Software Hiring Demand Rises Amid U.S. Job Market Slowdown

Inside the Software Hiring Demand Data

U.S. hiring slowed sharply in August. Software engineering was the exception: postings climbed to a six-month high, led by a handful of roles, firms, and states.

Software vs. U.S. Job Market: The Contrast That Matters

We said it last week: the broader labor market is cooling fast. Now, zooming into software specifically:

• Momentum: New software-engineering postings climbed for the second month in a row, from a June trough (~159K) to an August six-month high (~190K).

• Caution: One good month doesn’t cancel a weak macro tape. Treat August as a signal to watch, not necessarily a reversal of a multi-year down cycle.

As Gergely Orosz put it in The Pragmatic Engineer, “the job market feels pretty weird right now; software engineers applying for roles are finding it harder to get responses – while hiring managers tell me it now takes longer to fill positions even though overall recruitment is, confusingly, slightly up.”

Our data shows a similar split: weaker macro signals, but localized lifts in software postings. Software and digitalization positions were among the rare bright spots in a generally poor month for job postings.

Top Software Job Titles Hiring Now

The market isn’t confused about what it wants:

• Software Engineer: 106K

• Data Analyst: 23K

• Next cluster (6K–4K range): IT Specialist, Application Engineer, IT Project Manager, QA Tester

• Smaller but steady lanes (3K–2K): Infrastructure Engineer, Mechanical Engineer, Clinical Research Associate, Product Manager

One title (Software Engineer) dwarfs the rest. Data Analyst is the only secondary node with real weight. That concentration makes planning simpler and potentially more sensitive to any turn.

Top Companies Hiring Software Engineers

A handful of employers set the tone:

• Intuit: 11.7K

• Amazon: 5.5K

• Capital One Financial: 2.8K

• Amazon Web: 2.1K

• Microsoft: 1.9K

• Intone Networks: 1.5K

• PwC: 1.4K

• Deloitte New York: 1.3K

• Enterprise Solutions: 1.0K

• KPMG: 1.0K

Intuit is a current outlier at roughly 2× the next employer. Also note the source naming: “Amazon” and “Amazon Web” are listed separately; keep that in mind.

Top States for Software Jobs: Volume and Momentum

Top 10 by volume (MoM change):

• California: 26K (+13%) | Texas: 17k (+7%) | New York: 11K (+6%)

• Virginia: 10K (+16%) | Florida: 10K (+32%)

• Georgia: 7K (+13%) | Illinois: 7,318 (+24%) | Washington: 6,280 (+15%)

• New Jersey: 6K (+3%) | North Carolina: 6K (–2%)

High-volume hubs are still high volume. Inside that group, Alabama shows the fastest MoM lift; North Carolina is the only decliner.

Top movers by % change:

• Up: Alabama (+46%), Florida (+32%), Illinois (+24%), Other (+21%), Arizona (+20%)

• Down: Ohio (–10%), North Carolina (–2%), Tennessee (–1%)

Momentum is diffusing beyond the biggest hubs; several Southeast/Midwest/Southwest states are speeding up, while the pullbacks are relatively small and localized.

Industries Driving Software Hiring

By volume:

• Computer Software: 36K | IT Services: 32K | Staffing & Recruiting: 27K | Internet: 23K

• Financial Services: 10K | Management Consulting: 4K | Hospital & Health Care: 4K

• Accounting: 4K | Defense & Space: 4K | Unclassified: 2K

By % change (fastest movers):

• Translation & Localization (+243%) | Online Media (+125%) | Professional Training (+101%)

• Computer Software (+79%) | Market Research (+74%)

Largest declines: Event Services (–85%), Venture Capital (–57%), Primary/Secondary Education (–33%), Automotive (–28%), Health & Wellness (–28%)

Core digital categories (Software, IT Services, Internet) account for nearly half of all postings. Several knowledge- and content-related segments are accelerating sharply; a different cohort is decisively pulling back.

Playbook: How to Act on These Signals

For consultants & deal teams

• Anchor your story in concentration. Most demand sits in one title and a few industries; easy to size, easy to stress-test.

• Use dispersion to your advantage. Florida/Virginia/Illinois are gaining pace; Ohio/NC are soft. That’s a clean way to pressure-test client or target exposure.

• Watch the outliers. A single outsized employer (e.g., Intuit) can swing local comps; adjust your benchmarks accordingly.

For operators & talent leaders

• Plan for sensitivity. With demand concentrated, a small market turn will show up quickly in requisitions for the core Software Engineer role.

• Sequence your pipelines. If you need near-term traction, the data points to Florida/Alabama/Virginia/Illinois. 

• Keep industry maps current. Digital mainstays still carry the load; segments like Translation & Localization and Online Media are moving fast enough to matter for capacity planning.

For investors

• Underwrite on posture, not promises. Favor targets whose hiring patterns align with the accelerating industry/geo cohorts above.

• Use employer concentration as a risk lens. Heavy dependence on a small set of demand drivers cuts both ways.

The macro picture is soft. However, inside that softness, software engineering posted a meaningful August lift, with tight concentration by title, clear geographic dispersion, and a split personality across industries. Read it as an "opportunity with a seatbelt".

If you want to see this picture at the company level: competitors, portfolio targets, or your own org, request a demo of Aura’s platform.

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