Tech Jobs Report 2025: What Jobs Are at Risk?

The tech industry, known for its breakneck speed and constant innovation, has also become notorious for its cyclical nature. Layoffs, once a rare occurrence, have become an almost expected part of the tech landscape. As we enter 2025, the question on everyone's mind is: "What jobs are at risk?"

Recruitment in the Upcoming Year Ahead

The past year has seen a wave of high-profile layoffs across major tech companies. For freelance recruiters, understanding market trends and future market dynamics can greatly affect their ability to focus talent connections and develop a proper talent network. Factors contributing to to the current tech trends include:

• Economic Uncertainty: The global economic climate is facing headwinds, with concerns around inflation and potential recession, although the impending Trump presidency has boosted the tech outlook in some sectors, especially blockchain.
• Over hiring During the Pandemic: The rapid growth experienced by many tech companies during the pandemic led to aggressive hiring, potentially creating an overinflated workforce in some sectors, which ultimately led to mass layoffs in 2023 and 2024, leaving many to wonder if 2025 will finally see a more steady job market as the post pandemic effects have finally waned. Tech industry layoffs slowed from 264,220 in 2023 to 150,034 in 2024.
• Shifting Priorities: Companies are increasingly focusing on AI, leading to a reassessment of their workforce needs as many companies continue to cut certain roles.
• AI and Big Data Advancements: Big data, AI and cybersecurity remain sought after positions, with a lack of adequate talent. 

Predicting the Future

While it's impossible to predict the future with certainty, several factors suggest that layoffs may continue to be a concern in 2025:

• Economic Slowdown: If the global economy experiences a significant slowdown, many tech companies may be forced to cut costs, including through layoffs.
• Continued AI Development: As AI technologies become more sophisticated, they may automate tasks currently performed by humans, leading to job displacement in certain sectors.
• Focus on Profitability: With investors increasingly demanding profitability, companies may prioritize cost-cutting measures, including layoffs, to improve their bottom line, especially relevant for publicly traded companies. 

What Can Talent Do?

While the threat of layoffs can be unsettling, there are steps talent can take to increase their job security:

• Develop In-Demand Skills: Focus on developing skills that are highly sought after in the tech industry, such as AI/ML, cybersecurity, and cloud computing.
• Build a Strong Network: Cultivate relationships with other professionals in your field, both within and outside your company.
• Increase Your Visibility: Actively participate in company projects and volunteer for new opportunities to showcase your skills and value. Consider joining public forums like Discord to share with like minded individuals. 
• Diversify Your Income Streams: Consider building side hustles or investing in other income-generating opportunities to provide a safety net. Freelancing and gig economies continue to be a hot trend.

The Future of Work

It's crucial to stay informed about the latest trends and technologies to remain competitive in the job market. By proactively developing new skills and adapting to the changing landscape, talent can increase their resilience and navigate the challenges that lie ahead. For recruiters, this means both effectively understanding the job market to develop a relevant talent network, while also communicating to your talent network about which jobs are trending and ways they can improve their skills, resume and communication to get the most in-demand jobs.

Are you a freelance recruiter with the relevant talent to stay on top of the current market trends? Get started with Tscout today!