US tech jobs are on the slide as AI snaffles entry-level jobs

• US IT unemployment rates now stand at 5.5%, report claims
• Bosses could soon have to manage AI agents as well as humans
• Roles involving LLMs, blockchain and omnichannel models are most secure

Driven by widespread economic uncertainty and influenced by rapid AI adoption, new research has claimed the US IT job market could be declining.

Figures Janco highlighted a 5.5% unemployment rate among IT professionals in May 2025, compared with 4.6%, bringing unemployment within the sector above the national average for the fifth month in a row.

The report also highlights both regional shifts and the modernization of the IT sector, with legacy skill holders in smaller markets more likely to be affected than forward-thinking workers in major tech hubs.

IT jobs market is still seeing higher-than-average unemployment

Janco found many losses were concentrated in telecommunications, and other roles relating to reporting, monitoring and support. On the flip side, roles involve large language models, blockchain and omnichannel commerce looked to be the most secure.

"There continues to be uncertainty in the outlook for new IT job creation. For five consecutive months, the IT Unemployment rate has been greater than the national unemployment rate," Janco CEO M. Victor Janulaitis said.

Although roles relating to AI development are among the most secure, the figures suggest that AI could be replacing many entry-level IT jobs, particularly within the telecommunications sector.

The trend suggests a shift, rather than total worker displacement, however workers who fail to adapt to higher-skilled roles could risk being left behind.

Many businesses now report using AI agents to handle workflow tasks traditionally done by humans, including decision-making.

Looking ahead, Janco forecasts a continued IT job market decline for the third year in a row, with future roles potentially looking significantly different to traditional IT sector roles.

You might also like

• Worried about the news? These are the best job sites and best recruitment platforms
• AI jobs are among the fastest-growing in the UK
• Upskill with the best online learning platforms