Tech jobs decline as US hit with rising costs and economic instability

09/10 20:15 - Tech jobs decline as US hit with rising costs and economic instability
A number of studies reported a decline in tech jobs in September as the US continues to get squeezed by geopolitical and economic instability. Tech consortium CompTIA said 10,350 positions in the technology sector were lost in September, lower than the 14,700 positions cut in August. But economy-wide, tech jobs — which include IT roles not associated with tech sector — took a bigger hit. Tech jobs across all industries fell by about 6,000, a sharp reversal from the 86,000 added in August. CompTIA’s report is based on an analysis of the US Bureau of Labor Statistics’ September jobs report, which found that only 29,000 nonfarm jobs were added in the US in September, lower than expectations. The US added 133,000 jobs in August. Tech worker unemployment ticked up to 3.3%, but that was below the 4.2% national rate, according to CompTIA. The strong August numbers raised hopes that tech jobs were stabilizing, but September’s numbers dashed that hope. Separately, tech companies announced 10,799 job cuts in September, a 77% rise from the 6,103 announced in August, according to numbers from Challenger, Gray & Christmas. The tech sector has cut 165,925 jobs this year, up 54% compared to the same period in 2025. US employers cut 43,281 jobs across all sectors in September, compared to 52,881 in August. Employers are taking a wait-and-see approach in hiring due to rising costs and political uncertainty, despite fewer jobs getting cut compared to August, said Andy Challenger, chief revenue officer at Challenger, Gray & Christmas. “Employers are facing high energy costs, an uncertain war in Iran, a rate hike that could make hiring more expensive, plus the likelihood of surging healthcare costs,” Challenger said. Amid the uncertain environment, employers are hiring cautiously, as jobs are tied directly to strategic business priorities, said Ger Doyle, ManpowerGroup’s regional president in North America. “The market is no longer defined simply by how many people employers hire, but by how precisely they hire,” Doyle said. Earlier this year, AI was often cited as a main reason for job losses. But that wasn’t the case in September. AI was cited for only 3,961 of the 43,281 job cuts, or about 9% of the month’s total, Challenger, Gray & Christmas said. Overall, AI was cited for 120,136 job cuts so far in 2026, which is 21% of all cuts. Even as tech jobs decreased overall, CompTIA noted, Lightcast job posting data showed that US employers posted 272,040 new IT job openings in September, an increase of 16% from September 2025. That mismatch indicates a search for specific skills. ManpowerGroup said AI skills are the most in demand. “The roles that matter most also take the longest to fill,” Doyle said. Job postings typically stay open for 61 days, while filling engineer roles typically takes 77 days, Doyle said. Active job postings requiring AI-related skills totaled 349,821 in September, an increase of 32,327 postings from August, CompTIA said. ...