The tech market lost 29,000 jobs in March, even as the unemployment rate for tech-related jobs slipped 0.1% to 3.1%, according to an analysis of US Labor Department data released today.At the same time, tech sector employment fell by 8,428 jobs last month, driven largely by job cuts in tech services and telecommunications, according to CompTIA, a non-profit IT trade association that analyzed figures from the US Bureau of Labor Statistics (BLS)The BLS data, CompTIA said, sent conflicting signals about the IT job market as uncertainty around it accelerated.With many employers in wait-and-see mode, the jobs data is about in line with expectations for the month, said Tim Herbert, chief research officer at CompTIA.Overall, US job growth beat expectations, with the broader economy adding 228,000 positions. Thats nearly 100,000 more than the 135,000 economists had predicted would be added. Conversely, the federal government lost 4,000 jobs, due to reduction in force efforts by the unofficial Department of Government Efficiency (DOGE).Victor Janulaitis, CEO of IT industry research firm Janco Associates, said DOGEs impact is causing IT contracts to be delayed, leaving government IT professionals uncertain about their future.The overall US unemployment rate rose slightly to 4.2% in March, just 0.1% higher than in February. Previous US job gains for January and February were revised down by a total of 48,000, with January reduced by 14,000 and February by 34,000, according to BLS data.In the first quarter of 2025, the IT job market shrank by 34,200 jobs, according to Janulaitis. The number of unemployed IT professionals dropped slightly in March to 133,000 from 148,000 at the start of the year. We believe that many low-skilled, legacy-skilled IT pros, or displaced IT professionals have stopped looking for jobs in the IT sector, he said.CompTIA said new employee job postings for tech occupations rose slightly to more than 213,000. In all, there were nearly 478,000 active tech job postings last month. Industry sectors adding the most new tech job postings included professional, scientific and technical services (52,526), administrative and support services (26,099) and manufacturing (21,975).Software developers and engineers, tech support specialists, systems engineers and architects, and cybersecurity engineers and analysts were in highest demand, according to CompTIA. Positions in artificial intelligence (AI) or that require AI skills accounted for 21% of all active tech job postings. And half of all tech job postings did not require a four-year academic degree.Several industry experts saw the uptick in overall hiring and steady unemployment rates as a good omen.Martha Heller, CEO of executive search firm Heller, called the BLS jobs report healthy, and said it reinforces the plain truth that technology innovation (primarily AI) will drive up employment. In every sector, companies need people to realize the return on their AI investments, and while those people are often technologists, the AI employment boom will expand to include a broader range of skills.With the nearly certain instability that our current economic policy brings, technology and the people who can use it to navigate uncertainty will have job security for a long time, Heller said.Kye Mitchell,head of US tech recruiting firm Experis North America, sees AI as a boon for all businesses. In the tech sector, our real-time data shows that businesses are addressing their AI needs by focusing on their data to be prepared to best leverage AI in this new era, he said.Quarter over quarter, demand for data analysis and cleansing has risen sharply, he said. For example, roles for data scientists are up 238%. Database architect positions rose 142%. And, job openings for mathematicians were up 1,272%, Mitchell said.Additionally, theres a growing need for executive management, indicating businesses are relying on leadership to drive AI integration, he said. The impact of recent economic policy shifts on AI worker demand is still unfolding, and market uncertainty may lead to longer decision timelines and adjustments.Others familiar with the tech industry saw the latest jobs report as positive, including Ger Doyle, US country manager at global staffing firm ManpowerGroup. Todays jobs report is a welcome sign, given the negative indicators we saw leading into it. While the US labor market is proving to be resilient, there are signs of cooling that are consistent with employers navigating uncertainty.ManpowerGroup data shows a 2% overall decline in all job postings and a 3% drop in new job postings. While the labor market appears stable, Doyle said employers remain cautious, with the exception of healthcare and education sectors.Uncertainty is keeping both employers and employees from making moves, leading businesses to focus on maintaining current workforces but considering adjustments if the uncertainty persists, he said.Janulaitis said interviews he performed with more than 100 CFOs and CIOs revealed optimism about Trump administration, though many anticipate a mild economic downturn in mid-2025. Unemployed IT pros found jobs faster than expected as CIOs quickly filled positions while hiring was still authorized, he said.`