2025 Tech and IT Job Market Outlook

As organizations push forward with digital transformation initiatives, tech hiring remains a top focus, particularly for roles supporting AI integration, cybersecurity, cloud computing and data infrastructure. For many companies, launching new projects or restarting deferred projects is a primary driver for expanding their tech or IT teams in the months ahead. 

But hiring challenges persist—and are jeopardizing the success of critical initiatives in some cases. Specialized roles are especially tough to staff, and tighter budgets mean many teams are running lean. To address critical skills gaps and keep priorities on track, Robert Half’s research shows that more tech leaders are augmenting their core teams with highly skilled contact talent and stepping up efforts to upskill employees.

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Technology leaders report it takes 5 weeks on average to hire for permanent roles.   

Robert Half’s research also suggests many firms are receiving a high volume of applications, making it harder to identify candidates with the requisite skills. 

of leaders said evaluating applications and determining who to interview are their greatest hiring challenges.  of leaders said evaluating applications and determining who to interview are their greatest hiring challenges. 

Hiring for strategic priorities: contract and permanent staff

Technology leaders shared the top strategic initiatives for which they will hire more staff through the end of the year. 

AI governance

Automation initiatives 

Cloud initiatives

Security of IT systems and information

AI and machine learning initiatives

Technology modernization

Key skills for tackling technical debt

Left unchecked, technical debt can drain resources and impede progress on digital transformation across an organization. When hiring talent to address cross-departmental technical debt, tech leaders are prioritizing candidates with: 

Strategic vision to modernize systems and map complex workflows

Strong business analysis skills to translate technical concepts and build consensus across departments

Proven track record developing scalable frameworks for sustainable system transformation

Report: Discover insights and tips for building a future-forward tech team 

76% of technology leaders reported skills gaps within their department, and 69% of those leaders said the impact of those gaps has increased in the past year. 

In response, many companies consider a combination of options for addressing these gaps: engaging contract talent for a specific project or short-term support, seeking permanent hires with specialized experience, and upskilling employees.

AI, machine
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Most tech and IT leaders plan to add new staff or at least maintain headcount in the second half of 2025 to support top business priorities. Yet 89% said it’s challenging to find the talent they need in the current job market.

of tech and IT leaders are hiring for new permanent positions. of tech and IT leaders are hiring for new permanent positions.

are hiring only for vacated permanent positions. are hiring only for vacated permanent positions.

Hiring plans: contract roles 

65% of tech leaders said they’re increasing their use of contract talent in the second half of 2025. They also shared what they view as the greatest value in engaging these professionals.

Access to specialized skills or experience

Flexibility in scaling workforce

Faster time to staff critical roles

Cost savings compared with hiring permanent employees

Technology professionals in highest demand

The following positions are in the top 15% of in-demand technology roles, according to an analysis of thousands of job postings and Robert Half placements:

AI/machine learning engineer

Data analyst - technology 

Network/cloud engineer

Network security engineer 

Software engineer/developer

Systems administrator

Article: Learn more about the top roles in demand

Make sense of shifting job market dynamics

Our Labor Market Overview connects the dots between U.S. Bureau of Labor Statistics data, job postings and hiring trends, giving you a clearer view of employment shifts, workforce turnover and where opportunities are growing.

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The survey cited was developed by Robert Half and conducted by an independent research firm. Results may not total 100% due to rounding or allowing for multiple responses. Respondents included executives and hiring managers from small (10-99 employees), midsize (100-999 employees) and large (1,000+ employees) businesses in private, publicly listed and public sector organizations across the U.S.

Over 4 million new positions from more than 8,000 independent job boards and company websites are represented in this report, including 340,000-plus placements from Robert Half. Positions are categorized into more than 450 job titles within Robert Half’s Salary Guide using a proprietary mapping methodology that employs state-of-the-art large language models. This dataset includes roles across the finance and accounting, technology, marketing and creative, legal, administrative and customer support, healthcare support, and human resources professions. 