Is the Tech Job Market Still Strong? Trends and What to Expect
By
Samantha Cox
•
Jun 26, 2025
Curious whether tech is still a safe bet for your next career move? You’re not alone. With AI shaking things up, the job market is evolving fast. In this article, we’ll unpack the latest hiring trends, explore how AI is reshaping roles, and spotlight the tech jobs that are most in demand right now.
Key Takeaways
The tech job market is competitive and constantly evolving, with high demand in AI, data analytics, and cybersecurity roles, while entry-level positions are declining.
AI is reshaping jobs, creating opportunities in tech while automating certain jobs, emphasizing the need for adaptability and continuous learning.
Job seekers must focus on acquiring specialized skills, mastering soft skills, and utilizing platforms like Fonzi for a streamlined job search to enhance their chances of success.
Current Trends in the Tech Job Market
The tech job market is more competitive than ever, with thousands of applications flooding in for each open position and numerous job openings. The demand for tech jobs remains high, but the landscape is shifting. Mass layoffs are a reality, with an estimated 95,000 tech layoffs in 2024 alone. Furthermore, 45% of companies are expected to lay off employees in 2025, indicating significant restructuring within the industry.
Despite market slowdowns, Gen Z tech workers, including recent grads:
Remain optimistic and show resilience.
Face a significant decline in entry-level hiring (more than 30% in startups and over 50% in Big Tech compared to pre-pandemic levels).
Need to acquire new skills and stay updated with industry advancements to navigate the changing landscape.
Certain roles are at high risk due to AI and automation, particularly administrative assistants and low-level programming jobs. However, the advancements in AI, cloud computing, and cybersecurity are driving demand in other sectors. An estimated 39% of worker skills will become obsolete by 2030, highlighting the need for reskilling and continuous learning. The rapidly evolving tech industry demands that job seekers stay ahead of these changes.
Advancements in AI, automation, and cybersecurity are reshaping skill demands. Specialized skills are now more crucial, and job seekers must adapt to remain competitive. Learning new technologies, obtaining certifications, and gaining practical experience can significantly enhance job opportunities.
Impact of Artificial Intelligence on Tech Jobs
Artificial intelligence is a double-edged sword in the tech job market. On one hand, it’s replacing some jobs, but on the other, it’s creating new opportunities. Almost half of IT departments in large organizations are integrating AI into their operations to enhance productivity. AI enables quicker problem diagnosis and resolution, significantly increasing efficiency. It can manage and organize large volumes of data more efficiently than human workers.
AI is also revolutionizing IT security by analyzing data for anomalies that may indicate cyber threats. This has made roles like AI engineers indispensable, as they develop intelligent systems that automate complex tasks across multiple sectors. The job market is expected to be significantly reshaped by AI and automation by 2025 to 2030.
Recruiters are using AI to focus on candidates as individuals, highlighting their strengths and unique qualities. This human-centered approach makes the hiring process more personalized and effective. As AI evolves, its impact on the tech job market will grow, necessitating that tech workers remain updated and adaptable.
High-Demand Tech Roles in 2025
The tech job market in 2025 is set to witness substantial growth in roles such as AI engineering, data analytics, and cybersecurity within the tech sector and related industries as tech evolves in the future. These roles are increasingly influenced by advancements in AI and automation, reshaping job responsibilities and skill requirements.
Here are the specifics of these high-demand roles and why they are critical over the recent years and the next five years, including the open roles that are emerging in the market.
Data Scientists
Data scientists are at the forefront of the tech industry, responsible for analyzing datasets, developing predictive models, and informing decision-making. Key skills for data scientists include:
Statistical analysis
Programming (Python or R)
Data visualization
Analytical thinking
The average salary for data scientists is $122,738 per year, indicating the high value of their expertise.
The demand for data scientists is projected to grow by 36% from 2023 to 2033. They utilize advanced analytical techniques to extract insights from large data sets, which is increasingly vital for business decision-making.
With AI tools increasingly integrated into data analysis, data scientists can streamline their work, enhancing efficiency and productivity. This makes data science one of the most sought-after roles in the tech job market.
AI Engineers
AI engineers are responsible for developing and implementing AI models and algorithms, making them crucial in the age of automation. Key aspects of AI engineers include:
Proficiency in Python and R
Understanding of machine learning frameworks
Skills in data analysis
Strong problem-solving abilities
The average salary for AI engineers is $101,752 per year. The demand for AI engineers is predicted to grow by 26% from 2023 to 2033. They are essential in creating and refining machine learning algorithms that enhance automation and predictive capabilities.
As the field evolves, AI engineers must stay updated with the latest machine learning techniques and frameworks, ensuring they remain at the cutting edge of technology.
Cybersecurity Experts
The increasing frequency of cyber-attacks underscores the critical role cybersecurity professionals play in protecting organizations. Cybersecurity experts need to possess key skills such as:
Network security
Encryption
Knowledge of cryptography
Risk assessment
Security frameworks
Programming languages
The average salary for cybersecurity experts is $122,890 per year, reflecting the high demand and importance of their roles.
The demand for cybersecurity experts is predicted to grow by 33% from 2023 to 2033. The rise in cyber threats has led to a heightened demand for cybersecurity professionals, with many organizations expecting to prioritize protective measures.
Their role will expand to include a deeper understanding of AI threats, requiring adaptation of strategies for modern security challenges. This makes cybersecurity a highly rewarding and impactful field in the tech job market.
How Tech Companies are Adapting Their Hiring Processes
Tech companies are continually evolving their hiring processes to stay competitive in the job market. Hiring is becoming increasingly automated, with AI filtering applications quickly. Preparing for AI-driven assessments is essential, as many big tech companies use these tools to evaluate resumes and interview performances.
Additionally, there’s a growing focus on soft skills and AI literacy to attract top talent in 2025. Here are some key trends in hiring processes.
The Rise of Skills Tests
Many companies are integrating skills assessments to evaluate candidates more objectively and efficiently. In 2023, 73% of employers reported using some form of skills-based hiring, marking a significant increase from previous years. Implementing skills assessments allows employers to objectively measure candidates’ skills and competencies, streamlining the hiring process.
This trend ensures that the best candidates are identified based on their abilities rather than just their resumes.
Emphasis on Soft Skills
Adaptability is being recognized as a crucial attribute for success in the tech industry. A striking 88.3% of employers now prioritize soft skills and hard skills in their hiring process, a marked increase from 73.5% in the previous year. Adaptability, problem-solving, and analytical thinking are increasingly important skills in the tech industry.
This shift highlights the importance of interpersonal skills alongside technical expertise.
Importance of AI Literacy
Skills in AI and big data are expected to be among the fastest-growing competencies in demand over the next few years. IT roles are evolving, with professionals shifting towards the interpretation and strategic application of data. The ongoing integration of AI in IT requires professionals to engage in continuous learning to adapt to new technologies.
Understanding AI tools is becoming fundamental for virtually all tech positions, ensuring employees can use AI effectively in their roles.
Leveraging Fonzi for Successful Job Placement
Fonzi is a curated talent marketplace specifically designed for job-seeking artificial intelligence engineers, machine learning researchers, infrastructure engineers, and large language model specialists. Fonzi organizes a bi-monthly event called Match Day, where companies present salary-backed offers to candidates within a 48-hour window. This high-signal, efficient way to get in front of top-tier companies accelerates the hiring process.
The platform ensures a transparent hiring experience by:
Matching pre-vetted candidates with companies based on data-driven criteria.
Allowing candidates to apply just once and receive multiple job offers, simplifying the job search process.
Providing a dedicated Concierge Recruiter to assist candidates throughout their job search journey.
This personalized support helps candidates navigate the competitive job market effectively, enhancing their employment prospects in the land of competition opportunities.
Fonzi charges companies an 18% success fee only after a successful hire, eliminating upfront costs and monthly fees. This model reduces bias, protects candidate experience, and speeds up the hiring timeline. For job seekers, Fonzi offers a streamlined, efficient, and supportive job search experience, making it a valuable tool in today’s tech job market, especially for those who want to be hired.
Practical Tips for Navigating the Tech Job Market
Navigating the tech job market can be challenging, but there are several strategies job seekers can employ to improve their chances of success. Regularly practicing coding problems can enhance technical skills and familiarize candidates with common interview questions. Approaching interviews as a conversation rather than an interrogation can create a more engaging and relaxed atmosphere. This mindset helps candidates showcase their personalities and capabilities more effectively.
Learning AI, using networks, tailoring resumes, and targeting roles that align with one’s strengths are essential steps for tech job seekers. Networking can significantly improve job prospects, as many roles are filled through personal connections before being advertised. Building a strong professional network can open doors to opportunities that might not be publicly available.
A proactive approach is essential for preparing for more interviews, showcasing skills, and succeeding in a competitive AI job market. Staying updated with industry trends, obtaining relevant certifications, and continuously improving technical and soft skills can make a significant difference.
Summary
The tech job market is evolving rapidly, driven by advancements in AI, automation, and cybersecurity. While competition is fierce and layoffs are a reality, there are still promising opportunities for those who stay updated with industry trends and continuously improve their skills. High-demand roles such as data scientists, AI engineers, and cybersecurity experts are expected to see substantial growth in the coming years.
Tech companies are adapting their hiring processes to focus more on skills assessments, soft skills, and AI literacy. Platforms like Fonzi are making the job search process more efficient and transparent for candidates. By using these insights and practical tips, job seekers can navigate the competitive tech job market successfully and secure their desired positions. The future of the tech industry is bright, and with the right preparation, opportunities abound.
