AI Job Growth Steadily Climbs as Software Hiring Patterns Shift

AI is hiring. Software is shifting. What March's data tells us about the future of tech talent.

If you're looking for signals about where the tech job market is headed, Aura’s latest workforce intelligence report offers a compelling snapshot. Drawing from real-time job postings and job market data through March 2025, this latest data reveals two distinct trends: the acceleration of AI hiring and a quiet reshuffling in software engineering roles. Here's what the data shows, and why it matters.

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AI Roles Surge, Solidify Their Spot in Tech Strategy

AI roles comprised over 8% of all U.S. software job postings in March—the highest share in six months. While this number might seem modest, it signals AI's expanding influence. Companies are no longer experimenting—they’re operationalizing AI, with fresh budget cycles clearly fueling demand in 2025.

Industries like Consumer Goods (+15%) and Semiconductors (+9%) led the hiring charge for AI roles, suggesting a surge in applied AI use cases—from personalized product recommendations to chip optimization. In contrast, industries like Photography and Translation & Localization saw double-digit drops, hinting at saturation or automation taking over routine AI applications.

Software Engineering: Stability with a Side of Whiplash

After a traditional holiday dip in December, software engineering postings rebounded in January and have stabilized at slightly lower levels into March. The bigger story? Where the jobs are growing or fading.

• Big job gains: Sectors like Photography (+92%), Law Enforcement (+72%), and Translation & Localization (+90%) unexpectedly ramped up hiring for software engineers, reflecting the spread of digital infrastructure into non-traditional domains.

• Big pullbacks: Legacy-heavy functions like Executive Offices (-485%) and Broadcast Media (-196%) posted steep declines, likely due to automation, saturation, or budget tightening.

This divergence points to a rebalancing—software engineers aren’t just being hired by Big Tech anymore; they’re increasingly in demand by creative, public, and niche sectors.

State-Level Shakeups: The Rise of the Underdogs

Forget Silicon Valley—North Carolina (+18%), Delaware (+28%), and Louisiana (+18%) led the nation in software job growth. Meanwhile, New Jersey (-25%) and D.C. (-18%) saw sharp drops. The implication? Companies seem to be leaning into lower-cost, remote-friendly states for software talent, a possible long-term realignment in tech hubs.

Top Skills in Demand: AI & Engineering Converge

On the software side, the most frequently mentioned technical job skills in March included:

• Python

• Agile Methodologies

• Git

• SQL

• AWS

These aren’t just resume fluff; they reflect companies' infrastructure choices to support scalable, AI-compatible engineering teams. At the same time, some skills are on the rise (Rust, TypeScript) while others are fading (Objective-C, Perl), suggesting subtle shifts in what’s considered future-proof in engineering roles.

Remote Work: Here to Stay, But Not Growing Any More

Remote software jobs hovered at around 27% of total postings, down from seasonal highs in late 2024 but now stabilizing. While not increasing, this consistency indicates that remote work is now a baked-in feature for certain workforces, not a perk. Companies are reaping the benefits of distributed teams, and candidates expect flexibility.

Key Takeaway: AI Is Reshaping the Talent Map

This month's most important insight isn’t just the growth in AI-related job postings;  it’s how AI reshapes the entire software engineering landscape. From skill shifts to geographic dispersion and sector crossover, the tech talent market is undergoing a structural transformation.

For investors, consultants, and talent strategists, that means one thing: if your workforce strategy doesn’t account for AI-driven transformation, you're likely behind.

Want to dig deeper into your company’s position in this shifting market? Aura's platform lets you analyze hiring, skills, attrition, and sentiment trends across 20M+ companies in real time. Learn more with a platform demo.