The tech job market may seem bleak, but it’s not all gloom and doom! While software development job postings have seen a steep decline, certain pockets of the tech industry are thriving.

A Look at the Numbers: The Decline in Software Developer Jobs

Recent data from Indeed, the largest job aggregator in the U.S. and several other countries, paints a sobering picture. Since February 2020, Indeed has tracked active job listings, using January 2020 as a baseline (100%). Today, software development job postings are at their lowest point since mid-2020, during the pandemic.

Key Stats on Software Developer Jobs:

• Only 65% of the job vacancies from January 2020 remain—a 35% drop.
• There are 3.5 times fewer vacancies than at the mid-2022 peak.
• Job postings are 8% lower than a year ago.

Global Trends: How Do Other Countries Compare?

Indeed’s data shows that Canada mirrors the U.S., with nearly identical hiring trends. However, the situation varies across other major markets:

• The U.K., France, and Germany have all seen similar drops in software developer job postings.
• Australia stands out—the number of listed software engineering jobs has actually increased since 2020, making it an outlier in the global trend.

How Software Developer Hiring Compares to Other Industries

The drop in software job postings isn’t happening in isolation. Looking at the broader labor market provides some perspective:

Job Listing Changes (2020-2025):

• All job postings: +10%
• Banking & finance: -7%
• Sales: -8%
• Marketing: -19%
• Software development: -34%
• Hospitality & tourism: -18%

Software development has experienced the biggest boom and bust in hiring trends. In 2022, tech hiring skyrocketed like no other industry, only to crash harder than any other sector in 2024-2025.

Which Sectors Are Growing?

Not every field is struggling. Some industries have seen significant job growth compared to 2020:

• Construction: +25%
• Accounting: +24%
• Electrical engineering: +20%
• All jobs: +10%

Why Have Software Developer Job Listings Dropped?

1. Rising Interest Rates

One major culprit is the shift away from near-zero interest rates. Since 2022, higher borrowing costs have led to:

• A sharp decline in venture capital (VC) funding.
• Fewer startups launching or expanding.
• Increased pressure on tech firms to cut costs and extend runway.

2. Big Tech’s Hiring Slowdown

Surprisingly, even highly profitable Big Tech firms like Microsoft, Meta, Amazon, and Google have slowed hiring and conducted mass layoffs. This suggests that the issue goes beyond struggling startups.

3. Tech’s Tendency for Extreme Hiring Cycles

The tech industry has a unique pattern of responding to market changes with extreme intensity. No other sector:

• Hired at a faster rate during the 2022 tech frenzy.
• Cut hiring as dramatically as the tech sector in 2024-2025.

Even banking and finance—another industry that saw major hiring spikes during COVID—did not experience as sharp of a decline.

What’s Next for Tech Hiring?

While software development job listings have fallen, it’s not the end of tech hiring. Some areas, like AI, cybersecurity, and cloud computing, continue to see strong demand. As the economy stabilizes and businesses adjust to new market realities, we may see a more balanced approach to tech hiring in the coming years.

For now, adaptability is key. The tech hiring landscape is shifting, and professionals who stay ahead of trends will be best positioned for success.

Tamarack Recruiting is a boutique recruiting firm with the capability to meet your critical hiring needs. Let us connect you with the talent and tools you need to thrive.