WorkThe story, in brief

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

165,925 tech jobs cut this year. But the real story: AI caused only 9% of September's layoffs. Employers are hiring differently, not less.

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People, judgement and the changing nature of work.AI illustration by KeyNews
The KeyNews take

Why it matters

Tech workforce is contracting amid economic uncertainty, but AI is no longer the primary driver of job losses. Instead, employers are shifting hiring toward specific skill sets—particularly AI expertise—creating a paradoxical market: fewer jobs posted overall, but 349,821 active postings requiring AI skills, a 32,327-post jump from August. The mismatch signals a profession in transition, not collapse.

The key facts

19 to know
  1. 10,350 tech sector positions lost in September (vs 14,700 in August)

  2. Tech jobs across all industries fell 6,000 in September (vs +86,000 in August)

  3. 10,799 tech job cuts announced in September (77% rise from 6,103 in August)

  4. 165,925 tech jobs cut year-to-date 2026 (54% increase vs same period 2025)

  5. AI cited for only 3,961 of 43,281 job cuts in September (9%)

  6. AI responsible for 120,136 cuts year-to-date 2026 (21% of all cuts)

  7. 272,040 new IT job openings posted in September (16% increase vs September 2025)

  8. 349,821 active job postings requiring AI skills in September (+32,327 from August)

  9. Tech worker unemployment: 3.3% (vs 4.2% national rate)

  10. Average time to fill engineer roles: 77 days

  11. Average job posting duration: 61 days

  12. Employers citing hiring caution due to energy costs, geopolitical uncertainty, rate hikes, healthcare cost pressure

  13. 10,350 tech-sector positions lost in September (CompTIA); 6,000 decline in tech jobs economy-wide

  14. 272,040 new IT job openings posted in September (16% YoY increase); 349,821 active postings requiring AI skills (32,327 increase from August)

  15. AI cited for 3,961 of 43,281 total job cuts in September (9%); 120,136 YTD (21% of all cuts)

  16. 165,925 tech jobs cut YTD 2026 (54% increase vs same period 2025)

  17. Engineer roles take 77 days to fill (vs 61-day average for all roles); ManpowerGroup: AI skills most in demand

  18. 10,799 tech job cuts announced in September (77% rise from August's 6,103)

  19. Employers citing 'high energy costs, uncertain war in Iran, rate hike risk, surging healthcare costs' for cautious hiring

Go to the source

Computerworldcomputerworld.com

Publisher excerpt: 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…
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