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The US software engineering job market remains flat in May 2025, with hiring activity stable but slow. Productivity improvements continue inside companies, especially with the adoption of AI coding tools. JPMorganChase, for example, reported a 20 percent increase in developer output through its internal platforms. But even with gains in efficiency, most firms are not actively growing their teams. The focus is still on maximizing current talent rather than scaling up headcount. According to Candogram Inc.’s research, software engineering job postings have leveled off following a long downward trend. The market is cautious. Companies are not hiring at the pace seen during the post-pandemic-era expansion, when digital infrastructure was scaling fast. Now, the hiring is targeted and more strategic. Senior engineers with experience in areas like cloud, security, and AI are still seeing opportunities, but entry-level roles have become harder to find. The number of open postings has slowed in part due to increased operating costs and shifting business confidence. Finance, insurance, and information sectors are facing similar pressure. Dealmaking has dropped in banking as firms hold back due to trade policy uncertainty. Insurers are being hit by higher loss costs and volatility. In the information sector, firms are slowing hiring as input costs rise, especially for imported tech hardware and software tools. Recent tariffs are a key factor, with trade uncertainty now one of the main reasons companies are slowing or delaying hiring. Software engineering continues to be a core function, and demand for developers is expected to return as businesses realign and re-invest. But right now, the job market is slower, and companies are being more selective as they adjust to economic changes. By Shahat Ohid #SoftwareEngineering #TechHiring #JobMarket2025 #SoftwareJobs #HiringTrends #Candogram
