US IT Unemployment Rates Hit 5.5% as AI Reshapes the Job Market
New research highlights a concerning trend in the US IT job market, with unemployment rates climbing to 5.5% in May 2025, surpassing the national average for the fifth consecutive month. This shift is largely attributed to economic uncertainty and the rapid adoption of AI technologies, which are increasingly replacing entry-level positions, particularly in telecommunications and support roles.
Key Findings from the Report
- Legacy skill holders in smaller markets are more vulnerable compared to forward-thinking professionals in major tech hubs.
- Roles involving large language models (LLMs), blockchain, and omnichannel commerce remain the most secure.
- Many businesses are now using AI agents for tasks traditionally handled by humans, including decision-making.
The Impact of AI on IT Jobs
Janco CEO M. Victor Janulaitis notes, "There continues to be uncertainty in the outlook for new IT job creation." While AI development roles are thriving, the broader trend suggests a shift in job requirements rather than total displacement. Workers who fail to adapt to higher-skilled roles risk being left behind.
Looking Ahead
Janco forecasts a continued decline in the IT job market for the third year in a row, with future roles likely to differ significantly from traditional IT positions. This underscores the importance of upskilling and staying ahead of technological advancements.
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