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Overall IT Employment Remains Flat Despite Increased Investment in AI Initiatives

Line graph showing IT Employment Index (blue dots) and Engineering Employment Index (purple triangles) from Mar 2024 to May 2025. Both indices remain mostly stable, with IT above 5M and Engineering around 2.8M.

Overall IT Employment Remains Flat Despite Increased Investment in AI Initiatives

Alexandria, VA, June 10, 2026 – While the broader U.S. labor market continued to expand in May, adding 172,000 jobs and holding unemployment steady at 4.3%, aggregate employment in IT remained essentially flat, ticking down 210 jobs 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 0.57%, adding 29,579 jobs. Engineering employment declined 0.03% in May and down 1.1% compared to the same period last year, with a net loss of 30,526 jobs. 

Line graph showing IT Employment Index (blue dots) and Engineering Employment Index (purple triangles) from Mar 2024 to May 2025. Both indices remain mostly stable, with IT above 5M and Engineering around 2.8M.

Source: TechServe Alliance and BLS 

“While overall U.S. IT employment remained flat, the aggregated national IT jobs number masks a real divide. While hiring for many technology roles remains measured as firms prioritize critical initiatives and maintain tight control over headcount with some companies even undertaking targeted layoffs, there is increasing investment in areas such as data modernization, cloud infrastructure, cybersecurity, and AI-enabled transformation,” observed Mark Roberts, CEO of TechServe Alliance. 

“While some employers have increased their hiring activity over the same period last year, companies continue to maintain elongated decision timelines and prioritize investment in AI infrastructure and tools over broad-based workforce expansion. As a result, demand for specialized technology talent that supports the build-out of AI initiatives is expanding, but without meaningful growth in overall IT employment,” Roberts added. 

Line graph titled IT Employment Index - 10 Years shows IT employment fluctuating from 2016 to 2026, with dips in 2020 and 2024 and peaks near 2022. A dotted line highlights the notable 5.3M employment level.

Source: TechServe Alliance and BLS

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

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