The tech hiring market is cooling. That’s the headline from a recent report from Indeed Hiring Lab. The report looks at US labor-market trends, but the lessons are important for MSPs everywhere
US tech hiring is slowing down, but demand remains uneven
According to Indeed’s 2026 Jobs & Hiring Trends Report, job postings for key technology roles have fallen to roughly one-third below pre-pandemic levels. This decline reflects a broader “low-hire, some-fire” mode, according to the report’s authors.
Data and analytics job posts fell 13% compared with 2024, while IT systems and solutions postings dropped more than 9%.
Within that decline, demand has not fallen evenly. Entry-level and early-career roles—traditionally the pipeline for junior engineers, analysts and support staff—seem to be disproportionately affected.
There are still pockets of robust demand—especially for certain skill sets. For example, a separate industry snapshot from Experis shows that many US employers report strong demand for skilled tech talent, particularly in areas tied to digital transformation and emerging technologies.
Together, these patterns point to a labor market in flux—one where volume hiring has cooled, but quality hiring—especially for niche, specialized skills—remains competitive.
What this means for MSP staffing strategy
For MSPs, whose value hinges on technical know-how, reliability and responsiveness, these trends tell us some important things.
1. Don’t count on a universal ‘talent market flooding’—but expect selective tightening
The post-pandemic “war for talent” may have eased, but that doesn’t automatically mean hiring will be easier.
MSPs that rely on generalist IT support may find competition for junior staff less intense. However, if you need staff with expertise in areas like cybersecurity, advanced infrastructure, automation, or emerging tech, you’ll likely still be competing hard.
2. Specialization and skills-first hiring become assets
Because demand is narrowing around certain skill sets, MSPs should consider adjusting their hiring filters. Instead of hiring primarily based on generic job titles, a skills-first or capabilities-based approach may be more effective.
The Indeed data suggests that many employers are already leaning this way, prioritising demonstrable skills over traditional credentials.
For MSPs that could mean hiring people with niche expertise (such as Cloud infrastructure, security, AI-adjacent tooling) even if they don’t have conventional CVs—or focusing on internal training to build those skills.
3. Think longer-term, flexible staffing & reskilling strategies
The cooling of broad tech hiring might encourage MSPs to rethink staffing models. For example:
- Invest more in reskilling or upskilling existing staff to meet evolving tech demands (rather than always hiring new staff).
- Build flexible staffing strategies, such as blended senior-junior teams, contractors, or on-demand specialists, to avoid over-committing in uncertain hiring times.
- Prioritise retention, internal mobility and professional development: locking in your existing talent could be a better hedge than trying to compete in a tighter hiring market.
4. Use caution when projecting demand—but read signals for future opportunities
For European MSPs especially, the US data is a cautionary tale: just because tech hiring surged after the pandemic doesn’t mean that volume-hiring will continue indefinitely. As macroeconomic uncertainty and new technologies shift how companies invest in talent, MSPs need agile workforce plans.
What MSP leaders should do now
If you lead or manage an MSP—or have a hand in hiring—here’s a checklist of sensible moves:
- Audit your current skill gaps: do you have the in-house expertise for Cloud, security, automation, compliance, or are you relying on generalist IT staff that may no longer meet the evolving demand?
- Invest in training and upskilling: develop junior staff or generalists into specialists; embrace certifications, continuous learning and cross-skilling.
- Review hiring strategy: shift toward skills-first hiring, open-job descriptions, flexible staffing (contract/part-time), rather than relying solely on traditional hiring paths.
- Prioritise retention, career development, and workforce flexibility: ensure your staff feel valued, have growth paths, and are encouraged to build higher-value skills.
- Align service offerings to market demand: with fewer people chasing generalist roles, there may be a market premium for specialised MSP services.
MSPs could come out stronger
The Indeed 2026 Trends Report shows that the pandemic-era surge in tech hiring has slowed—but demand hasn’t vanished. For MSPs in the US and Europe, this means recalibrating staffing strategies.
For European MSPs, the report offers a useful early warning: the “war for talent” may be shifting. If you double down on skills, flexibility, retention and internal growth, you might not just weather the turbulence—you might come out stronger.
Check out our interview with netgo’s Sven Fürth for a fresh angle on why people are the key to differentiating your MSP.
