Techreviewer, an independent platform analyzing IT service companies, released its annual IT Labor Market in 2025 research. The findings reveal a key contradiction: 71.6% of companies rate their talent pool as strong, yet 53.7% struggle to find candidates with the necessary skills.
Based on responses from over 100 IT services companies in North America, Europe, and Asia, the research shows that hiring demand remains positive but is increasingly volatile. In 2025, 43.3% of companies reported hiring growth, while 26.8% saw declines, indicating a shift from geographic to skill-fit challenges.
Companies Focus on Building Internal Capabilities
Instead of only increasing salaries, organizations are investing in structural solutions. Training and development now lead recruitment strategies for 50.7% of companies, and 83.6% offer upskilling and reskilling initiatives. Remote work adoption rose to 49.3% from 29.0% year over year, establishing it as a standard hiring practice.
Work models are now evenly split among hybrid (31.4%), remote-first (35.8%), and on-site-first (32.8%) approaches. Additionally, 79.1% of companies report stable or improved productivity under these arrangements.
AI Shapes Productivity Expectations and Skills Requirements
The report shows that 47.8% of respondents expect AI to boost productivity, while 52.2% anticipate a significant impact on required IT skills in the near term. Only 10.4% express concerns about job replacement, with most companies viewing AI as a tool to accelerate workflows rather than reduce staff.
Retention strategies remain effective, with work-life balance (61.2%) now surpassing compensation as the top factor for employee retention. For 2026, 58.3% of companies expect IT professional demand to grow, but anticipate more cautious and selective hiring.
The full report is available at https://techreviewer.co/blog/it-labor-market-in-2025
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