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Q1 Market Update

March 18, 2025

What IT Professionals Need to Know in 2025

By Zac Shaw

The last time I wrote a blog for ALTA was in November, when I discussed things to be thankful for as 2024 ended. One bullet point I highlighted and fully believed in was, “A New Year Brings New Opportunities.” However, as we move into 2025, it seems I might have spoken too soon. The “New Opportunities” haven’t materialized for most people just yet—so should we be concerned? Let’s take a look at a few things affecting the job market in March 2025 and beyond.

It’s safe to say that everyone knew things would change once President Trump took office on January 20. However, I’m not sure many anticipated that hiring and spending at the federal level, as well as in organizations heavily reliant on federal funding, would essentially come to a halt overnight. Recently, a colleague with 25 years of experience supporting federal projects expressed how she thought she had the most stable business, only for everything to change following the recent cuts from DOGE.

As a company based in the DC area, ALTA has witnessed these cuts and the effects of the federal hiring freeze firsthand. Many IT contractors we’ve worked with for years, and who have rarely had trouble finding jobs, are now wondering where their next paycheck will come from. While it feels challenging right now, I still believe IT professionals have a bright future in DC and elsewhere. The 90-day freeze is already more than halfway over, and while the federal job outlook may not be the same as it was before, IT professionals still have a solid future. While the federal government is focusing on cutting spending, I believe they will still invest in technology. Systems, networks, and software need to be built and upgraded to ensure government agencies operate effectively. In time, this should create excellent opportunities for IT professionals in the DMV area.

Just as we’ve seen our federal business slow this year, we’ve also noticed an uptick in business from commercial clients. As I mentioned in the November blog, commercial companies tend to hire in Q1 once new budgets are approved. While the news focuses on federal cuts and layoffs, commercial businesses are hiring rapidly, as long as they aren’t reliant on government funding.

If you’re currently looking for a new role in IT and have mostly worked in the federal space, it might be time to branch out. Industries like finance, oil & gas, healthcare, and engineering are still going strong. Both large and small tech companies will increasingly look to leverage AI in the coming years. With a little research, you might discover exciting opportunities you hadn’t considered before.

Here are some steps to take if you are affected by a hiring freeze or layoff:

  • Network: reach out to those that can best speak on your skills for advice.
  • Research: find companies and organizations that are growing and align with your values.
  • Prepare: get your resume updated and reviewed.
  • Connect: reach out to a recruiter; even if you don’t end up working with one, they can provide job market insight, resume recommendations, and interview tips.

While 2025 has started off on a challenging note for those primarily in the federal space, other industries are growing and hiring. There are fantastic companies out there looking for skilled IT professionals. With some research—and perhaps some assistance from an ALTA recruiter—I am confident that the outlook for 2025 remains positive.

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