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U.S. Tech Employment Slid Again in November 2025 as Payroll Growth Stalled

By TheFinanceBase Team6 min read

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U.S. employers added just 64,000 jobs in November 2025, and the unemployment rate rose to 4.6%. Technology employment weakened more sharply in several measured categories: telecommunications lost about 600 jobs and computer systems design and related services lost about 3,200. The figures point to a cautious, uneven labor market—not proof that technology jobs as a whole are disappearing or that artificial intelligence alone caused the decline.

November’s report showed a weak overall job market

The Bureau of Labor Statistics (BLS) reported a 64,000 increase in nonfarm payrolls in November 2025, while unemployment rose to 4.6%. The agency said total employment had changed little since April. Health care added 46,000 jobs, construction added 28,000, and social assistance also grew. Information, professional and business services, manufacturing, retail, leisure and hospitality, and financial activities changed little; transportation and warehousing declined. Average hourly earnings were 3.5% higher than a year earlier.

The report was released late because of the federal government shutdown, which disrupted the normal October reporting schedule. October data were released with November’s, so this was not an ordinary monthly update. BLS estimates can also be revised. Read the November 2025 Employment Situation report with those qualifications in mind.

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Some measured technology industries lost jobs

“Tech” is not a single BLS industry category. Among the categories reported from BLS data, telecommunications employment fell by about 600 in November, to approximately 598,800. That was about 15,700 fewer jobs than in November 2024, a decline of roughly 2.6%.

Computer systems design and related services—which includes activities such as programming, systems integration and technical support—fell by about 3,200 jobs in November, to approximately 2.403 million. The category was down roughly 41,500 jobs, or 1.7%, from a year earlier. These figures were reported by Computerworld using BLS industry data.

Those categories do not account for every technology company or every person who does technology work. A software engineer employed by a bank, hospital or retailer is generally classified under the employer’s industry, not as a job in a technology industry. Conversely, an industry count includes workers in many roles, not only technical occupations.

Why different reports give different tech-job totals

Employment figures can describe different things, so they should not be combined as if they were one count:

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  • Industry payrolls: BLS establishment data classify jobs by the employer’s main industry. The telecommunications and computer systems design figures above are industry measures.
  • Technology occupations: CompTIA estimated that technology occupations across all industries declined by 134,000 workers in November. That estimate covers people doing technology work beyond technology companies and is not the same as a BLS count of tech-industry jobs.
  • Technology-company employment: CompTIA separately estimated that technology companies lost 6,878 jobs. This is its analysis of employment at those companies, not the 134,000 occupational estimate.
  • Layoff announcements: Announced reductions are planned cuts, not a count of net jobs lost in that month. Other employers may hire, and announced cuts may take effect later.
  • Job postings: Postings indicate advertised demand, not completed hires or employment growth.

These distinctions explain why estimates can differ without necessarily contradicting one another. They also matter to workers: a technology occupation may be weakening overall while particular skills or industries continue to recruit.

AI is a factor, but not a complete explanation

AI is part of the restructuring story, but the available figures do not show that it caused the whole decline. Challenger, Gray & Christmas attributed 31,039 announced job cuts to AI across technology and nontechnology employers, compared with 50,437 attributed to cost cutting, according to the figures reported by Computerworld. Those are stated reasons for announced cuts, not an independently measured accounting of which jobs automation eliminated.

Several forces may be operating at once: companies correcting for earlier overhiring, managing costs amid cautious spending, automating some routine work, and redirecting investment toward AI and related infrastructure. Employers may reduce generalist hiring while seeking narrower expertise in AI, data, cybersecurity or cloud systems. They may also hold off on hiring because they expect existing teams to become more productive with AI tools.

Even where an employer cites AI, a layoff can reflect a broader reorganization or budget choice rather than direct substitution of a tool for each affected worker. A defensible reading is that AI may be accelerating changes in the mix of work and skills, alongside cost pressures and a low-hiring environment; the cited data do not isolate AI’s causal contribution to November’s employment change.

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Demand signals favor specific skills, but postings are not jobs

Experis reported that AI-related job postings were up 5% from the comparable period in 2024. It also reported increases of 219% for data-scientist postings, 507% for database-architect postings and 349% for computer-network-support-specialist postings. These are posting-growth estimates, not official employment statistics. Large percentage increases may also reflect a small starting base, and an advertised role may not be filled or become permanent.

Taken cautiously, the pattern suggests that some employers are looking for capability in AI and machine learning, data engineering and architecture, cybersecurity, cloud and infrastructure, networking, and systems reliability. Skills connected to revenue, risk reduction or operational efficiency may be easier for employers to justify when hiring budgets are tight. That does not mean every worker needs to change specialties: domain knowledge and broad technical ability can remain useful when paired with a demonstrable strength in security, data, infrastructure or automation.

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What the numbers mean for workers and employers

For job seekers, a tighter market makes evidence of applied skill more important. A course or certification may help structure learning, but it cannot guarantee a job or replace relevant experience. Candidates can strengthen their case by showing practical work—such as a deployed system, a data project, a security exercise or an automation workflow—and explaining its business or operational value. Target requirements in actual local postings rather than assuming that a headline about demand applies equally to every role or region.

Experienced generalists need not assume their work has no future. The more practical question is where their skills meet an employer’s immediate needs: maintaining and securing systems, integrating platforms, improving data quality, supporting customers, or helping teams use automation responsibly. Specialized roles can be resilient, but they may require deeper experience and attract a narrower pool of openings.

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Employers face a related trade-off. Cutting staff can reduce near-term costs but may leave gaps in maintenance, support, integration and security. AI productivity gains also depend on reliable data, governance, infrastructure and experienced people who can evaluate outputs and keep systems working. Redirecting investment toward AI does not eliminate those supporting needs.

Early-2026 outlook: a forecast, not a result

Janco Associates forecast continued contraction in the U.S. IT-professional job market through the first quarter of 2026. It said IT-professional hiring rose from 94,000 in September to 95,000 in October, an increase it considered insufficient to offset losses elsewhere. That is an analyst’s forecast and measure, not a BLS payroll result; it should not be treated as proof of what happened in November or as a guarantee of what followed.

The broader November picture also argues against describing this as an isolated tech collapse. Health care and construction added jobs even as many industries were little changed, and average earnings continued to rise. The data fit a selective-growth, low-momentum market in which opportunities vary considerably by sector and skill—not a formal finding that the U.S. economy or the technology industry was in recession. BLS job-openings, hires and separations data provide a separate view of labor-market movement; payroll totals, openings and layoff announcements measure different things (BLS JOLTS).

How to read the next tech-employment headline

Check what the number actually counts before drawing conclusions. Is it jobs at technology companies, employment in a particular industry, technology occupations across all industries, announced cuts, or postings? Then check the period, whether the figure is an estimate, and whether it measures a change in employment or demand for workers. For November 2025, the clearest conclusion is narrower than “AI took tech jobs”: overall hiring was weak, several technology industries continued to shrink, and demand signals were uneven as employers reconsidered costs, staffing and skills.

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Written by TheFinanceBase Team

The Team behind TheFinanceBase.

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