The US tech sector lost 15,000 jobs in March even though the overall US economy saw 178,000 jobs gained across all sectors, according to data from multiple sources, including the US Department of Labor.
CompTIA, which analyzed the Friday jobs data released by Labor Department’s Bureau of Labor Statistics (BLS), pegged the unemployment rate for tech workers at 3.9%. That’s still below the national unemployment rate of 4.3%.
The March losses reflect a downward trend compared to the 7,100 jobs gained in February.
Most of the jobs lost were in the custom software services and systems design occupation category, which shed 13,200 positions. Overall, about 118,000 tech jobs were lost across IT and non-IT sectors..
According to Challenger, Gray & Christmas, employers cut 60,620 jobs in March. That’s up 25% from the number of cuts in February, but not as high as a year ago.
“Removing the wave of federal layoffs announced in February and March of last year, job cut announcements in 2026 are closely following the pattern of 2025,” ,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas. “Last year it was government, retail, and technology. This year, it’s technology, transportation, and healthcare.”
Tech firm cuts mounted in March
The tech sector lost 18,720 jobs last month, including cuts from Dell, Oracle, and Meta, which is restructuring its Reality Labs division.
So far, the tech sector has lost 52,050 jobs in 2026, higher than the 37,097 lost in the first three months of 2025. And more layoffs are coming as AI’s influence drives personnel decisions this year, Challenger, Gray & Christmas said in the research note.
AI was cited as a reason for 15,341 job cuts in March, the research firm said. Notably, Block cut 4,000 jobs in a shift it portrayed as moving toward the automation of work using AI. But many criticized Block for “AI-washing,” where companies use AI to justify downsizing.
AI has been cited as a reason for 54,836 layoffs so far in 2026, accounting for 5% of all jobs cut, higher than 3% in February, according to Challenger, Gray & Christmas.
AI is forcing a shift in workforce skills
Companies are investing in AI instead of human labor, and functions like AI coding are replacing human developers. “Other industries are testing the limits of this new technology, and while it can’t replace jobs completely, it is costing jobs,” Challenger Gray and Christmas said.
Multiple studies noted the emergence of a new AI-savvy workforce, with tech job listings reflecting that shift as companies gradually implement AI strategies.
“More organizations are seeking talent with the technical depth to support automation, data integrity, and scalable systems,” said Kye Mitchell, head of Experis North America.
The appetite for AI is also creating positions needed to build out digital and physical infrastructure, Mitchell said.
The BLS data shows the labor market is regaining its footing, though the job numbers may be telling only a partial story, said Ger Doyle, Regional President, North America, at ManpowerGroup.
The ongoing Middle East conflict could also affect jobs in non-tech sectors. “Deepening geopolitical risk and higher energy prices create real uncertainty about what comes next,” Doyle said.