Tech Industry Job Forecast

What’s Really Happening in the Tech Job Market — And What to Expect in Q4 2025 & Q1 2026 As we head into the final stretch of 2025, the tech job market is showing a mix of stabilization, selective expansion, and continued recalibration. After two years of volatility, we’re finally seeing clearer signals about where hiring is headed — and what candidates and companies should expect in the months ahead. Over the last two quarters, companies have shifted from broad hiring freezes to targeted, high-impact recruiting. AI-driven roles continue to dominate demand — not just for researchers and engineers, but for applied AI talent, product builders, data/ML specialists, and operators who can turn AI capabilities into revenue. At the same time, sales, customer success, and GTM roles have started to rebound as companies push harder toward monetization and efficiency. In Q4 2025, expect hiring to remain purposeful rather than expansive. Companies are prioritizing candidates who can deliver measurable outcomes quickly. “Lean but strong” teams are the norm, and employers are moving faster on top-tier profiles while still maintaining a high bar. Looking ahead to Q1 2026, hiring momentum is likely to accelerate. Many organizations that postponed headcount in 2025 are planning to open roles tied to growth initiatives, new product launches, and AI integration efforts. We’re already seeing early signs: more inbound searches, increased recruiter activity, and companies refreshing their talent pipelines ahead of the new fiscal year. For candidates, the advantage goes to those who can clearly articulate impact, adaptability, and experience with AI-related workflows — regardless of role. For companies, competition for top talent will tighten again, especially in AI, infra, security, and senior-level product and engineering leadership. The market is no longer chaotic — it’s becoming strategic. And those who prepare now will be the ones who win early next year.

22,042 tech layoffs and accelerated hiring. At the same time. This isn't contradiction – it's strategic realignment driven by AI adoption. 📊 Carta's latest research on startup compensation & hiring tells an interesting story about which functions are thriving vs. shrinking: - 📈 Sales roles now account for 19.9% of all new hires (up from 14.8% in 2020), making it the second most common function behind engineering - 🤖 Approximately 50% of tech leaders anticipate both layoffs AND hiring in the next 6 months specifically due to AI adoption (Ernst & Young survey) - 📉 Involuntary departures down 35% from 2023 to 2024, but remain more than twice as high as pre-2022 levels - 🏠 For startups valued between $25-50M, in-state hiring increased from 37% in 2022 to 49% in 2024 What's fascinating is the AI-driven bifurcation of the tech workforce: While 22,042 tech employees have been laid off across numerous companies in early 2025, many organizations are simultaneously accelerating hiring in AI-specific roles. Meta, for example, is cutting about 5% of staff while noticeably ramping up machine learning engineer hiring. Similarly, Salesforce eliminated about 1,000 roles while actively recruiting for AI-focused positions. This isn't just cost-cutting – it's a strategic reallocation driven by AI's impact on productivity: - 🧠 Companies are eliminating roles made redundant by AI tools while adding positions for AI specialists and data engineers - 💼 Customer-facing functions like sales continue to grow, suggesting these human-centered roles remain harder to automate - 📱 Roles in artificial intelligence and cybersecurity show demand outpacing supply despite the broader downsizing trend For tech executives, the message is clear: AI adoption is creating "continuous cycles of strategic workforce realignment" as organizations determine which functions benefit most from human talent versus automation.

2026 hiring has slowed down but not equally. 🏇 🐇 🐢 👉 Some sectors continue to add jobs, while others are oversupplied with talent and seeing very few new approvals. Here is what the data actually shows. ⤵️ 🔻 Healthcare remains the strongest area of hiring. According to the US Bureau of Labor Statistics, healthcare accounted for the majority of net job growth through 2025 and continues to face structural shortages tied to an aging population and burnout driven attrition. Even when monthly numbers dip, demand has not gone away. It is being delayed, not eliminated. 🔻Skilled trades, logistics, utilities, and parts of manufacturing are also holding steady. JOLTS data shows consistent job openings in trade, transportation, warehousing, and utilities. These roles are harder to automate or offshore and are tied directly to physical operations, which keeps demand more resilient even in a cautious economy. 🔻Technology hiring is not dead, but it is narrow. CompTIA and Indeed Hiring Lab both show that overall tech employment is expected to grow modestly in 2026, but nearly all net new demand is concentrated in specific roles. AI engineering, cybersecurity, cloud infrastructure, and data engineering continue to receive hiring approval. General software engineering, product, and technical program roles remain far more competitive with fewer openings than candidates. 🔻White collar corporate roles are the hardest hit. Professional services, media, marketing, recruiting, and general operations have seen persistent declines in job postings. BLS and JOLTS data show professional and business services leading declines in job openings through late 2025 into early 2026. This is where the candidate surplus is most visible and where application volume is highest relative to actual hiring. 🔻Entry level professional roles are especially constrained. When senior employees are not quitting and companies are reducing training investment, early career hiring is often the first thing paused. This is why many early career candidates feel locked out while unemployment headlines still look stable. 👉 The takeaway is uncomfortable but important. This is not a market where effort alone wins. It is a market where alignment matters more than ever. Knowing where demand still exists can help you - as a job seeker - redirect energy away from oversaturated paths and toward roles where hiring approval still happens, even slowly.

The technology jobs market in 2026 is essentially two speeds now. Fast lane: Cloud Infra, GPU's, Security, SRE, Platforms, Data, AI/ML Tooling 🚀 Companies are genuinely competing for talent, with salaries going up for niche/specialised skills... Slower Demand: Generalist Software Engineering Java, .NET, Typescript, QA/Testing, People Leadership 🤞 Lots of great people are available, but slower processes, higher volumes of applicants to screen (agency or internal), more rigour around "the right fit" etc If you're wondering why it's taking longer than expected - it's not you. The market has genuinely bifurcated. Positioning matters more than it ever has. Skilling up, building Github side projects, tinkering with new tech will now help get you noticed. You just need to know what moves you between the two lanes. #SydneyJobs #MelbourneJobs #BrisbaneJobs #AustralianTech #TechMarket #JobsMarket #HiringDemands #AITools #SoftwareEngineering #CloudEngineering #GPU

The “Future of Jobs Report 2025” is out and here are the top 9 points from it: 1. Tech-Driven Transformation • 85 million jobs globally could be displaced by automation and AI by 2025. • 97 million new roles (e.g., data scientists, AI specialists) are expected to emerge. • 80% of surveyed companies plan to accelerate digital processes post-pandemic. 2. Job Creation vs. Job Displacement • Administrative/Clerical (data entry, payroll) and Basic Customer Service roles face the highest automation risk. • Routine Production jobs (assembly line, material handling) will decline due to robotics and IoT. • Non-routine, high-skill roles—particularly in technology and innovation—will see net growth. 3. Shifting Skill Demand • 50% of all employees will need some form of reskilling by 2025. • 44% of the core skills for current roles will shift within five years. • Critical thinking, problem-solving, and creativity are in highest demand among “human” skills. 4. Emerging (and Often Unfamiliar) Roles • AI Trainers/Data Labelers: Teach AI models to recognize images, text, or voice data. • Algorithm Bias Auditors/AI Ethics Officers: Audit algorithms to ensure fairness and transparency. • Digital Twin Engineers: Build real-time virtual replicas of products or manufacturing processes. 5. COVID-19’s Lasting Impact • 84% of employers surveyed adopted or plan to adopt remote/hybrid work models. • E-commerce increased by 15–30% across major markets during the pandemic. • 43% of businesses intend to reduce staff due to further automation and cost pressures. 6. Education and Training Overhaul • 65% of children entering primary school today may work in job types not yet invented. • Strategic upskilling could add $6.5 trillion to global GDP by 2030. • Micro-credentials, short courses, and public-private partnerships are vital to closing skill gaps. 7. Inclusivity and Well-Being • 55% of employers are revising mental health and wellness policies. • Women hold fewer than 20% of jobs in high-growth STEM fields, highlighting a persistent gender gap. • Emphasis on equity: workers in disadvantaged areas are more vulnerable to skill disruption. 8. Geographic Trends • Developed economies integrate new tech faster; up to 36% of core business processes could be automated within five years. • Emerging markets in Asia and Africa may add 30% more mobile-based employment opportunities. • 60% of surveyed businesses in low-income regions cite digital infrastructure gaps as a major hurdle. 9. The Path Forward • Proactive reskilling can cut potential workforce displacement by 50% or more. • 74% of companies plan to keep flexible or hybrid work models beyond the pandemic phase. • Balancing productivity gains with social safety nets remains critical for inclusive and sustainable growth.