Despite a general increase in US hiring during January, the technology industry saw a reduction of over 20,000 jobs, CompTIA reported.
Artificial intelligence (AI) persists in displacing IT positions, yet emerging signs now more clearly reveal the technology’s impact on employment trends.
The US economy added approximately 130,000 jobs in January, as per data released by the US Bureau of Labor Statistics (BLS) on Wednesday. This expansion was primarily fueled by increased employment in the healthcare, social assistance, and construction industries.
However, tech-related employment experienced a drop of 20,155 positions in January, impacting both technical and non-technical roles, based on statistics gathered by the industry group CompTIA.
In January, the unemployment rate for technology positions climbed to 3.6%, with 6.6 million individuals working in these fields. The telecommunications sector faced the most significant impact, registering a 15% decrease, as reported by the BLS.
Faced with an uncertain job market, businesses are utilizing job advertisements to gauge how AI is reshaping various positions.
CompTIA reported that tech job postings increased to 465,000 in January, a 4% rise from December, with a greater number of openings for software and systems engineers and technical support staff. Additionally, there were 8,765 vacancies for AI engineers, representing an increase of 1,353 since December.
According to Bekir Atahan, vice president at Experis, January saw a 15% increase in technical role postings, including an 18% surge in opportunities for software developers.
IT job advertisements remained depressed for most of 2025, yet Experis’ data indicates January experienced a 15% surge in new technical role advertisements, with an 18% increase specifically for software developers. This change aligns with discussions Experis is having with companies resuming projects that had been paused towards the end of last year.
“A very clear indicator is the expansion of roles demanding artificial intelligence-related competencies,” Atahan stated.
In January, job advertisements requiring AI-related skills saw a surge of over 50%, with software developer roles incorporating AI skills growing even more rapidly. He noted, “Businesses are transitioning from initial exploration to hands-on deployment, generating consistent demand for versatile technologists.”
This marks a significant shift from the previous year, as AI skills are now playing a much larger role in technical positions. Atahan commented, “Companies are still emphasizing roles in areas such as cloud engineering, data architecture, cybersecurity, and product development.”
While AI is often viewed as a threat to jobs, it is simultaneously reshaping the supply and demand dynamics within the labor market, as noted by Nela Richardson, chief economist at ADP, in a recent blog post. She explained, “As artificial intelligence increasingly handles workplace tasks, our conventional perspectives on job creation and elimination will only provide a partial understanding.”
Moving forward, employers are expected to reassess job descriptions and roles. The emphasis will shift from repetitive tasks to value creation and expansion. This transformation is anticipated to influence job advertisements, educational initiatives, research priorities, and overall productivity.
Richardson termed this phenomenon “the great job unbundling.”
ADP publishes its distinct employment statistics. In January, the payroll firm reported that private sector employers added merely 22,000 jobs, a decrease from the 44,000 jobs created in December.
The BLS figures also incorporate federal, state, and local government positions, where approximately 438,000 jobs were shed, making it the sector with the largest losses.
During the recent World Economic Forum in Davos, participants expressed concerns regarding AI’s impact on white-collar and entry-level employment. Kristalina Georgieva, managing director of the International Monetary Fund, stated, “We anticipate that within the coming years, 60% of jobs in advanced economies will be influenced by AI – either improved, removed, or fundamentally changed – and 40% globally. This resembles a tidal wave impacting the job market.”
Anthropic CEO Dario Amodei explained that white-collar professionals encompass knowledge workers in fields like software, finance, research, and science. He remarked, “I believe we might be witnessing the initial signs of this trend within software and coding.”
Amodei indicated that he foresees a future where Anthropic will require fewer employees in junior and intermediate positions. He added, “We are considering how to address this situation responsibly within Anthropic.”
The most recent employment data largely suggests that this perspective is gaining wider acceptance throughout the technology industry.
