The US labour market sent mixed signals in April. While overall unemployment remained steady, hiring in the technology sector slowed sharply, pushing tech unemployment higher and reinforcing signs that companies are taking a more cautious stance on workforce expansion.
Data released by the U.S. Bureau of Labor Statistics shows that tech sector companies cut a net 7,000 jobs during the month. The pullback comes even as the broader economy added jobs and avoided a rise in headline unemployment.
“Employers are no longer aggressively expanding their workforce, fewer individuals are leaving their jobs, and those who do are finding it challenging to re-enter the job market,” said Ger Doyle, US Country Manager at ManpowerGroup. “This highlights a significant shift in labour market dynamics, where churn and confidence are low.”
Job Losses Concentrated in Core Tech Segments
While some hiring continued in technology services, it was not enough to offset declines elsewhere. According to an analysis by CompTIA, job losses were most pronounced in tech manufacturing, telecommunications, and cloud infrastructure.
Across the wider economy, tech employment fell by an estimated 214,000 jobs, lifting the sector’s unemployment rate to 3.5%, up from 3.1% in March. CompTIA’s Chief Research Officer Tim Herbert described the data as disappointing but not surprising.
“It was not a great month of data, but expected given the circumstances,” Herbert said. He added that employer demand has not collapsed entirely, noting that tech job postings remain relatively resilient—a potential signal that hiring could resume once companies gain clarity on economic conditions.
A Stable Headline Masks Underlying Weakness
At the macro level, the picture looks more stable. Employers added 177,000 jobs across all sectors in April, and the overall unemployment rate held steady at 4.2%, according to the BLS.
However, uncertainty continues to weigh on hiring decisions. Economic policy risks—including international tariffs under Donald J. Trump—are contributing to a wait-and-watch approach among employers.
ManpowerGroup’s real-time data shows job openings are down 11% year-on-year, signalling a cooling labour market even as job creation continues. Doyle said many employers are prioritising retention over expansion, opting to stabilise existing teams rather than commit to new hiring.
AI Is Reshaping, Not Eliminating, Demand
Despite the slowdown, technology hiring is not disappearing—it is changing shape. According to Experis, a ManpowerGroup subsidiary, traditional software development roles are declining, but new, AI-adjacent roles are seeing explosive growth.
Experis reported a 13% month-on-month decline in traditional software developer job postings. However, Kye Mitchell, Head of Experis North America, said this does not reflect a collapse in demand for technical talent.
“Developers are evolving into strategic technology orchestrators who harness AI to drive unprecedented business value,” Mitchell said.
The shift is most visible in data-focused roles. Demand for database architects surged by an extraordinary 2,312%, while jobs for statisticians rose 382% month-on-month. Companies are increasingly focused on cleaning, structuring, and sharing data to make it usable for AI systems—a prerequisite for deploying large-scale automation and analytics.
What the Data Signals Going Forward
April’s jobs report suggests the tech labour market is entering a transition phase rather than a free fall. Hiring is slowing, unemployment is rising, and confidence is muted—but demand is being redirected rather than erased.
Employers appear cautious about adding headcount amid economic uncertainty, while simultaneously investing in skills aligned with AI, data infrastructure, and automation. For workers, this means fewer opportunities in legacy roles, but strong demand for those who can bridge technology, data, and business strategy.
The message from April’s data is clear: tech hiring is no longer about growth at any cost. It is about precision, productivity, and preparing for a labour market increasingly shaped by artificial intelligence.
