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Software Development Jobs in the U.S. on the Decline
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The surge in tech hiring in the U.S. in 2021 and 2022 represented one of the most aggressive talent grabs in industry history, only to be followed by widespread layoffs and hiring freezes as economic headwinds and post-pandemic corrections hit the sector.
This dramatic swing has reshaped the software development job market, leaving both companies and developers to navigate a new landscape of cautious growth and strategic hiring.
This graphic shows the percent change in software development job postings on Indeed U.S. since Feb. 1, 2020 to Feb. 28, 2025.
The data comes from Indeed via the Federal Reserve and is updated as of March 2025. Figures are seasonally-adjusted.
The U.S. Software Developer Hiring Boom Is Over
Below, we show the percent change in software development job postings on Indeed U.S. since Feb. 1, 2020 to Feb. 28, 2025.
| Date | U.S. Software Development Job Listings (% change) |
|---|---|
| 2020-02-01 | 0% |
| 2020-05-01 | -30.25% |
| 2020-08-01 | -30.70% |
| 2020-11-01 | -19.55% |
| 2021-02-01 | -1.33% |
| 2021-05-01 | 26.10% |
| 2021-08-01 | 51.31% |
| 2021-11-01 | 92.90% |
| 2022-02-01 | 123.28% |
| 2022-05-01 | 122.18% |
| 2022-08-01 | 93.37% |
| 2022-11-01 | 54.40% |
| 2023-02-01 | 22.23% |
| 2023-05-01 | -1.51% |
| 2023-08-01 | -17.80% |
| 2023-11-01 | -25.44% |
| 2024-02-01 | -27.13% |
| 2024-05-01 | -30.86% |
| 2024-08-01 | -30.41% |
| 2024-11-01 | -32.45% |
| 2025-02-01 | -33.36% |
| 2025-02-28 | -36.48% |
Breaking into tech as a software developer in 2025 won’t be as easy as it was before—job listings are at their lowest in five years, down more than 33% from 2020 levels.
Software development job postings soared in 2021 and 2022 as tech companies expanded rapidly, fueled by economic recovery and a surge in startup funding.
However, hiring slowed dramatically in 2023 as economic uncertainty, widespread layoffs, and reduced venture capital investment hit the industry.
Some other factors behind the decline in software developer jobs include the widespread adoption of AI-powered software development tools that enhance productivity and a shift in focus by tech companies toward efficiency rather than expansion.
Despite the overall decline in software development job postings, major tech hubs like the San Francisco Bay Area and New York have continued to see net job growth in the tech sector, including developer roles, over the past few years.
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The post Charted: The Decline of U.S. Software Developer Jobs appeared first on Visual Capitalist.