Although the IT job market has calmed in the past year, it remains tight even as several large IT firms have announced layoffs, according to the 2025 Workforce Planning Guide by Addison Group. Companies and candidates are both becoming more selective, the report said.

“Many candidates are waiting to make a move until they find the ‘perfect’ opportunity,” according to the report. “The good news for employers is that the overall quality of available talent has gone up, and accordingly, companies have adopted more selective hiring standards.”

Still, it cautioned against IT employers stretching out the interview process lest they lose top candidates.

The report also noted that IT candidates are looking at factors other than just pay.

“Although wages are still the top recruiting driver, candidates are also prioritizing culture and sometimes changing jobs for as little as a $10k increase if the fit is right,” according to the report. “After a few years of extreme salary increases, tighter budgets are prompting companies to turn their focus to selling key benefits, like healthcare insurance and 401(k)s, to compete for A-players.”

There has also been a shift in expectations around remote work, and fully remote is no longer the norm. Companies now want IT workers nearby and expect them in the office at least two to three days a week. The report cited Info-Tech research that found 47% of tech workers look at hybrid work options when evaluating a role.

Addison Group’s report also looked at hiring trends in other sectors including finance/accounting, HR, engineering and digital marketing.

Overall, the report said demand for top talent remains tight despite a labor market that has cooled. Employers and candidates are now taking much longer to make hiring decisions.

“Companies want more skills and loyal team members, and candidates want not only compensation but benefits and culture,” it said. “This has translated into longer interview processes that lead to extended job vacancies impacting productivity and morale.”

It also noted that jobs requiring AI skills can result in a 25% wage premium in some markets, citing PwC research.