In a surprising yet welcome turn of events, the U.S. tech unemployment rate fell to 2.8% in June 2025, down from 3.3% the previous month. This decline, amid continued layoffs in some corners of the industry, reveals a more nuanced reality: while certain subsectors are shrinking, others are expanding at a healthy pace—enough to fuel a net addition of over 90,000 new tech workers across sectors.
This trend points not only to the adaptability of the tech workforce but also to the continuing demand for digital skills across industries.
A Closer Look at the Numbers
The numbers from June paint a tale of resilience. Traditional tech firms, including hardware and software providers, have continued to adjust their headcounts due to changing market conditions, AI-driven disruption, and cost optimization strategies. Yet, the talent displaced from these roles is increasingly being absorbed by non-tech industries—think healthcare, retail, logistics, and manufacturing—where technology is now central to business transformation.
These non-tech sectors are aggressively hiring developers, data analysts, cybersecurity professionals, AI/ML engineers, and IT project managers to power their own digital journeys. This trend has helped stabilize tech employment at a time when layoffs continue to make headlines.
Why the Tech Labor Market Is Still Strong
The story beneath the surface of tech employment goes beyond just headcount—it’s about evolving skillsets, role flexibility, and cross-industry demand.
- AI & Automation: As organizations deploy more AI and automation tools, the demand for roles such as prompt engineers, AI ethicists, data governance specialists, and system integrators is accelerating.
- Digital Infrastructure: Cloud migration, cybersecurity needs, and the proliferation of edge computing continue to drive hiring in infrastructure and security roles.
- Talent Mobility: Tech professionals are increasingly mobile, shifting from traditional IT companies to roles in finance, government, education, and healthcare—sectors now hungry for tech expertise.
What It Means for Tech Workers and Employers
For tech professionals, the message is clear: diversify your skills and stay adaptable. The demand is no longer confined to Silicon Valley or Big Tech—it’s in hospitals, warehouses, government agencies, and retail operations. Continuous upskilling in AI, cybersecurity, and data science is becoming critical to staying relevant.
For employers, it’s a reminder that while layoffs may be a short-term strategy, the long-term game is building resilient, future-proof teams. Smart organizations are investing in their people—through training, internal mobility, and AI augmentation—rather than simply replacing them.
The Road Ahead
While sector-specific volatility is likely to continue, the macro trend signals strength. The U.S. tech labor market is transforming, not shrinking. Talent is being redeployed where it’s needed most, fueling innovation and digital growth in places we might not have expected a decade ago.
Opportunity Behind the Headlines
A 2.8% unemployment rate is more than a statistic—it’s a sign of resilience and reinvention. Despite tech layoffs dominating news cycles, the reality is that tech workers remain in high demand, and the broader economy is absorbing their skills with enthusiasm.
This is not the death of tech—it’s a shift in where and how tech work happens.