Employees working at a Google office in San Francisco.
The Tech Job Market's Dual Reality
The tech hiring market is experiencing a significant split: there's a flood of candidates for certain roles while stark shortages exist in others. New survey data from Indeed highlights this uneven landscape and reveals how AI is fundamentally reshaping the skills employers need most.
While many tech jobs attract an oversupply of applicants, key areas like cloud computing, data analytics, and AI development continue to suffer from a lack of qualified professionals.
"What began as a cyclical downturn in tech hiring may now be entering a new phase — one shaped by the rise of AI, increased requirements, and less demand for entry-level talent," Indeed wrote in their recent report.
The study analyzed data from Indeed and Glassdoor on tech jobs, combined with a commissioned survey of 1,035 US tech workers conducted by YouGov. Participants, primarily working in software and IT, completed an online questionnaire between late May and early June.
How AI is Reshaping Tech Jobs
Generative AI is dramatically altering career paths. The Indeed study identified which tech roles have been most affected when companies reorganize to embrace generative AI.
Top four roles most impacted by AI-driven reorganizations:
- Software engineers and developers
- Quality assurance engineers
- Product managers
- Project managers
After such reorganizations, companies typically redirect resources to new tech roles. The top three areas benefiting from this shift:
- Cybersecurity
- Data analytics/analysis
- AI teams
Critical Tech Skills in Short Supply
The most requested skills in tech job listings during the first half of 2025 include Python, SQL, and Amazon Web Services, according to Indeed data.
Indeed also examined which tech fields showed the largest increases in job listings. AI, Python, Google Cloud Platform, and continuous integration and continuous delivery (CI/CD) stood out as the fastest-growing areas.
A chart showing data from job listings.
The Rise of Tech Skill Clusters
Employers are increasingly thinking about clusters of tech skills rather than individual tools, according to the Indeed study.
Python, machine learning, and data analysis are becoming inseparable skill sets, while AWS, DevOps, and CI/CD frequently appear together in job requirements. These clusters reflect how technical professionals are expected to master capabilities across multiple technologies rather than just one language or tool.
Generative AI is accelerating this shift. Roles that once focused on traditional coding are being redefined to include prompt engineering, AI integration, and responsible AI deployment. Professionals are now expected to partner with AI tools to drive efficiency, strengthen data analysis, and enhance overall performance.
The gap between tech job postings and available talent continues to widen, leaving employers scrambling to compete for a limited pool of specialists. To bridge this gap, Indeed suggests companies sharpen recruitment campaigns around what highly sought-after candidates actually value, from career growth to cutting-edge project opportunities.
Learning new skills has become a necessity rather than a perk. Identifying employees with adjacent skill sets and providing pathways into high-demand roles is increasingly viewed as one of the few sustainable ways to keep pace with market demands.
Tech talent shortages aren't disappearing — they're shifting toward the skills that define the AI era.
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