Demand for software engineers and other technology professionals appears to have bottomed out at levels roughly 30% below 2020 highs. As the industry faces growing pressure from both the rise of AI and increased scrutiny in areas such as private credit and private equity-backed business models, hiring trends have shifted sharply. Indeed job postings for software-related roles began declining rapidly in 2023 and reached cyclical lows in 2025, reflecting broader uncertainty across the sector. Looking ahead, the future behavior of software companies will likely depend heavily on how aggressively firms adopt AI to automate development work and reduce reliance on traditional software services.
Source: Indeed via FRED, The Business Week Graphic; 2020=100
This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.
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