Q3 2025 Tech Recruitment Report: Selective Hiring & Skills Gap

Executive Summary

Technology sector hiring shifted decisively toward quality over quantity in Q3 2025. While job posting volume remained stable, open roles more than doubled as filled positions plummeted 84%—from 14,637 in July to just 2,389 in September. This widening skills gap signals that tech companies are posting jobs but struggling to find qualified candidates, particularly for AI, data engineering, and cybersecurity roles exceeding 60-day fill timelines.

Key Q3 Technology Findings:

• Job postings stable through quarter (no major volume changes)
• Open roles more than doubled (Jul → Sep)
• Filled positions dropped 84% (14,637 → 2,389)
• Average salaries declined slightly (mid-level recalibration)
• AI/cybersecurity/data engineering roles: 60+ days to fill
• Remote/hybrid options increased modestly (flexibility advantage)

Tech hiring reality: Job postings remained stable in Q3 2025, but filled positions crashed 84% from July to September. Companies would rather leave roles open for months than compromise on quality—especially for AI, cybersecurity, and data engineering talent.

The Selective Hiring Shift

What Changed in Q3

Tech hiring moved from "post and pray" to "precision targeting." Companies maintained posting volume but became ruthlessly selective, resulting in:

The Paradox:

• More open positions (candidate scarcity)
• Fewer filled positions (higher standards)
• Stable posting volume (consistent need)

What This Signals:
Tech companies aren't lowering hiring standards despite extended timelines. They'd rather leave positions open than compromise on quality—particularly for specialized technical roles.

Month-by-Month Breakdown

July 2025:

• 23,958 total postings
• 14,637 positions filled (61%)
• 9,320 open positions (39%)
• 20% reposting rate
• $118K average salary

August 2025:

• 23,894 total postings
• 9,175 positions filled (38%)
• 14,718 open positions (62%)
• 13% reposting rate
• $116K average salary

September 2025:

• 24,120 total postings
• 2,389 positions filled (10%)
• 21,722 open positions (90%)
• 6% reposting rate
• $108K average salary

Skills-Based Hiring Dominance

Q3 saw accelerated adoption of skills-based evaluation:

• Traditional approach: "Bachelor's in Computer Science + 5 years experience"
• Skills-based approach: "Demonstrated proficiency in X, Y, Z technologies"

Organizations removing credential barriers expanded candidate pools 40-60% while maintaining quality standards through technical assessments and portfolio reviews.

Top Hiring Companies & Locations

Companies with Highest Activity (September)

1. Intuit – 3,267 postings | 91% with compensation | $75K avg | 37 days to fill
2. Microsoft – 719 postings | 97% with compensation | $168K avg | 24 days to fill
3. Meta – 628 postings | 100% with compensation | $172K avg | 23 days to fill
4. Instacart Shoppers – 532 postings | 0% with compensation | 8 days to fill
5. Cox Automotive – 381 postings | 98% with compensation | $77K avg | 30 days to fill

Top Hiring Markets (September)

1. New York, NY – 821 postings | $153K avg | 36 days to fill
2. San Francisco, CA – 658 postings | $178K avg | 14 days to fill
3. Atlanta, GA – 538 postings | $137K avg | 36 days to fill
4. Austin, TX – 523 postings | $129K avg | 18 days to fill
5. Redmond, WA – 504 postings | $172K avg | 26 days to fill

Role-Specific Insights

High-Demand, Hard-to-Fill Positions

AI/Machine Learning Engineers:

• Average fill time: 65-75 days
• Salary ranges: $140K–$180K+ (significant variance)
• Competition intensity: 8-10 companies per qualified candidate

Cybersecurity Specialists:

• Average fill time: 60-72 days
• Certification requirements extending timelines
• Government clearances adding 15-20 days for defense contractors

Data Engineers:

• Average fill time: 58-68 days
• Cloud platform expertise (AWS/Azure/GCP) highly valued
• Modern data stack familiarity (dbt, Snowflake, Airflow) differentiating

Full-Stack Developers (Senior+):

• Average fill time: 50-65 days
• Architecture experience increasingly required
• Generalists losing ground to specialized expertise

Mid-Level Recalibration

Average tech salaries declined slightly through Q3 as market conditions shifted:

What Happened:

• Over-hiring in 2021-2022 created compensation inflation
• Market correction bringing mid-level salaries to sustainable levels
• Senior/specialized roles maintaining premium compensation
• Entry-level positions seeing modest increases (pipeline investment)

Salary Trends by Level:

• Entry: $75K–$95K (stable to slight increase)
• Mid-level: $110K–$140K (5-8% decline from 2023 peaks)
• Senior: $150K–$200K (stable for in-demand specialties)
• Principal/Staff: $200K–$300K+ (increasing for AI/ML expertise)

Compensation Trends

Salary Adjustments Through Q3

Average tech salaries declined 8.5% through the quarter:

• July: $118K average
• August: $116K average
• September: $108K average

What Drove the Decline:

Market correction from 2021-2022 compensation inflation, particularly affecting mid-level positions. Senior and specialized roles maintained premium compensation while entry-level positions saw modest increases.

Compensation Transparency

Tech sector led in salary disclosure:

• July: 70% of postings included compensation details
• August: 73% of postings included compensation details
• September: 69% of postings included compensation details

Organizations offering transparent compensation ranges consistently received higher application volumes according to industry research.

Remote Work Positioning

Remote and hybrid options increased modestly in Q3, giving tech sector continued advantage over industries requiring on-site presence:

Posting Breakdown:

• Fully remote: ~35% of tech postings
• Hybrid (2-3 days): ~40% of tech postings
• On-site required: ~25% of tech postings

Candidate Preferences: Organizations offering remote options saw:

• Higher application volume
• Broader geographic candidate reach
• Improved offer acceptance rates

The Trade-Off:
Remote roles attracted more applicants but required stronger screening processes to identify self-directed, communication-proficient candidates.

Work Arrangement Distribution (September)

• Not Remote: 86% of postings (20,680 positions)
• Permanently Remote: 10% of postings (2,500 positions)
• Hybrid Position: 4% of postings (940 positions)

Trend Analysis:

Remote and hybrid options remained relatively stable through Q3, giving tech sector continued advantage over industries requiring on-site presence. The 14% combined remote/hybrid rate represents substantial flexibility compared to sectors like healthcare (99% in-person) or retail (100% on-site).

Strategic Recruitment Insights

What Worked in Q3

Compensation Transparency

Tech postings with disclosed salary ranges demonstrated the sector's leadership in pay transparency, with 69-73% of postings including compensation details throughout the quarter.

Data-Driven Job Distribution

Organizations using data-driven approaches to job distribution reported improved results.

Technical Assessment Early

Moving coding challenges or technical screens to earlier in process (post-resume, pre-interview) reduced wasted time on unqualified candidates.

Transparent Compensation Ranges

Tech postings with salary ranges received more applications than those without. Candidates evaluating multiple offers simultaneously demand upfront clarity.

Rapid Decision Cycles

Top performers like Meta (23 days) and Microsoft (24 days) maintained faster fill times than the 27-28 day average, suggesting streamlined interview processes attract and convert qualified candidates more effectively.

Geographic Targeting

Markets like San Francisco (14 days to fill) and Austin (18 days to fill) significantly outperformed the national average, indicating location-specific strategies improve hiring velocity.

Employer Brand Content

Engineering blogs, open-source contributions, tech stack transparency, and developer-focused content attracted passive candidates more effectively than generic job ads.

Clear Role Definition

Roles with lower reposting rates (Product Manager at 5.21%, Account Manager at 7.89%) suggest clear job requirements and accurate candidate targeting reduce wasted recruiting cycles.

What Didn't Work

Excessive Interview Rounds
Technical candidates balked at 6-8 interview rounds. Optimal: 3-4 focused conversations (phone screen, technical assessment, team fit, offer discussion).

Vague Job Descriptions
"Looking for rockstar ninja developer" language repelled qualified candidates. Specific tech stack, problems to solve, and team structure resonated better.

Slow Decision-Making
Tech talent moved to offer within days of final interview. Companies taking 7-10 days for decisions lost candidates to faster competitors.

Ignoring Portfolio/GitHub
Organizations requiring resume + lengthy applications ignored that developers showcase expertise through public code repositories and project portfolios.

Questions Tech Recruiters Need Answered

General Market Data Tells You:

• "Tech hiring slowed in Q3"
• "AI roles hard to fill"
• "Salaries declining for mid-level"

Recruitment Intelligence Tells You:

• "Competitor startups in your market offer $145K–$165K for mid-level data engineers"
• "Major tech companies each posted 50+ ML engineer roles in Q3"
• "Many competitor postings include equity/stock options in compensation packages"
• "Average time from posting to fill for senior backend engineers at similar-stage startups: 47 days"

The Difference:
Know exactly what tech talent sees when comparing opportunities. Stop losing candidates to better-informed competitors.

Q4 Technology Outlook

Expected Patterns

Continued Selectivity

The Q3 trend of maintaining open positions rather than compromising on quality will likely extend into Q4 as organizations prioritize precise technical fit over speed to fill.

Continued Skills-Based Hiring Growth

Expect majority of tech postings to emphasize skills over credentials by year-end as organizations prioritize demonstrated capabilities.

Compensation Stabilization

After an 8.5% quarterly decline, salaries should stabilize in Q4 as market corrections approach completion. Specialized roles (AI/ML, security, data engineering) will maintain premium compensation.

AI Role Competition Intensifies

Every company becoming "AI-first" will increase competition for ML engineers, AI researchers, and LLM specialists. Salaries for top talent will climb despite broader market moderation.

Remote Work Equilibrium

The 13-14% remote/hybrid rate appears to have reached a sustainable balance, with organizations maintaining flexibility for competitive positioning while requiring in-office presence for collaboration-intensive roles. Remote/hybrid percentages likely stable through Q4. Organizations that reduced flexibility saw talent attrition; those maintaining it gained competitive edge.

Transparency as Standard

With 70%+ of tech postings including compensation, salary disclosure has become table stakes rather than differentiator. Organizations without transparent pay ranges will face application volume disadvantages.

Technical Assessment Innovation

Take-home projects giving way to pair programming, real-world problem simulations, and portfolio reviews that respect candidate time.

Strategic Recommendations for Q4

Immediate Actions:

• Audit technical interview processes: Top performers fill roles in 14-24 days; organizations exceeding 35 days should streamline evaluation stages
• Benchmark compensation: Compare current offerings against the $108K-$118K average range for role-specific markets and seniority levels
• Clarify remote policies: Be explicit about work arrangements; ambiguity drives candidate drop-off
• Optimize job board allocation: Identify which technical boards deliver qualified candidates for your specific roles

Immediate Actions:

• Audit technical interview process: Eliminate redundant rounds; target 2-3 weeks total cycle
• Benchmark compensation: Compare current offers against competitor data for specific roles and locations
• Optimize recruitment approach: Identify which strategies deliver qualified candidates vs. wasting budget
• Clarify remote policy: Be explicit about flexibility; ambiguity drives candidate drop-off
• Showcase tech stack: Engineers want to know what they'll work with; transparency attracts quality talent

Strategic Initiatives:

• Build engineering brand: Invest in technical blog, conference talks, open-source contributions
• Partner with bootcamps: Alternative credential programs produce diverse, motivated talent
• Create skills pathways: Show how mid-level engineers advance to senior/staff roles
• Leverage employee networks: Engineer referrals deliver highest quality hires; incentivize participation.

The Intelligence Advantage for Technology

Technology recruitment requires real-time competitive insight that general market data can't provide. While industry benchmarks show broad trends, recruitment intelligence reveals market-specific opportunities for optimization.

Organizations using tech-specific recruitment intelligence have access to:

• Real-time market data for engineering hiring
• Make data-informed budget decisions
• Competitive positioning insights
• Market intelligence for strategic planning

Market-Level Data:

• "Tech sector posting volume stable in Q3"
• "Filled positions declined quarter-over-quarter"
• "Companies maintaining selective hiring standards"

Intelligence-Level Data:

• "Software Engineer positions in San Francisco average 36 days to fill at $175K compensation"
• "Microsoft fills roles 18% faster than industry average with 97% salary transparency"
• "Reposting rates dropped from 20% (July) to 6% (September), indicating improved candidate targeting"

The Difference:

Organizations with role-specific, market-specific, and competitor-specific data make faster, more informed hiring decisions because they understand:

• Exact compensation ranges competitors offer for identical roles
• Time-to-fill benchmarks for their specific technical positions
• Which job boards deliver qualified candidates vs. wasting budget
• Market-by-market hiring velocity and salary expectations

The new tech hiring equation: Microsoft fills roles in 24 days with 97% salary transparency. Meta averages 23 days with 100% compensation disclosure. Meanwhile, companies hiding salary ranges struggle at 50+ days to fill. Transparency isn't optional anymore—it's competitive advantage.

Take Action

Use This Data To:

1. Reset expectations on AI/ML/cybersecurity timelines (60+ days realistic)
2. Justify skills-based hiring approach with Q3 performance data
3. Optimize Q4 recruitment strategy based on market trends
4. Develop transparent compensation frameworks competitive with market

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Computer Software sector insights from Q3 2025 JobTarget Intelligence data