Unemployment remains low despite some turbulence in the tech labor market in 2024. CompTIA’s analysis of the October BLS report shows a 2.6% unemployment rate for tech workers, significantly lower than the 4.1% rate across the entire labor market. Meanwhile, Layoffs.fyi reports that 519 companies have laid off 149,006 tech workers in 2024, a decrease from 2023 levels.
A Glassdoor poll conducted in October found that 73% of tech workers feel stuck in their current roles, compared to 65% across all industries. This sentiment is mirrored in Glassdoor reviews, where satisfaction with career opportunities has dropped by 7.5% for tech workers over the past two years—the steepest decline among all job categories.
Despite widespread dissatisfaction, quit rates remain notably low at 1.1% in the information sector, compared to 1.9% across the broader labor market. However, as the labor market gains momentum, Glassdoor suggests there may be a rise in "revenge quitting."
From a long-term perspective, tech workers remain optimistic, with eight in 10 expecting the tech market to grow over the next five years, according to a new Dice study. Those with AI or machine learning skills are in the driver’s seat as demand continues to outpace supply in these fields. Meanwhile, other tech professionals feel increasing pressure to upskill in this area to stay competitive.
The BLS also offers good insight into other roles that will remain hard to fill and in strong demand. Data scientists, computer scientists, and information security analysts all top the list of jobs projected to have the most growth over the next 10 years.
Attracting top talent in these high-demand roles requires more than just competitive salaries; showcasing compelling benefits is an important strategy to stand out. According to Indeed, benefits are the most researched topic among tech workers before applying for a job. The benefits tech workers value most, but are least commonly offered by companies, include sign-on bonuses, four-day workweeks, unlimited PTO, à la carte benefits (customizable options), stock options, and tuition reimbursement.
What tech job seekers research:
Chart Source: Indeed Tech Talent Report, Indeed commissioned study
Value alignment is another critical factor, particularly for the Class of 2025 tech graduates. In a recent study of 700 computer science graduates, 85% stated they would “prefer to work for a company that shares their values.” Effectively communicating your company’s values during recruitment is essential, especially since many of these candidates will be evaluating multiple offers.
Flexibility remains a top priority for tech workers as well. Companies enforcing strict return-to-office (RTO) policies may significantly reduce employee sentiment. While 40% of tech workers continue to work remotely with no office requirement, an increasing number are being asked to return. According to Dice, those tech professionals required to work in an office at least one day per week report nearly double the levels of dissatisfaction (31%) compared to those who attend voluntarily (16%).
While many tech workers find jobs through recruiter outreach, 61% reported securing their positions independently, underscoring the need for a robust programmatic strategy.
A diversified recruitment marketing approach is critical across all sectors. For the tech industry in particular, the survey data below, collected by SKIM, highlights the importance of such strategies. While Indeed dominates in application volume and LinkedIn excels in active profiles and recruiter outreach, investing in a mix of major and niche job boards is essential to reach tech talent effectively.
Chart Source: Indeed Tech Talent Report, Indeed commissioned study
It’s critical to have a fully funded and well-structured search strategy to capture candidates before they reach a job board, as most job-related searches begin on Google. Engaging job seekers earlier in their search journey reduces the likelihood of them encountering competitor job postings. Additionally, job seekers actively searching demonstrate high intent and are further along in the hiring funnel.
The search engine marketing landscape is poised to continue evolving in 2025. Several key factors will shape this evolution, including:
The potential impacts on the tech labor market under new presidential leadership remain uncertain, but several key areas merit attention. Deregulation could foster innovation and increase demand for specialized talent, while tariff policies may encourage companies to reshore operations and invest domestically, creating new opportunities for U.S. workers. A reduced emphasis on DEI initiatives at the federal level, particularly in military and educational sectors, could have broader implications for tech workforce diversity.
Immigration remains a critical factor, particularly for H-1B visa holders in STEM fields. As of December 2024, the Trump administration has yet to announce plans to restrict H-1B visas, though past trends suggest potential changes. Increased scrutiny of visa applications in prior years led to longer processing times and higher denial rates. This could present challenges for companies seeking international talent and opportunities to invest in upskilling domestic workers and developing critical skills locally.
A surge in job seekers at the start of the year is a consistent trend, and 2025 is expected to be no exception. This period may also see a wave of hiring activity, with many companies having delayed decisions until after important factors like the recent rate cuts, the presidential election, and the holiday season. A surge in job postings is also anticipated as companies kick off their new hiring initiatives.
Additionally, 44% of tech workers report planning to look for a new job within the next 12 months, highlighting the need for recruiters to be ready to capture this pool of active job seekers. However, economic pressures are driving some interesting trends. According to Dice, four in 10 tech workers often have a side hustle or gig, to supplement their income. Additionally, 18% of tech workers report settling for lower pay in new roles, up from 14% last year. This may further fuel the rise in side hustles as workers seek financial stability.
Despite these pressures, tech professionals with high-demand skills, such as AI and machine learning, continue to have strong negotiating power and command competitive salaries and perks.
To capitalize on the hiring surge and adapt to evolving trends in the tech labor market, recruiters should:
Chart Source: Indeed Tech Talent Report, Indeed commissioned study
As we enter 2025, the tech labor market remains competitive and full of opportunity. Proactive companies that adapt to trends and address tech professionals’ needs will have a competitive edge.
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Need support navigating the 2025 tech landscape? Recruitics partners with leading tech companies to streamline their recruitment marketing efforts and achieve success. Contact us today to learn how we can assist you.
