Employment in the US information technology industry has fallen to its lowest level since 2015 as artificial intelligence (AI), post-pandemic restructuring and layoffs continue to reshape the technology sector.
Data released by the US Bureau of Labor Statistics (BLS) showed employment in the information sector declined by 10,000 month-on-month in September to 2.74 million, marking its lowest level in more than a decade.
The sector has lost 24,000 jobs over the past three months and 120,000 positions compared with a year earlier.
The US information industry includes web search portals, data processing, information services, software publishing, telecommunications, broadcasting, motion pictures and sound recording.
US technology employment falls from 2022 peak
Earlier data of BLS shows that technology companies expanded their workforces rapidly during the Covid-19 pandemic as demand for digital services increased.
Total employment in the industry grew from about 2.61 million in March to over 3.12 million towards the end of 2022. Since then, the industry has seen a sharp decline in jobs.
Subsequent restructuring and the rapid emergence of generative AI following ChatGPT's launch in November 2022 have coincided with a sharp change in hiring trends.
Major technology companies, including Meta, Oracle and Microsoft, have announced layoffs in recent months as they redirect investments towards AI development.
The employment decline indicates that the sector continues to shed jobs even as companies significantly increase spending on AI infrastructure and technology.
Indian IT companies face potential impact
The trend is significant for India's technology services industry because major companies such as Tata Consultancy Services (TCS), Infosys, Tech Mahindra, HCLTech and Wipro depend heavily on the US market for business.
Together, these five companies employ about 1.5 million professionals.
According to media reports, their combined workforce declined by 6,981 employees in FY26, compared with net additions of 12,718 workers in FY25.
In FY24, the combined employee strength of these companies had fallen by about 69,000.
Continued weakness in US technology employment, alongside increased investment in AI, could therefore remain an important factor for Indian IT companies as they adjust their workforces and business models to changing client requirements.
