AI Workforce

The Tech Drought

101K — down from 106K a year ago, down 53% from the 2022 peak

What is the current The Tech Drought?

INFORMATION SECTOR JOB OPENINGS (NAICS 51)
101K ↓ Worsening
101k tech sector job openings
One year ago
106K ↓ Worsening
down 5K since Dec 2024

Tech sector job openings track the number of available positions in software, IT, and technology — a leading indicator of broader labor market health since tech hiring often contracts before wider economic weakness becomes apparent. Declining tech openings signal reduced demand for the workforce segment most directly affected by both AI displacement and economic slowdowns. Source: BLS JOLTS / Indeed.

101k tech sector job openings — down from 218k peak in 2022

JOLTS job openings for Information sector (NAICS 51), covering tech, media, and telecommunications.

Source: Bureau of Labor Statistics, JOLTS · Latest: 2025-12
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📊 Unemployment & Job Market Statistics 2026 → 📖 What Is Labor Force Participation Rate? → 📖 What Is Recession? →

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How has The Tech Drought changed over time?

CSV Chart Card
The Tech Drought over time
The Tech Drought, thousands
The Tech Drought
Data: Bureau of Labor Statistics, JOLTS Updated Feb 2026
Historical data
Monthly · Bureau of Labor Statistics, JOLTS
Period Value YoY Change
Dec 2025 101K −5K
Nov 2025 89K −33K
Oct 2025 124K −64K
Sep 2025 203K +82K
Aug 2025 172K +37K
Jul 2025 180K +65K
Jun 2025 189K +74K
May 2025 177K —
Apr 2025 165K —
Mar 2025 154K —
Feb 2025 131K —
Jan 2025 130K —

Frequently Asked Questions

Why are tech job openings a leading indicator?

Technology companies often cut hiring plans before the broader economy weakens. Declining tech openings can precede wider employment contractions by several months, making them an early warning signal for labor market deterioration.

How do AI and tech layoffs interact?

AI is simultaneously creating new tech roles (AI engineering, prompt engineering, ML ops) and eliminating existing ones (QA, junior development, content writing, data entry). The net effect on tech employment depends on whether new role creation outpaces displacement.

Where does tech job opening data come from?

American Default tracks tech openings from BLS JOLTS (Job Openings and Labor Turnover Survey) and Indeed's job posting index, which provides near-real-time data on employer hiring intent.

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Why does The Tech Drought matter?

The Tech Drought is one of 91 indicators in the American Distress Index's ai workforce layer — the signal that predicted the 2008 crisis two years before delinquency data confirmed it.
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