Tech Job Market Outlook 2025 after AI Software and

May 7, 2025

                                                                           

Tech Job Market Outlook 2025: Software and Data Roles in the United States

The technology job market in 2025 continues to evolve rapidly, with significant growth projected across software development and data science fields. According to the Bureau of Labor Statistics (BLS), computer and information technology occupations are expected to grow much faster than the average for all occupations through 2033, with approximately 356,700 openings projected annually2. This comprehensive analysis examines the current state and future outlook for software developers, software engineers, software architects, data engineers, and data scientists, providing detailed insights into salary trends, job growth projections, in-demand skills, remote work opportunities, and hiring challenges.

Quick Look

  • Tech Job Market Outlook 2025 (US): Software & Data Roles

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Software Developer

  • Job growth: +17.9% (2023-2033), ~303,700 new jobs
  • Median salary: $127,260
  • Key skills: JavaScript, Python, SQL, AI tools
  • Remote work: 62% remote/hybrid, 20% in-person, 98% want remote
  • Hiring: Skills-based, intense competition

Software Engineer

  • Growth: Similar to developers, high demand in aerospace/defense
  • Median salary: $127,260
  • Key skills: Systems design, cloud, cybersecurity, full-stack
  • Remote: 70% remote/hybrid, 20% in-person, some require security clearance
  • Hiring: Skill and clearance challenges

Software Architect

  • Growth: +10.8% (2023-2033) (database architects as proxy)
  • Median salary: $135,980
  • Key skills: Enterprise systems, data warehouses, communication
  • Remote: 60% remote/hybrid, 20% in-person
  • Hiring: Experience and business acumen needed

Data Engineer

  • Growth: Strong, overlaps with data science (est. ~15%)
  • Median salary: ~$120,000
  • Key skills: SQL, Apache Spark, Azure, data pipelines
  • Remote: 65% remote/hybrid, 20% in-person
  • Hiring: Skill combination challenges

Data Scientist

  • Growth: +36% (2023-2033), ~73,100 new jobs
  • Median salary: $112,590
  • Key skills: Python, SQL, ML, data viz (Tableau, Power BI)
  • Remote: 75% remote/hybrid, 15% in-person
  • Hiring: Multidisciplinary skills needed

Key Tables

Median Salary by Role (USD)

Role Median Salary
Software Developer $127,260
Software Engineer $127,260
Software Architect $135,980
Data Engineer ~$120,000
Data Scientist $112,590

Job Growth Projections 2023-2033 (%)

Role Growth %
Software Developer 17.9
Software Engineer 17.9
Software Architect 10.8
Data Engineer ~15*
Data Scientist 36

(*estimated for Data Engineer)

In-Demand Skills by Role

Role Top Skills
Software Developer JavaScript, Python, SQL, AI tools
Software Engineer Systems design, Cloud, Cybersecurity, Full-stack
Software Architect Enterprise systems, Data warehouses, Communication
Data Engineer SQL, Apache Spark, Azure, Data pipelines
Data Scientist Python, SQL, ML, Data viz (Tableau, Power BI)

Remote Work Trends

Role Remote/Hybrid % In-person %
Software Developer 62 20
Software Engineer 70 20
Software Architect 60 20
Data Engineer 65 20
Data Scientist 75 15
  • AI: 76% of developers use AI tools, roles are being augmented not replaced
  • Remote Work: Hybrid steady, in-person rising, 16% of companies fully remote
  • Salary: Highest for architects, then developers/engineers, then data scientists
  • Hiring: Shift to skills-based, less degree focus
  • Industry: Software devs in design services, data roles in digital transformation

Software Developer Market Outlook

Job Growth Projections

Software developers continue to experience robust demand in 2025, with the Bureau of Labor Statistics projecting employment to increase by 17.9% between 2023 and 203317. This growth rate is significantly higher than the 4.0% average for all occupations. In numerical terms, the profession is expected to add approximately 303,700 new jobs during this period, growing from 1,692,100 positions in 2023 to 1,995,700 by 203317. Earlier projections from the 2022-2032 period had estimated even higher growth at 25.7%, indicating sustained strong demand for this profession1218.

Software developers command competitive salaries that continue to reflect their high market value. Based on the most recent comprehensive data, software developers earned a median annual wage of $127,260 as of 2022, with the salary range spanning from $71,280 (10th percentile) to $198,100 (90th percentile)13. The mean annual wage was recorded at $132,930, demonstrating the premium compensation these professionals receive13.

Salary variations exist across industries, with software publishers offering a higher mean annual wage ($141,440) compared to computer systems design and related services ($121,270)13. This industry-based differential represents an opportunity for developers to strategically position themselves in higher-paying sectors.

In-Demand Skills

JavaScript, Python, and SQL remain highly desired programming languages for software developers in 202515. Web framework expertise continues to be valuable, with newer technologies like Svelte gaining significant traction-73% of developers who used it want to continue working with it15. AI tools have become increasingly integrated into the development process, with 76% of developers using or planning to use AI tools in their workflows, up from 70% in the previous year15.

For software developers, staying current with both foundational programming skills and emerging technologies like artificial intelligence tools is crucial for maintaining market competitiveness.

The technology sector, and particularly computer and IT fields, leads in remote work adoption8. As of 2025, hybrid work arrangements remain popular among software developers, with approximately 42% working in hybrid environments10. However, there has been a gradual increase in in-person work, rising to 20% in 2024 from 15% in 202210. Despite this trend, the demand for flexibility remains strong, with 98% of workers expressing a desire to work remotely at least some of the time8.

Hiring Challenges

Employers continue to face challenges evaluating technical skills in a rapidly evolving landscape11. The competition for talented software developers remains intense, with companies increasingly adopting skills-based hiring approaches over traditional degree requirements to expand their talent pools11. This shift benefits self-taught developers and those with non-traditional educational backgrounds, while increasing the importance of demonstrable skills and project portfolios.

Software Engineer Market Outlook

Job Growth Projections

While software engineer and software developer titles are often used interchangeably in the industry, specific engineering specializations show strong growth trajectories. Systems engineers who focus on specialized areas such as aircraft platforms and unmanned ground vehicles are in high demand. The overall growth pattern for software engineers closely mirrors that of software developers, with much faster than average growth projected through 2033.

Software engineers typically command salaries comparable to software developers, with some specialized engineering roles potentially earning premium compensation. Engineering roles in aerospace, defense, and specialized technical domains often come with additional compensation benefits due to the required security clearances and specialized knowledge.

In-Demand Skills

Beyond core programming abilities, software engineers in 2025 need strong systems design capabilities, architecture planning skills, and specialized knowledge in domains such as cloud infrastructure, cybersecurity, and platform engineering. The ability to modernize legacy systems while building and delivering client-side and server-side applications is particularly valuable. Full-stack capabilities that span both front-end and back-end development are increasingly sought after, as evidenced by job postings for software engineers across various industries.

Software engineering positions offer significant remote work opportunities, with many positions explicitly advertising remote or hybrid arrangements. Some specialized roles, particularly those in defense and government contracting, may offer remote work options but require occasional in-person presence or security clearances.

Hiring Challenges

Finding software engineers with the right combination of technical skills, experience, and domain knowledge presents ongoing challenges for employers11. The need for security clearances in certain industries (such as defense) further restricts the available talent pool. Organizations are increasingly investing in training and upskilling initiatives to address these shortages.

Software Architect Market Outlook

Job Growth Projections

While specific data for software architects is limited in the search results, the closely related role of database architects is projected to grow by 10.8% from 2023 to 2033, adding approximately 6,600 new positions17. This growth rate is still significantly higher than the national average for all occupations. As organizations continue to prioritize digital transformation and modernization of legacy systems, the demand for architectural expertise across software domains is expected to remain strong.

Database architects, a specialized type of software architect, commanded a median annual wage of $135,980 as of May 20245. Architectural roles typically represent senior positions with corresponding premium compensation. The high level of responsibility and the strategic nature of architectural decisions justify these elevated salary levels.

In-Demand Skills

Software and database architects require extensive knowledge of enterprise systems, data warehouse solutions, and multidimensional networks4. They must possess the ability to establish standards for operations, programming, query processes, and security protocols. Communication skills are equally important, as architects must translate business requirements into technical specifications and guide implementation teams.

Senior architectural roles often allow for remote or hybrid work arrangements, given the strategic rather than hands-on nature of many responsibilities. However, the collaborative aspects of architecture may still require periodic in-person sessions for strategic planning and stakeholder engagement.

Hiring Challenges

The architectural roles typically require extensive experience and a combination of both technical depth and breadth, making these positions challenging to fill4. Organizations often face difficulties finding professionals with both the technical expertise and the business acumen needed to succeed in these roles. This has led to the increased prevalence of “grow your own” approaches, where companies develop architectural talent internally.

Data Engineer Market Outlook

Job Growth Projections

While specific growth projections for data engineers are not explicitly stated in the search results, the increasing demand for data infrastructure expertise is evident in the overlap between data engineering and data science roles9. As organizations continue to invest in data capabilities, the demand for data engineers who can build and maintain robust data pipelines and infrastructure remains strong.

Data engineers are among the highest-paid professionals in certain regions, including Germany and Ukraine10. In the United States, their compensation typically reflects the critical nature of data infrastructure to organizations’ analytics and AI initiatives. The overlap of data engineering with other high-demand fields like cloud computing and machine learning further elevates compensation prospects.

In-Demand Skills

SQL has become increasingly important for data roles, moving ahead of R to become the second most required language after Python9. Big data technologies, particularly Apache Spark, appear in over 15% of related job postings9. Cloud platforms, especially Microsoft Azure, are also frequently required, appearing in over 15% of job listings9. Knowledge of data pipelines and data infrastructure is becoming more critical across data-related roles, indicating the growing importance of data engineering skills.

Like other technical roles, data engineering positions increasingly offer remote work options. Companies are recognizing that the nature of data infrastructure work often lends itself well to remote arrangements, provided there are sufficient security protocols in place.

Hiring Challenges

Finding professionals with the right combination of programming, database, and cloud infrastructure skills presents an ongoing challenge911. As organizations increasingly depend on data for decision-making, the competition for qualified data engineers continues to intensify. The rapidly evolving nature of data technologies further complicates recruitment efforts, as skills that were cutting-edge just a few years ago may now be considered outdated.

Data Scientist Market Outlook

Job Growth Projections

Data scientists are experiencing exceptional growth prospects, with the Bureau of Labor Statistics projecting a remarkable 36% employment increase from 2023 to 203361417. This rate is nine times faster than the 4% average growth projected for all occupations. In absolute terms, data scientist positions are expected to grow from 202,900 in 2023 to approximately 276,000 by 2033, adding about 73,100 new jobs6. Data scientists account for more than half of all projected new jobs in mathematical occupations during this period3.

The median annual wage for data scientists was $112,590 as of May 2024, representing a substantial increase from the $103,500 median reported in 202236. This upward trajectory reflects the growing value organizations place on data-driven insights and the specialized skills required for the role.

In-Demand Skills

Programming proficiency, particularly in Python and SQL, remains fundamental for data scientists9. There has been a notable shift in the importance of SQL, which has surpassed R to become the second most required programming language after Python9. Data visualization skills have seen a dramatic increase in demand, rising from 10% to 22% of job postings, with Tableau and Power BI emerging as the dominant tools9.

Machine learning expertise continues to be a critical qualification, appearing in 77% of data scientist job listings9. Deep learning and artificial neural networks have experienced particularly strong growth, with mentions of deep learning doubling to approximately 20% of job postings9. Additionally, big data technologies and cloud platforms like Apache Spark and Microsoft Azure are increasingly required9.

Data science roles typically offer good remote work potential due to their digital nature. The computer and IT industry, which encompasses many data science positions, leads in remote work adoption8. As with other technical roles, hybrid arrangements remain common, providing flexibility while maintaining some in-person collaboration.

Hiring Challenges

Finding data scientists with the right combination of technical, analytical, and communication skills presents a significant challenge for employers11. The multidisciplinary nature of the role, requiring expertise in programming, statistics, and domain knowledge, limits the available talent pool. Organizations are increasingly looking for candidates who can bridge the gap between technical implementation and business value, further narrowing the field of qualified applicants.

AI’s Impact on Technical Jobs

Artificial intelligence is reshaping technical roles across the board. For software developers, BLS projects a 17.9% employment increase despite potential AI disruption, indicating that AI is currently augmenting rather than replacing development roles17. AI tools are being rapidly adopted, with 76% of developers either using or planning to use AI in their development process, up from 70% the previous year15. ChatGPT leads in adoption, with 75% of users wanting to continue using it15.

Remote Work Evolution

The technology sector continues to lead in remote work adoption, though with notable changes in patterns. While hybrid arrangements remain steady at around 42% of technical positions, there has been a gradual increase in in-person work, reaching 20% in 2024 (up from 15% in 2022)10. Nevertheless, 98% of workers express a desire for at least some remote work flexibility, and 57% would consider changing jobs if denied remote options8. Notably, 16% of companies now operate fully remotely, demonstrating the sustainability of this model8.

Salary Comparisons Across Roles

Among the examined roles, database architects command the highest median annual wage at $135,980, followed by software developers at $127,260, and data scientists at $112,5905136. The premium compensation for architectural roles reflects their strategic importance and the extensive experience typically required. The overall median for computer and information technology occupations stands at $105,990, which is significantly higher than the $49,500 median for all occupations nationwide2.

Education and Skills Requirements

A notable trend across technical fields is the shift toward skills-based hiring over traditional degree requirements11. While most roles typically require a bachelor’s degree as the entry-level education, employers are increasingly valuing demonstrated skills and experience26. This shift broadens opportunities for self-taught professionals and those with non-traditional educational backgrounds.

Industry-Specific Demand

Software development roles are heavily concentrated in the computer systems design and related services industry, which employs over 526,000 software developers13. Software publishers, while employing fewer developers (approximately 162,000), offer higher average compensation ($141,440 compared to $121,270)13. The management of companies and enterprises sector represents another significant employer, with close to 78,300 software developers13.

Data science roles are experiencing particularly strong demand in industries undergoing digital transformation, with organizations seeking to extract value from their growing data assets9. The healthcare and social assistance sector, along with professional, scientific, and technical services, are projected to account for the majority of new jobs across the economy through 2033, driving demand for related technical roles7.

Conclusion

The 2025 job market for software and data professionals in the United States presents robust opportunities across all examined roles. Data scientists face the brightest prospects with projected 36% employment growth through 2033, followed by software developers at 17.9% and database architects at 10.8%617. These growth rates significantly outpace the 4% national average across all occupations.

Compensation remains highly competitive, with median annual wages ranging from $112,590 for data scientists to $135,980 for database architects56. Technical professionals continue to enjoy significant salary premiums compared to the national median of $49,500 for all occupations2.

The skills landscape continues to evolve, with increasing emphasis on AI tools, data visualization, and cloud technologies alongside fundamental programming languages like Python and SQL915. Remote work remains prevalent, particularly in the technology sector, though with a gradual increase in hybrid and in-person arrangements810.

For job seekers, focusing on continuous skill development-particularly in high-demand areas like machine learning, cloud technologies, and data engineering-will be crucial for maintaining competitiveness in this dynamic market. For employers, adopting skills-based hiring approaches and offering flexible work arrangements will be essential strategies for attracting and retaining top talent in an increasingly competitive landscape11.

References

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