job Market Analysis - September 2025
Size of IT Job Market to shrink for a third year in a row
IT job market prospects are tied to overall US national employment -- Janco reports IT Job market shrank by 118,000 in the last 13 months and over 179,000 in the last 24 months
4 million individuals are employed as IT Pros in the US
Summerlin South -NV - e-janco.com - Janco reports that, according to the data provided by the BLS, the prospects for new jobs are worsening. We do this with one caveat about our concern for the quality of the BLS data. For example, the BLS adjusted down the number of jobs reported for May and June by 13,600 versus an initially reported gain of 1,400 jobs for the same period. Adjustments at those levels of magnitude are not acceptable from any organization. It can only be due to poor data capture, poor infrastructure, incompetence, or political gerrymandering.
The CEO of Janco, M. Victor Janulaitis, said, “IT job market prospects are tied to overall US national employment -- Janco reports the IT Job market shrank by 131,200 in the last 13 months and over 179,000 in the last 24 months.” In addition, “In our travels, we have noticed an uptick in retail activity. Gas prices are lower, and the rate of inflation is around 2% versus the 9% peak several quarters back. Perhaps that is a good omen for long-term IT job market growth. Historically, over 50% of all IT jobs have been created by SMBs. As prospects for them improve, there will be more job opportunities for IT professionals.”
Janco’s CEO said, “According to the latest revised data by the BLS, the IT Job Market shrank by 9,600 YTD. That is after adjusting the June data down by 4,500, and the July data down by 10,900 jobs, and reporting that 1,300 jobs were lost in August. That is on top of the adjustments made to the prior months. Also, deep in their data, the BLS reports there are over 200K open IT positions with an unemployment rate of 4.5% for IT Pros.”
Janulaitis added, “We will continue to report the BLS data; however, we are in the process of redoing our IT Job Market forecasting models to consider other public and private data.
BLS Adjustments in September 2025
The BLS reduced the number of jobs intinallly reported in June and July by 9,400. They can still adjust down the July number of jobs when the release the next report in October.
BLS Adjustments in August 2025
The BLS reduced the number of jobs intinallly reported in May and June by 12,100. They can still adjust down these number of jobs when the release the Annual report of jobs created.
September IT Unemployment Rate - 4.5% versus National Unemployment Rate - 4.3%
Most of the unfilled positions (200,000) continue to be associated with AI, LLM, Blockchain, and OmniCommerce. IT opportunities will expand in the last two quarters of 2025. Our data shows the positions available will be in SMBs versus larger enterprises, as they prepare for the implementation of the approved federal budget and tariffs. AI is showing its impact in IT as many customer service and monitoring positions are automated. CIOs we interviewed have expressed a need to hire new staff to meet AI initiatives and the focus on productivity.”
He added, “The IT job market has continued to shrink. We now believe that is a long-term trend. The impact of the new tax laws, job creation in the US due to investments, and tariff revenues may offset it.”
He added, “There still are a limited number of IT Pros with working AI and Omni Commerce experience. They continue to be in high demand. IT pros with legacy skills in small markets, such as Nashville and Tulsa, have a difficult time finding positions. Those in large markets like Dallas and New York have more opportunities. From our conversations with HR specialists, we find that approximately 4% to 5% who are out of work are choosing to look outside of the IT field. IT Pros in the middle of their careers look at AI as a threat to their further employment.”
The CEO added, “The impact of DOGE now is being felt as many contracts for IT Professionals have been put on hold, and government IT pros do not have a clear picture of what the future holds for them. In the first two quarters of 2025, the IT job market shrank slightly – 1,200 jobs. The number of unemployed IT professionals rose to remained at 183,000. We believe that many low-skilled, legacy-skilled IT pros, or displaced IT professionals, have stopped looking for jobs in the IT sector.”
The CEO added, “According to the latest BLS data analyzed, there are now approximately 4 million jobs for IT Professionals in the US. Economic uncertainty continues to hurt overall IT hiring. Large high-tech firms continue to focus on improving bottom lines and justify investments in AI and LLM solutions.”
Forecast for IT Job Market Size for CY 2025
Janulaitis added, “Companies that provide outsourcing services and consultants are scrambling to maintain their existing contracts. There are few opportunities for outsourcers as many CEOs want to reduce costs and show they want to be in the US. Consultants who are not in the AI space are not hiring, and some are even reducing staff.” Janco’s current forecast is that the IT job market will continue to shrink. That will make that the third year in a row where there will be fewer jobs for IT Pros in a single calendar year.
Sementation of the IT Job Market
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Janco is an international consulting firm that follows issues that concern CIOs and CFOs. The firm publishes a series of IT and business Infrastructure HandiGuides® and Templates including IT Infrastructure Policies and Procedures, Disaster Recovery/Business Continuity Template, Security Template, IT Job Descriptions, and its semi-annual IT Salary Survey.
