A new iCIMS report reveals that tech hiring is growing in healthcare and manufacturing, despite ongoing layoffs at major technology firms. This shift requires HR leaders to adjust their recruitment strategies to capture technical talent outside traditional tech hubs.
Healthcare and manufacturing drive tech hiring
Healthcare and manufacturing sectors are absorbing technical talent at an increasing rate. Since May 2025, tech hiring in healthcare has increased by 8 percent, while manufacturing has seen a 4 percent rise.
The healthcare industry is scaling digital transformation initiatives, including AI-enabled diagnostics and modernized patient data systems. Manufacturers are similarly directing funds toward automation and smart factory investments.
Demand outpaces candidate supply
The demand for specific technical roles is accelerating year-over-year. Computer programmers represent the fastest-growing occupation with a 35 percent increase. Other growing roles include software developers at 28 percent, database administrators at 27 percent, and computer and information systems managers at 22 percent.
This growing demand coincides with a shrinking applicant pool. While job openings grew 9 percent year-over-year, application volume dropped 11 percent from the previous year. Overall hiring rose by only 1 percent, struggling to rebound from a sharp decline in 2025.
Reevaluating candidate pipelines
With applicant volume shrinking, organizations must find smarter ways to source and communicate with candidates. "The tech layoff headlines can be jarring, yet they mask an important shift: tech talent is moving from a handful of large providers into the broader economy," said Trent Cotton, head of talent insights at iCIMS.
Cotton advised companies to extract more value from existing contacts rather than relying solely on new applicants. "When applicant volume is shrinking, the fastest win is to unlock more value from candidates you already know," he said. "Treat silver medalists and near-misses as a primary pipeline and keep them warm with simple, always-on nurture."
In response to this talent crunch, iCIMS urged organizations to invest in smarter sourcing and stronger candidate communication. HR professionals can address this by adopting AI for Human Resources tools to automate outreach and keep previous applicants engaged.
Why this matters for human resources professionals
HR teams can no longer rely on high application volumes to fill technical roles. You must actively manage your existing talent pool. Treating past finalists as a primary recruitment channel requires systematic follow-up and consistent communication, turning a shrinking applicant market into a manageable pipeline.
Your membership also unlocks:
