🗘 Last updated on 12 December, 2025

The tech sector enters 2026 after a turbulent period marked by layoffs, economic uncertainty and the rapid adoption of AI‑powered tools. 

Beyond talent shortages and shifting skill demands, 2026 will also be shaped by widening tension between employees and employers. 

Studies show rising distrust, declining engagement, and uncertainty caused by AI adoption, rolling layoffs, and return-to-office directives. These dynamics quietly influence hiring outcomes – from candidate expectations to offer acceptance rates.

While the industry contracted in 2025 with 120,444 tech employees laid off (239 tech companies with layoffs) data from recent surveys show that demand for skilled technologists remains strong but is shifting towards specialized skills and remote/hybrid work models.

As industry giants grapple with layoffs, the echoes of these decisions will reverberate into 2026, shaping hiring trends in the tech industry and influencing the broader tech hiring trends we expect to see in 2026.

Attracting top tech talent remains a challenge in the shift towards recovery

2026 begins with employee–leader disconnect, softening job markets, rising AI pressure, slow-motion RTO, and declining worker leverage.

Amidst these, a flicker of hope emerges as the hiring in the tech industry anticipates a gradual recovery in 2026. 

Encouraging signs such as the projected increase in global IT spending hint at brighter days ahead. 

However, the path to redemption is not without its challenges. 

Despite the optimism, layoffs persist with hundreds of top tech companies laying off tens of thousands of tech workers in 2025, according to the Tech Layoff Tracker.

While experts foresee a return to normalcy in hiring practices, the road ahead remains fraught with uncertainties.

These shifts are already visible in emerging tech recruitment trends as companies recalibrate strategies to navigate a softer job market

Top tech hiring trends in 2026

While tech teams expand again in 2026, workers are entering the year with historically low trust in leadership. 

Mentions of “disconnect,” “miscommunication,” and “misalignment” in employee feedback have surged  – signalling a culture challenge that directly impacts hiring, retention, and employer branding. 

Companies ignoring this sentiment risk losing top candidates despite market softness.

And despite the anticipation of flooded candidate pools post-layoffs, the reality paints a different picture. 

90% of tech managers voice the ongoing struggle to unearth top talent. 

With 61% of hiring managers gearing up for team expansions, these realities form the foundation of the key tech industry hiring trends shaping 2026.

Moreover, the attrition rates among tech employees is at an all-time high, with a whopping 64% contemplating job changes. This injects a sense of urgency into retention strategies.

🔖 Recommended Read – Top 10 Technical Recruitment Strategies to Hire Tech Talent

1. AI and automation reshape hiring and entry‑level jobs

Recent research suggests that automation is already influencing hiring decisions. A World Economic Forum survey found that 40% of employers plan to reduce staff when AI can automate tasks. 

AI’s ability to handle routine tasks means that many entry‑level roles are vulnerable. This shift puts a premium on experienced professionals and on candidates who can work with AI rather than compete against it.

PwC’s Workforce of the future study echoes these concerns. In a global survey of 10,029 people from China, Germany, India, the UK and the US, 37% of respondents said they are worried about automation putting their jobs at risk, yet 73% believe technology will never replace the human mind. 

Employers should therefore focus on roles that blend human creativity with AI‑assisted workflows and support employees through reskilling and continuous learning.

This shift is becoming one of the most defining tech hiring trends as organizations prioritize AI-ready skill sets. And this emphasis on AI-driven structure and efficiency is echoed across the industry.

“Inclusive hiring and strong candidate experience now go hand-in-hand. When hiring is structured and early-stage tasks are streamlined with AI, ambiguity falls, fairness increases, and candidates face less friction, especially those changing careers or without traditional resume credentials.”

Luke Smith, Talent Acquisition and Experience Specialist at Toyota (GB)

2. Companies are recalibrating their compensation strategies

89% of tech workers express willingness to return to full-time office setups for a raise in base salary, marking an 18% surge from previous years. 

The industry echoes with salary hikes ranging from 10% to 15%, especially in domains like cybersecurity, cloud computing, AI, and machine learning. 

As the war for talent rages on, competitive salaries emerge as a top trend in the tech industry.

3. Embracing agility and efficiency in recruitment processes

In an era where agility reigns supreme and top candidates are taken off the market in 10 days, companies with sluggish recruitment processes risk losing coveted candidates to competitors who are better adapted to the updated recruitment processes. 

Job seekers, buoyed by a surge of opportunities, demand speed and efficiency in hiring procedures. 

In order to stay ahead, companies have started streamlining their recruitment pipelines, minimizing delays and maximizing candidate engagement.

They’re achieving this through a variety of recruitment automation and candidate pre-screening

 tools.

This push toward speed and automation reflects broader tech recruitment trends where hiring efficiency directly influences talent outcomes

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4. The great employee–leader disconnect reshapes employer branding

Glassdoor’s study highlights a growing trust gap between employees and leaders – a critical backdrop for tech hiring.

From Glassdoor review analysis between 2024 and 2025:

• Mentions of “disconnect” in reviews referencing senior leadership are up 24%
• “Miscommunication” mentions are up 25%
• “Distrust” mentions are up 26%
• “Misaligned/misalignment” mentions have surged by a massive 149%

Workers are entering 2026 highly skeptical of leadership decisions – from RTO mandates and AI adoption to ongoing layoffs.

Why this matters for tech hiring

• Your employer brand is no longer just about perks and pay – it’s about trust, transparency, and fairness.
• Tech candidates increasingly research leadership sentiment via platforms like Glassdoor before accepting offers.
• Companies that communicate clearly about strategy, AI usage, and role security will stand out in a cautious tech talent market.
  

5. The “forever layoff” culture influences candidate perception

There’s a new concept: the “forever layoff” – smaller, recurring layoffs instead of rare, large-scale cuts.

Small layoffs (fewer than 50 employees) increased from 38% of layoffs in 2015 to 51% in 2025. And mentions of layoffs and job insecurity in employee reviews are higher in late 2025 than at the peak of pandemic-era cuts in March 2020.

For tech professionals, this creates a constant low-grade anxiety – “Will I be next?”

Impact on tech hiring

• Candidates are more cautious about joining companies known for frequent small cuts.
• Employer stability and clear workforce planning become strong differentiators.
• Transparent communication around restructuring, AI adoption, and growth plans can help rebuild confidence.
  

6. Job seekers will “take what they can get” – but might disengage later

The soft labor market is changing candidate behavior in subtle ways. Job applicants were 12% less likely to reject a job offer in 2025 than in 2023.

And offer acceptance rates in 2025 were at their lowest decline levels since 2020, with candidates accepting around 75% of offers they receive.

Candidates are less picky now… but this comes with a warning. Many are accepting roles that are not a great fit simply because options are limited.

Impact on tech hiring

• Short-term – easier offer acceptance if you move candidates quickly and communicate clearly.
  
• Long-term – risk of mis-fit hires, disengagement, and higher attrition once the market improves.

The tech sector steps into 2026 with the weight of economic turbulence and accelerating AI adoption 

… but also the promise of gradual recovery. 

The trends outlined above signal that while candidate pools may appear fuller, true top-tier talent is still scarce, selective, and seeking stability, transparency, and fairness. 

Companies that embrace agility, communicate openly, invest in trust-building, and integrate AI-powered recruitment efficiency will stand out in a cautious and competitive market.

The tech industry is slowly recovering, and hiring success will belong to organizations that evolve with the times and adapt to these emerging tech hiring trends – blending automation with human insight, prioritizing culture alongside compensation, and building workplaces that inspire confidence during this period of uncertainty.