More openings, more unemployment
It doesn’t seem logical at first—tech unemployment jumps while job postings increase. But when you dig in, it makes sense. The unemployment rate for tech workers climbed from 2.0% to 2.9% between December and January. At the same time, companies added a net 6,787 new positions. If the industry is hiring, why are more tech professionals without jobs?
One factor: delayed job-seeking behavior. Many workers who paused their job search during the holiday season became active again in January. The Bureau of Labor Statistics (BLS) doesn’t count people as unemployed unless they are actively looking for work, which means these individuals weren’t included in December’s numbers but reappeared in January’s data.
Now, here’s the bigger picture. Despite this jump, tech unemployment is still well below the national average of 4.0%. The demand for skilled tech workers remains strong, but there’s friction. Some companies are moving slower to hire, others are recalibrating talent needs, and certain skill sets are more in demand than others.
AI jobs are expanding, but they haven’t taken over—yet
AI is hot, but it’s not the entire job market. In January, AI-related job postings increased by 1,500, bringing the total to around 40,000 active listings. That sounds impressive, but AI still represents just 8.4% of total tech job postings.
Companies aren’t only chasing after AI engineers. They also need cloud specialists, cybersecurity experts, network architects, and software developers to build and maintain the infrastructure AI runs on.
Tim Herbert, CompTIA’s chief research officer, put it well: businesses are balancing foundational tech talent with next-gen skills. The market isn’t shifting overnight and is evolving gradually.
“AI-related jobs are growing, but the bigger demand remains in core tech fields. That’s where companies are putting their money.”
The end of the four-year degree requirement? Maybe.
Tech hiring is breaking away from the traditional college degree model. In January, 45% of tech job listings didn’t require a four-year degree. Some roles were even more flexible:
- 83% of network support specialist jobs didn’t require a degree.
- 71% of tech support roles were open to non-degree candidates.
- 57% of programming jobs skipped the degree requirement.
- Web development, system administration, and other fields showed similar trends.
This shift isn’t surprising—real skills matter more than a diploma. A computer science degree can give you strong fundamentals, but in a fast-moving industry, experience and adaptability are far more valuable. Companies are realizing they don’t need someone with a formal education in algorithms when what they really need is someone who can ship code, solve problems, and keep systems running.
Degrees still hold value, but they’re not the golden ticket. The real advantage comes from learning, adapting, and staying ahead of tech trends. If you can prove you have the skills, many employers won’t care about the paper. They just want results.
AI is changing the game—and companies need leaders to keep up
AI is bringing with it a fundamental shift. And like any major shift, it needs strong leadership. That’s exactly what we’re seeing in hiring trends. Executive management roles in tech grew by 16% from December, and project management specialist roles surged by an incredible 587% compared to last year.
Why? Because AI isn’t concerned with building smarter software, but rather on integrating it effectively into business operations. Companies need executives who understand both the technology and the strategy. It’s one thing to build AI models; it’s another to make them work at scale, align them with business goals, and make sure they’re used responsibly.
Kye Mitchell, head of tech recruitment at Experis North America, summed it up well: we’re moving from the “wow” phase of AI to the “how” phase. Businesses now realize AI can’t just sit in an R&D lab and that it has to drive real outcomes. That means bringing in experienced leaders who can manage large-scale implementations, handle regulatory concerns, and turn AI into a business advantage.
From career ladder to career web
The old tech career model was simple: junior developer → senior developer → lead engineer → architect. It was a straight climb. That’s no longer the case. Today, the most successful professionals aren’t following a linear path—they’re moving across disciplines, picking up business skills, and playing a role in strategy, not just execution.
Think about it this way: a cloud engineer today isn’t just managing infrastructure—they’re influencing data governance, sustainability, and cost efficiency. An AI developer isn’t just building models—they’re working with legal, compliance, and ethics teams to make sure AI is used responsibly. The most in-demand professionals are those who bridge the gap between tech and business.
Mitchell called it a “career web”—a model where success comes from adaptability, cross-functional skills, and an understanding of the bigger picture. Instead of climbing a rigid ladder, top talent is moving sideways, gaining new skills, and positioning themselves at the intersection of technology, business, and strategy.
For companies, this means hiring people with a mix of deep technical expertise and broad business awareness. For professionals, it means learning beyond just coding and building an understanding how tech impacts the business world and where you can make the biggest impact.
The three skills every tech leader needs now
Tech is changing, and so are the skills that matter most. It’s not enough to be great at writing code or configuring systems anymore. The best tech professionals today have a three-part skill set that combines AI knowledge, business acumen, and human-centric leadership.
- AI integration & technical foundation:
- AI isn’t replacing jobs, but it is changing them. Knowing how to integrate AI into existing systems and workflows is key.
- Staying up to date with large language models (LLMs), automation tools, and AI-powered analytics gives professionals an edge.
- Business & strategic thinking:
- Tech investments need to make business sense. Understanding financial impact, competitive positioning, and industry trends is critical.
- Executives want tech leaders who think strategically, aligning technology with long-term goals.
- Human-centric leadership & ethical tech:
- AI and automation bring ethical challenges—privacy, bias, security. Tech leaders must be able to navigate these issues.
- The ability to lead cross-functional teams, communicate effectively, and manage stakeholders has become just as important as technical expertise.
Mitchell put it best: “Human-centric capabilities have moved from ‘nice-to-have’ to vital.” Companies need leaders who can think big, execute fast, and manage people effectively. The best tech professionals understand the “how” and the “why” behind their work.
Key executive takeaways
- Tech unemployment is rising despite more job openings: The tech unemployment rate increased from 2.0% to 2.9% in January, even as companies added 6,787 net new positions. Seasonal job search patterns and skill mismatches may be contributing factors.
- AI jobs are growing but haven’t displaced core tech roles: AI-related job postings rose to 40,000, making up 8.4% of total tech listings. However, demand for traditional tech roles remains dominant, signaling the need for a balanced workforce strategy.
- Degree requirements are declining in favor of skills-based hiring: Nearly half of tech job postings no longer require a four-year degree, with roles in network support, programming, and digital design leading the shift. Companies should focus on skills-based assessments to widen the talent pool.
- Leadership and project management demand is surging: Executive management roles grew by 16% from December, and project management positions soared by 587% year-over-year. Companies investing in AI integration must prioritize leadership development to drive execution and strategy.
