The tech hiring market is being pulled in two directions: a flood of candidates for certain roles and stark shortages in others.
New survey data from Indeed highlights the unevenness of the tech talent landscape and the profound impact of AI on reshaping the skills employers need most.
While many tech jobs attract an oversupply of applicants, the study found that key areas, such as cloud computing, data analytics, and AI development, are still starved for 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 a report released on Monday.
The study analyzed data from Indeed and Glassdoor on tech jobs, in combination with a commissioned survey of 1,035 tech workers in the US conducted by YouGov. Participants, primarily working in software and IT, answered an online questionnaire between late May and early June.
How AI reshapes tech jobs
Generative AI is reshaping career paths. The Indeed study identified tech jobs that have been axed the most when companies adjust their operations to embrace generative AI.
Here are the top four roles that got cut in AI-inspired reorganizations:
- Software engineers and developers
- Quality assurance engineers
- Product managers
- Project managers
Indeed found that after such reorganizations, companies often reallocated resources to new tech roles. Here are the top three areas that benefited:
- Cybersecurity
- Data analytics/analysis
- AI teams
Shortages in critical tech skills
The top skills requested in tech job listings posted in the first half of 2025 include Python, SQL, and Amazon Web Services, according to Indeed data.
Indeed also looked at which areas of tech exhibited the largest increases in job listings. Fields that stood out included AI, Python, Google Cloud Platform, and continuous integration and continuous delivery (CI/CD), a process for integrating and releasing software changes more quickly.
Common tech skill clusters
Employers are beginning to think less about individual tools and more about clusters of tech skills packaged together, according to the study by Indeed.
Python, machine learning, and data analysis are increasingly inseparable, while AWS, DevOps, and CI/CD often appear in tandem, according to the data.
These clusters reflect how technical professionals are expected not only to master a language or technology, but also to possess capabilities across different technologies.
Generative AI is accelerating this shift. Roles that once centered on traditional coding are being redefined to include prompt engineering, AI integration, and the responsible deployment of AI systems, according to Indeed. Professionals are now expected to partner with AI tools to drive efficiency, strengthen data analysis, and more.
The gap between some tech job postings and available talent is widening, leaving employers scrambling to compete for a limited pool of specialists, according to Indeed. To bridge the gap, Indeed suggested that companies sharpen recruitment campaigns around what highly sought-after candidates actually value, from career growth to cutting-edge project opportunities.
At the same time, learning new skills has become a necessity rather than a perk. Identifying employees with adjacent skill sets and providing them with pathways into high-demand roles is increasingly viewed as one of the few sustainable ways to keep pace with market needs, according to Indeed.
Tech talent shortages aren’t going away. They’re shifting toward the skills that define the AI era.
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