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IT Employment Posts Modest Gain in July as Broader Labor Market Cools

Line graph showing IT employment (blue dots) mostly above 5M and engineering employment (purple triangles) slightly below 2.8M, both steady from May 2024 to Apr 2026.

IT Employment Posts Modest Gain in July as Broader Labor Market Cools

Alexandria, VA, Aug. 12, 2026 – As the broader U.S. labor market continued to cool in July, with employers adding fewer jobs and unemployment remaining near historically low levels, aggregate employment in IT ticked up 1,757 jobs or 0.03% month-over-month, according to TechServe Alliance, the national trade association for the IT & Engineering Staffing and Solutions Industry. On a year-over-year basis, IT employment grew 0.45%, adding 23,662 jobs. Engineering employment inched up 0.05% in July but was down 0.88% compared to the same period last year, with a net loss of 24,891 jobs.

Line graph illustrating IT employment and Engineering Employment Index from May 2024 to Mar 2026; IT employment remains higher but trends downward, while Engineering stays steady below, reflecting contrasts in job growth across the labor market.

Source: TechServe Alliance and BLS

“Against a backdrop of a cooling labor market, IT employment showed modest improvement in July, although the overall technology hiring environment remains highly selective,” said Mark Roberts, CEO of TechServe Alliance. “Organizations continue to invest in strategic technology initiatives, including AI, cloud infrastructure, cybersecurity, and data modernization, but those investments have not yet translated into broad-based workforce expansion. Employers remain focused on adding specialized talent tied to critical initiatives while maintaining discipline around the overall headcount.” 

“Insights gleaned from our members and stakeholders reflect demand that continues to vary significantly by sector, geography, and client type. While some organizations are moving forward with expanding their teams, others continue to extend decision timelines as they evaluate budgets, business priorities, and the pace of technology transformation,” Roberts added. 

Line graph titled IT Employment Index - 10 Years shows IT employment rising, sharply dropping in 2020, peaking around 2022, then declining again before stabilizing after 2024. The dotted line indicates a trend within the broader labor market and highlights significant fluctuations in job growth over the decade.

Source: TechServe Alliance and BLS

To access the interactive IT & Engineering Employment Index, please click here.

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