Weekly Jobless Claims Drop to 205,000 as Labor Market Stays Resilient
74% of Tech Employers Can’t Find the Skilled Talent They Need
Tech hiring intentions are improving heading into Q2, but the talent shortage that has defined this sector shows no sign of letting up. According to the Experis Q2 2026 Tech Talent Outlook, based on responses from 4,655 Tech and IT Services employers across 42 countries, U.S. employers reported a Net Employment Outlook of 41% for April through June. That’s up 8 points from Q1, though down 5 points from the same period a year ago.
The hiring breakdown: 54% of tech employers plan to add staff in Q2, 31% expect to hold steady, and 13% anticipate cuts. Despite those intentions, 74% say they’re struggling to find the skilled talent they need.
The skills data is where it gets interesting. On the technical side, AI literacy topped the list at 34%, followed by AI modeling and application development at 33%. The number one human skills gap, cited by 44% of employers, was professionalism and work ethic, ahead of critical thinking at 39% and adaptability at 37%. You can upskill someone on AI tools. Building professional judgment takes considerably longer.
To address the shortage, 29% of employers are upskilling and reskilling current staff, 28% are raising wages, and another 28% are targeting new talent pools. Twenty-two percent are already using AI or automation to reduce their overall staffing needs, a number worth watching.
For employers working through the tech talent gap, our recruiting team specializes in finding professionals with the technical and human skills that are hardest to source right now.
Related: Ways Tech Hiring Will Change
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Frequently Asked Questions
Weekly unemployment claims are one of the most reliable real-time indicators of labor market health. When initial claims fall below 225,000, it generally signals a stable market with limited layoff activity. The week ending March 14 came in at 205,000, near the low end of the healthy range and well below the year-ago reading of 225,000.
Initial claims measure new layoffs. Continuing claims measure how long people remain unemployed before finding new work. When initial claims fall but continuing claims tick up, it typically means fewer people are losing jobs, but those who are unemployed are taking slightly longer to get rehired. That pattern is consistent with a hiring market where employers are moving more cautiously.
According to the Experis Q2 2026 Tech Talent Outlook, tech employers face shortages across both AI-specific technical skills and foundational human skills. AI literacy and AI modeling top the technical gap list, while professionalism and work ethic rank as the number one human skills deficit. The combination creates real hiring difficulty even in a market where 54% of tech employers plan to add staff in Q2 2026.
Experis data shows AI literacy (34%) and AI modeling and application development (33%) lead the technical skills list for U.S. tech and IT employers in Q2 2026. On the human side, employers most frequently cite professionalism and work ethic (44%), critical thinking and problem-solving (39%), and adaptability and willingness to learn (37%).
The Experis Q2 2026 report shows employers taking several approaches: 29% are upskilling and reskilling current employees, 28% are raising wages, 28% are expanding their talent pool search, and 22% are already using AI or automation to reduce their overall staffing needs.
