Tech Jobs Report Shows Hiring Slowdown in July

Tech Unemployment Drops Slightly, Though IT Industry Stays in Line with US Economy?

Last month the IT industry experienced a slowdown in hiring, with over 9,000 jobs lost in July according to data in CompTIA 's recently published Tech Jobs Report. With a total of 5.6 million workers in the US tech industry, this loss is only a minor setback. However, with tech workers across the entire economy dropping by 14,000 positions, there is uncertainty about how the second half of the year will unfold for the IT sector.

“While not immune to economic challenges, the tech industry remains one of the strongest elements of the US economy,” said Matt Milano , President of?Motion Recruitment. “While these times can be tough for job seekers, tech candidates can focus on adding value. Enhance your skillset by finding ways to align with market demand, such as upskilling with AI tools or addressing strategic gaps many employers struggle with, like soft skills.”

There were positive notes inside the report, as the tech unemployment rate dropped to 3.2%, remaining below the national average of 4.3%. Additionally, while all the largest cities in the US saw a decrease in job postings, smaller cities like Richmond, Lansing, and Indianapolis experienced month-over-month increases in postings.

"IT companies should maintain a long-term perspective on their hiring plans," said Milano. "Keep your overall goals in mind despite market fluctuations, and lean into contracting for urgent or short-term needs to help balance risk with project needs.”

Even with these numbers, there appears to still be demand for tech workers across the US economy. Active tech job postings totaled over 470,000 last month, with upwards of 176,000 new job postings in July. Software Developers and Engineers continue to lead in job postings, with nearly 45,000 this month, despite a nearly 19% month-over-month drop in postings.

Another interesting consideration in CompTIA’s report is that 46% of all active tech job postings did not specify a requirement for a four-year degree. This indicates a growing emphasis on skills-based hiring preferences over traditional educational qualifications.

Remote hiring experienced a month-over-month decline, with just over 28,000 remote tech job postings in July, down 7,000 from the previous month.?

“Although disappointing, the slowdown in hiring is about in line with expectations,” said Tim Herbert, Chief Research Officer at CompTIA in a press release. “Employers continue to weigh a range of factors in shorter term tech hiring while eyeing longer term growth strategies.”?

Contact your local Motion Recruitment office today to learn how we can help you make your next move in the IT industry, whether you're a hiring manager looking to fill specialized tech roles or a tech worker exploring new opportunities.