The US technology projects market is poised to rebound in 2025 after a turbulent generation marked by layoffs and strategic shifts in reaction to advances in artificial intelligence.
According to Karat and Harris Poll’s latest Tech Hiring Trends report, the industry is emerging from a multi-year downturn characterized by a transition from high-volume hiring to a more focused approach on quality recruitment.
The recent evolution of the technology sector has been tumultuous, beginning with a natural correction of the sharp increase in post-pandemic hiring, which then turned into widespread job cuts. The landscape was shaken up even more two years ago with the arrival of ChatGPT, giving businesses a boost. Leaders are recalibrating their recruiting methods and redirecting their investments toward AI initiatives. This has led to a prolonged cooling of the labor market, with corporations prioritizing the quality of each new hire over quantity.
As we approach 2025, the initial wave of generative AI progress appears to be stabilizing, and hiring targets are showing signs of improvement compared to previous years. The tech job market is adapting to the new AI-driven landscape and preparing for renewed growth, albeit with a more strategic and quality-focused approach to talent acquisition.
Despite a five-year low in software engineer job postings, the U.S. tech industry remains optimistic about hiring, with companies targeting an average of nearly 300 open software engineer roles, representing a 12% year-over-year increase, the report found.
The hiring landscape extends beyond domestic borders, with 81% of U.S. engineering leaders planning to hire abroad. While this shift toward global talent acquisition reflects the industry’s adaptability and recognition of the diverse skill sets available internationally, the globalization and offshoring of U.S. jobs will further intensify competition for available positions.
In addition, as a reaction to last year’s downturn, there has been a noticeable increase in contractor hiring: 28% of U. S. executives now prioritize outsourcing through Array contractors. This cost-cutting incentive can lead corporations to prioritize hiring contractors over full-time positions. , which may just be the number of full-time jobs in 2025.
The tech industry is shifting from mass hiring to quality hiring, as companies prioritize the impact of each new worker in a slowing labor market. This is evidenced through Karat’s skills assessments, which reveal a 12% increase in the average technical interview score required for assigned tasks at major technology corporations over the past year.
Moreover, in this employer’s labor market, organizations have the luxury of being more selective in their hiring decisions. Companies are taking advantage of this opportunity by attracting more qualified applicants at each and every level of the hiring process. As a result, engineering managers report a higher average number of applicants who go through interview levels, allowing them to make more informed decisions and ultimately achieve better performance. quality of its employees.
As the tech sector gears up for 2025, AI engineering roles are emerging as the top hiring priority, with a dramatic increase in demand compared to previous years. According to the report, 60% of U.S. tech managers are hiring for AI engineer positions, a significant jump from 35% last year. This surge in AI-focused recruitment is complemented by a growing need for full-stack engineers, who play a crucial role in building AI systems, marking the second-largest increase in hiring priorities.
The emphasis on AI extends beyond specialized roles and will impact the skill sets sought after in software engineers across the board. Managers will prioritize AI-related competencies, including AI engineering skills, the ability to integrate AI functionality into products via APIs and data science capabilities.
Furthermore, in-demand AI capabilities are not limited to core development spaces. Many technology employers also prioritize applicants with experience leveraging AI team coding processes, training new AI models, learning devices, interpreting or analyzing data. AI effects and immediate engineering.
The immediate integration of AI across industries is reshaping the task market for generation professionals, opening up new opportunities beyond classic generation companies. This shift is especially evident in the financial services industry, which is attracting more and more technological skills as it embraces AI-driven inventions and virtual transformation.
Recent insights from the most sensible universities illustrate this trend. At Cornell University, the share of computer science graduates entering the money industry increased from 16% in 2022 to 22% in 2023. Similarly, Carnegie Mellon University’s Heinz College reported an increase in the percentage of graduates with master’s degrees in data systems control. opt for a career. in the monetary pool from 16% between 2018 and 2021 to 19% between 2020 and 2023.
As banks and fintech corporations continue to integrate complex technologies into their operations, they are competing more aggressively for the most sensible tech talent, offering exciting opportunities for professionals to apply their skills to the advancement of next-generation money products and services.
“The past few years have been a unique opportunity for enterprises to bolster our internal engineering teams with the pause in big tech hiring, and we’ve really used that time to elevate the quality of our software organizations,” Michael Ruttledge, chief information officer at Citizens Financial Group, stated in the report.
A community. Many voices. Create a free account to share your thoughts.
Our network aims to connect others through open and thoughtful conversations. We need our readers to share their perspectives and exchange concepts and facts in one space.
To do this, please comply with the posting regulations in our site’s terms of use. Below we summarize some of those key regulations. In short, civilized.
Your message will be rejected if we realize that it seems to contain:
User accounts will be locked if we become aware that users are engaging in:
So, how can you be a power user?
Thank you for reading our Community Standards. Read the full list of posting regulations discovered in our site’s Terms of Use.