Dissecting the IT Job Market: Trends and Challenges Ahead in 2025

As we get through the summer, the resilient U.S. labor market continues to pleasantly surprise. Indeed, Job Postings Index as of June 13, 2025 was 105.82, still recovering past pre-COVID levels. Yet, in spite of this broader positive economic stability, the story on the IT jobs market is nothing short of disastrous. Employers ghosting candidates…

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Dissecting the IT Job Market: Trends and Challenges Ahead in 2025

As we get through the summer, the resilient U.S. labor market continues to pleasantly surprise. Indeed, Job Postings Index as of June 13, 2025 was 105.82, still recovering past pre-COVID levels. Yet, in spite of this broader positive economic stability, the story on the IT jobs market is nothing short of disastrous. Employers ghosting candidates is a saddening new trend on the rise. For example, unemployment-vulnerable industries are already low in job postings, forcing job seekers into a perilous cliff.

Even for those with long-standing, director-level experience, the process for landing a position is still a struggle. Numbers don’t lie Candidates have to pass 12 interviews and 5 final rounds from 784 applications. In the process, they usually end up with only 1 job offer at the end! This harsh truth highlights the cut-throat competitive job market they’re entering where every victory, large or small, can often seem out of reach.

The Impact of Ghosting on Candidates

This phenomenon is the unfortunate, but all too common, trend called ghosting that has plagued today’s job market. So, instead of being left in the dark after that first interaction. This practice results in thousands of talented candidates being treated like afterthoughts, which is disheartening and dehumanizing.

A recent study conducted by the University of Mississippi analyzed the psychological effects of ghosting compared to other rejection methods. It examined three groups: those who were ghosted, those who received generic rejections, and those who received personalized rejections.

“ghosting experience still can hurt” – Wood, Leckfor, Wicks & Hales

In the study, which included over 554 participants, researchers found the act of ghosting can have a big effect on a candidate’s mental health. Without the luxury of individualized responses, candidates told us they were left with confusion and frustration when they heard absolutely nothing after applying to a job.

Job Postings Show Sector Disparities

In looking at the IT job sector’s yin and yang, it quickly becomes clear that all industries are not doing well across the board. Although the overall labor market may seem to be holding up, certain sectors—including technology—are entering a more noticeable slump.

Scientific R&D job postings remain at an index of 70.76, which is over a 30% drop from levels prior to the onset of COVID. Job postings in software development at 65.48. This is only half of the peak amount hit in 2022, and still well below the heights of 2020.

The sectoral contraction began in earnest around the middle of 2022. This recession has dramatically impacted labour supply and demand. As discussed by campaign tech leaders, candidates must modify their plays to suit these evolving conditions.

Strategies for Success in a Competitive Market

In order to prosper despite such mounting barriers, professionals need to approach their strategies as job seekers with remarkable agility. One perhaps underappreciated recommendation is to swap out one-size-fits-all resumes for hyper-targeted resumes that are tailored to individual job descriptions. This approach increases visibility and compliance with the prevalent Applicant Tracking Systems (ATS) used by over 90% of major companies to screen resumes.

Potential candidates need to be ready to settle in for a challenging and competitive application process. Get ready to submit over 1,000 applications before you get that dream interview! Approaching every informational interview (and meeting) as practice will help build your confidence and improve how you show up for the next opportunity.

Alexis Wang Avatar