The U.S. job market is cooling, with hiring slowing across industries and the software sector grappling with elevated unemployment, according to veteran headhunter Lisa Carver. In a recent interview, Carver, who leads tech recruitment at Carver Search, shared insights from the front lines of the 2025 labor market, painting a challenging picture for job seekers, particularly in tech.
A Broad Slowdown in Hiring
Carver notes a significant pullback in hiring compared to the post-pandemic boom of 2021-2022. Companies are adopting a cautious approach, prioritizing cost-cutting and efficiency amid economic uncertainty. Job openings dropped to 7.4 million in February 2025, down from a peak of 12 million in 2022, per the Bureau of Labor Statistics. Industries like retail, manufacturing, and finance are scaling back, with many firms freezing headcounts or reducing staff through attrition.
Carver notes a significant pullback in hiring compared to the post-pandemic boom of 2021-2022. Companies are adopting a cautious approach, prioritizing cost-cutting and efficiency amid economic uncertainty. Job openings dropped to 7.4 million in February 2025, down from a peak of 12 million in 2022, per the Bureau of Labor Statistics. Industries like retail, manufacturing, and finance are scaling back, with many firms freezing headcounts or reducing staff through attrition.
Software Sector Struggles
The software industry, once a hiring juggernaut, is facing a tough reality. Carver reports unemployment in the sector nearing 6%, double the national average of 3.1%. Big Tech layoffs—Meta cut 10,000 jobs in 2024, Amazon 14,000—have flooded the market with experienced engineers, intensifying competition. Startups, squeezed by high interest rates and venture capital dry-ups, are also hiring less. “I’m seeing senior developers with 10 years of experience struggle to land roles,” Carver says.
The software industry, once a hiring juggernaut, is facing a tough reality. Carver reports unemployment in the sector nearing 6%, double the national average of 3.1%. Big Tech layoffs—Meta cut 10,000 jobs in 2024, Amazon 14,000—have flooded the market with experienced engineers, intensifying competition. Startups, squeezed by high interest rates and venture capital dry-ups, are also hiring less. “I’m seeing senior developers with 10 years of experience struggle to land roles,” Carver says.
The shift stems from over-hiring during the pandemic and a pivot to AI-driven automation. Companies are investing in AI tools to replace routine coding tasks, reducing demand for mid-level software engineers. Roles in cybersecurity and AI development remain hot, but overall, “the market is brutal for generalist programmers,” Carver warns.
Challenges for Job Seekers
Carver highlights a tougher hiring process. Employers are pickier, seeking candidates with niche skills or direct industry experience. Remote work opportunities, once abundant, are shrinking—only 10% of tech jobs are fully remote in 2025, down from 25% in 2022. Salary expectations are also resetting: entry-level software engineers now earn $90,000-$110,000, compared to $130,000 at the 2022 peak.
Carver highlights a tougher hiring process. Employers are pickier, seeking candidates with niche skills or direct industry experience. Remote work opportunities, once abundant, are shrinking—only 10% of tech jobs are fully remote in 2025, down from 25% in 2022. Salary expectations are also resetting: entry-level software engineers now earn $90,000-$110,000, compared to $130,000 at the 2022 peak.
Silver Linings and Strategies
Despite the gloom, Carver sees opportunities for adaptable candidates. Demand persists for specialized roles like machine learning engineers and cloud architects, with salaries holding strong at $150,000+. Smaller firms and non-tech industries, like healthcare and logistics, are quietly ramping up tech hiring, offering less competitive paths.
Despite the gloom, Carver sees opportunities for adaptable candidates. Demand persists for specialized roles like machine learning engineers and cloud architects, with salaries holding strong at $150,000+. Smaller firms and non-tech industries, like healthcare and logistics, are quietly ramping up tech hiring, offering less competitive paths.
Carver’s advice for job seekers:
- Upskill Fast: Learn AI, cybersecurity, or cloud platforms like AWS through bootcamps or certifications.
- Network Aggressively: Tap LinkedIn or alumni networks to uncover hidden roles.
- Be Flexible: Consider contract work or non-tech industries to gain a foothold.
- Polish Your Brand: Optimize resumes with keywords and showcase projects on GitHub.
Looking Ahead
Carver predicts a slow recovery for tech hiring, with 2026 potentially bringing relief as AI investments mature and economic conditions stabilize. For now, resilience and strategic pivoting are key. “The market rewards those who adapt,” she says. Job seekers in software and beyond must navigate a leaner, more selective landscape to land their next role.
Carver predicts a slow recovery for tech hiring, with 2026 potentially bringing relief as AI investments mature and economic conditions stabilize. For now, resilience and strategic pivoting are key. “The market rewards those who adapt,” she says. Job seekers in software and beyond must navigate a leaner, more selective landscape to land their next role.
