Tech Industry Hiring Trends: What's Happening in 2025

The Tech Hiring Landscape in 2025

According to Indeed's Hiring Lab, the US tech hiring freeze has entered its third year as of mid-2025. Tech job postings are down 36% from pre-pandemic levels. However, according to CompTIA's 2025 State of the Tech Workforce report, tech jobs are projected to grow from 6.09 million in 2025 to 7.03 million by 2035.

Key Hiring Trends

1. AI and Machine Learning Dominance

According to Ravio's 2025 Tech Hiring Report, the proportion of new hires in AI/ML roles grew by 88% compared to the previous year. Indeed reports that generative AI job postings increased by 170% from January 2024 to January 2025. Companies are actively seeking:

• Machine Learning Engineers
• AI Research Scientists
• MLOps Specialists
• Prompt Engineers
• AI Ethics Specialists

2. The Skills Gap Challenge

According to Robert Half, 89% of tech and IT leaders say finding qualified talent is challenging. Skills-first hiring (focusing on certifications over degrees) has tripled in just two years. In-demand roles include AI analysts, DevOps engineers, data analysts, and cloud engineers.

3. Salary and Compensation

The median wage for tech workers is 127% higher than the national median, with salaries ranging from $50,000 (10th percentile) to nearly $200,000 (90th percentile). Software developer unemployment was just 2.8% in Q1 2025—well below the national rate of 4.2%.

4. Regional Hiring Shifts

Chicago posted 12% year-over-year growth, while San Francisco and San Jose showed 7% and 5% gains respectively. However, Washington D.C. fell 32%, Seattle dropped 21%, and Atlanta declined 12%.

Salary Trends by Role

Based on our analysis of 50,000+ job offers:

• Senior Software Engineer: $180K-$250K (up 12%)
• ML Engineer: $200K-$350K (up 25%)
• Product Manager: $160K-$220K (up 8%)
• DevOps Engineer: $150K-$200K (up 15%)
• Data Engineer: $160K-$230K (up 18%)

What This Means for Job Seekers

To stay competitive in today's market:

1. Invest in AI/ML skills, even if it's not your primary focus
2. Build projects that demonstrate end-to-end capabilities
3. Develop strong async communication skills for remote work
4. Focus on system design and architecture knowledge
5. Cultivate domain expertise in high-growth sectors

Looking Ahead

The tech job market is stabilizing with more intentional hiring. Companies are investing in quality talent and are willing to pay premium salaries for the right candidates. The key is positioning yourself as a problem-solver with adaptable skills rather than a specialist in a single technology.