Updated October 13, 2026. Data: U.S. Labor Department quarterly count of jobs and wages from employer tax records, first quarter 2026 vs. first quarter 2025. Second-quarter 2026 figures are due in December.
Private computer and IT services businesses (software developers for hire, IT consultants, systems integrators and computer support firms) employed about 2.37 million people in early 2026, down 1.6% from a year earlier. Jobs fell in 41 states. The biggest drops were in New Mexico (-11.5%), Wyoming (-11.1%) and District of Columbia (-9.8%), while Delaware (+7.4%), Montana (+3.5%) and New York (+2.4%) grew the most. If you are going out on your own as an IT consultant, compare LLC cost by state before you sign your first client.
Change in IT services jobs by state
The biggest employers are California (321,411), Texas (288,969) and Virginia (163,662).
State-by-state table
Click a column to sort. Jobs are the average of January, February and March.
| State | Jobs, Q1 2026 | Jobs, Q1 2025 | Change | Business locations | Average weekly pay |
|---|---|---|---|---|---|
| U.S. | 2,368,827 | 2,406,962 | -1.6% | 425,715 | $3,531 |
| Alabama | 26,371 | 26,216 | +0.6% | 4,495 | $2,384 |
| Alaska | 1,377 | 1,429 | -3.6% | 636 | $2,079 |
| Arizona | 39,994 | 40,437 | -1.1% | 9,398 | $2,941 |
| Arkansas | 10,527 | 10,558 | -0.3% | 4,428 | $2,226 |
| California | 321,411 | 324,065 | -0.8% | 38,627 | $5,401 |
| Colorado | 83,611 | 85,500 | -2.2% | 17,540 | $3,807 |
| Connecticut | 21,042 | 21,657 | -2.8% | 5,800 | $3,261 |
| Delaware | 6,007 | 5,594 | +7.4% | 3,690 | $2,583 |
| District of Columbia | 19,162 | 21,238 | -9.8% | 3,770 | $3,420 |
| Florida | 138,885 | 139,171 | -0.2% | 25,400 | $2,990 |
| Georgia | 81,940 | 84,179 | -2.7% | 14,827 | $2,873 |
| Hawaii | 4,960 | 4,890 | +1.4% | 1,365 | $2,638 |
| Idaho | 7,765 | 7,901 | -1.7% | 3,442 | $2,674 |
| Illinois | 84,106 | 84,369 | -0.3% | 14,799 | $3,082 |
| Indiana | 32,776 | 34,151 | -4.0% | 7,268 | $2,563 |
| Iowa | 11,739 | 11,880 | -1.2% | 3,269 | $2,594 |
| Kansas | 16,883 | 17,426 | -3.1% | 4,275 | $2,504 |
| Kentucky | 16,924 | 17,978 | -5.9% | 5,742 | $2,157 |
| Louisiana | 11,877 | 12,605 | -5.8% | 3,704 | $1,956 |
| Maine | 6,000 | 6,287 | -4.6% | 2,382 | $3,082 |
| Maryland | 74,956 | 81,319 | -7.8% | 11,230 | $3,016 |
| Massachusetts | 70,556 | 73,347 | -3.8% | 11,404 | $4,772 |
| Michigan | 45,907 | 46,646 | -1.6% | 10,140 | $2,779 |
| Minnesota | 33,357 | 34,666 | -3.8% | 7,831 | $3,161 |
| Mississippi | 7,602 | 7,514 | +1.2% | 3,008 | $1,839 |
| Missouri | 38,692 | 38,660 | +0.1% | 8,183 | $2,344 |
| Montana | 5,678 | 5,486 | +3.5% | 2,648 | $2,761 |
| Nebraska | 12,120 | 12,352 | -1.9% | 3,082 | $2,352 |
| Nevada | 11,539 | 11,708 | -1.4% | 3,450 | $2,899 |
| New Hampshire | 14,321 | 14,514 | -1.3% | 4,374 | $4,149 |
| New Jersey | 74,849 | 77,133 | -3.0% | 10,523 | $3,195 |
| New Mexico | 6,105 | 6,899 | -11.5% | 1,739 | $2,027 |
| New York | 126,806 | 123,807 | +2.4% | 18,329 | $4,794 |
| North Carolina | 75,753 | 75,880 | -0.2% | 14,839 | $2,826 |
| North Dakota | 2,389 | 2,472 | -3.4% | 818 | $2,185 |
| Ohio | 66,904 | 69,121 | -3.2% | 13,372 | $2,489 |
| Oklahoma | 11,517 | 11,871 | -3.0% | 3,525 | $2,082 |
| Oregon | 17,271 | 17,677 | -2.3% | 4,357 | $3,095 |
| Pennsylvania | 70,672 | 73,724 | -4.1% | 12,734 | $2,979 |
| Rhode Island | 8,001 | 8,074 | -0.9% | 2,725 | $2,873 |
| South Carolina | 24,001 | 24,324 | -1.3% | 7,496 | $2,650 |
| South Dakota | 3,356 | 3,499 | -4.1% | 1,264 | $2,318 |
| Tennessee | 26,301 | 26,790 | -1.8% | 6,930 | $3,058 |
| Texas | 288,969 | 286,113 | +1.0% | 36,078 | $3,249 |
| Utah | 34,343 | 34,669 | -0.9% | 5,787 | $3,222 |
| Vermont | 4,106 | 4,317 | -4.9% | 1,986 | $3,478 |
| Virginia | 163,662 | 170,966 | -4.3% | 18,892 | $3,258 |
| Washington | 71,301 | 70,534 | +1.1% | 13,496 | $4,749 |
| West Virginia | 6,361 | 6,350 | +0.2% | 2,143 | $2,049 |
| Wisconsin | 26,650 | 27,393 | -2.7% | 7,471 | $2,653 |
| Wyoming | 1,425 | 1,603 | -11.1% | 1,004 | $6,804 |
Possible reasons for the changes
The data shows where jobs changed, not why. No single cause explains it, and different factors likely matter in different states:
- Federal contract changes. Several of the biggest drops are in places with lots of federal IT contracting, like Maryland, DC and New Mexico, where contract cuts and delays in 2025 and 2026 may have played a part.
- Higher interest rates and tighter budgets. Companies have delayed some IT projects as borrowing costs stayed high.
- AI and automation tools. Some firms say coding and support tools let them do more with smaller teams, though how much this affects hiring is still debated.
- Offshoring and consolidation. Some work moves overseas or to larger firms after mergers.
- Small-state swings. In states with few IT jobs, one company opening, closing or moving its payroll can shift the percentage a lot.
See also federal contracts for service businesses by state and work from home by state.
For IT consultants and small tech firms
- Protect your work. Many clients require professional liability (errors and omissions) coverage before signing a contract.
- Set up the business properly. An LLC keeps client contracts separate from your personal assets.
Running an IT or consulting business?
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About the data
- Source: U.S. Labor Department, Quarterly Census of Employment and Wages, industry 5415 (computer systems design and related services), privately owned businesses, first quarter 2026 and 2025.
- Jobs are the average of the three monthly counts. Government IT staff aren’t included.
- State is where the job is located. Remote workers are usually counted where the employer reports them.
- Figures are preliminary and may be revised.
Sources
Cite this data
Reporters and bloggers may use these numbers and charts. Please credit StartBusinessByState and link to this page.
Source: StartBusinessByState, “Computer and IT Services Jobs by State (Q1 2026),” https://startbusinessbystate.com/it-services-jobs-by-state/ (updated October 13, 2026).
FAQ
Are IT jobs declining?
Slightly. Private computer and IT services employment was 1.6% lower in the first quarter of 2026 than a year earlier, according to the U.S. Labor Department. Jobs fell in 41 states.
Which state lost the most IT services jobs?
In percentage terms, New Mexico (-11.5%), followed by Wyoming (-11.1%) and District of Columbia (-9.8%).
Where are IT services jobs growing?
Delaware (+7.4%), Montana (+3.5%) and New York (+2.4%).
Is AI causing the decline?
The data can’t say. Federal contract changes, interest rates, AI tools, offshoring and company-specific moves are all possible factors, and they likely differ by state.
Where is this data from?
The U.S. Labor Department’s quarterly count of jobs from employer unemployment-insurance tax records.
Last updated October 13, 2026 by StartBusinessByState.