Why Is it So Hard to Recruit Technical Talent in These 8 Markets?
If finding high-skill talent feels like you’re swimming upstream, that’s because it is. Demand for AI-related roles, cybersecurity jobs, and data scientist positions is growing rapidly (McKinsey, CyberSeek, BLS). Plus, the ongoing need for engineers, manufacturing workers, and a strong contingent labor force hasn’t softened.
But if you’re situated outside the coastal hubs, the talent pools for these roles can be thin. Specifically, we’ve seen companies in Texas, Tennessee, South Carolina, North Carolina, Florida, Minnesota, Kentucky, and Upstate New York struggle to keep up with this demand. If you’re in one of these states, you’re probably feeling this crunch right now.
In this article, we’ll walk through why these markets are tight, which roles are the hardest to hire for, and strategies to help you recruit technical talent faster.
Key Takeaways:
- High demand for critical roles usually causes two problems: long hiring times and inability to meet fill rates
- AI, IT, engineering, and manufacturing are particularly difficult to staff right now, especially in Tennessee, Florida, Kentucky, Texas, Minnesota, Upstate New York, and North and South Carolina
- Success in staffing these hard-to-fill positions requires a combination of deep industry expertise, advanced technology, and trust-based partnerships to accelerate talent sourcing and placement
Why Is There a Nationwide Technical Talent Shortage?
U.S. companies are struggling right now to fill high-value roles in AI, IT, engineering, manufacturing, and professional services. Here are some of the top reasons why:
- AI adoption is increasing across tech faster than IT professionals can be trained on the skills needed to meet those needs. In fact, 60% of leading data and analytics professionals cite lack of employee skills and training in AI as a primary reason for unpreparedness for AI initiatives
- Manufacturing jobs often require specialized skills and credentials, creating conditions for a tighter talent pool
- An anticipated 7 million infrastructure workers will be retiring in less than a decade
Top 8 Most Challenging Talent Markets in 2025
Although the skilled labor shortage is a felt problem nationwide, it’s more acute in Texas, Tennessee, South Carolina, North Carolina, Florida, Minnesota, Kentucky, and Upstate New York. Let’s look at the specific dynamics of each market to see why.
1. Tennessee
Tennessee is facing an overall tighter labor market than the national average. We’ve seen that this phenomenon is even more pronounced among AI, IT, and other technical roles. What’s more, the Tennessee market is facing more demand for practical AI applications, like business process improvement, vs. advanced research roles.
2. Florida
Back in 2023 eMerge Americas reported that Florida received a whopping $2.41B in venture capital money, with an expected job growth rate of 27% by 2030. As a result, companies are scrambling to not only place roles, but build the critical staffing infrastructure needed to meet that demand in the future.
3. Kentucky
IT hiring in Kentucky is ramping up. However, the state’s employers are very selective in their hiring practices, and are more likely to hire candidates with specialized skills. So while the actual number of job seekers may be strong, the number who can meet employers’ stringent requirements is much narrower.
4. Texas
Dallas and Austin are both booming tech hubs, in many ways rivaling their coastal competitors. But with an impressive 3.8% unemployment rate in Dallas and 3.2% in Austin (well below the national average), these cities are experiencing tight labor markets and facing challenges in placing critical AI and IT talent.
5. Minnesota
Earlier this year the state faced historically low job fill rates, a trend that seems to be holding steady through June. Given the growth of the state’s medtech and broader IT market, this makes the state a particularly difficult place to source high quality talent.
6. Upstate New York
According to a widely cited CenterState CEO report, employers in Upstate New York report limited local talent pools. A likely cause of this tight market is the prevalence of more competitive positions in nearby New York City.
7. North Carolina
As companies like Cisco, IBM, Fidelity, and other leaders continue opening offices in Raleigh’s Research Triangle park, demand for technical workers is only going to increase. Yet North Carolina is not a typical or traditional tech hub, making the number of qualified workers lower than the demand.
8. South Carolina
Although South Carolina doesn’t have an exceptionally tight labor market, we’re still seeing demand for manufacturing talent outpacing the number of qualified workers. This is likely due to major long-term projects like the Carolina Crossroads, I-95 Widening and Improvements Project, and more.
Top In-Demand Roles in These 8 Talent Markets
Based on our deep experience in these and other markets, here are some of the most high-demand roles we’re seeing in the market right now.
1. Cloud Architect
Companies in Texas, Florida, and North Carolina are accelerating their cloud migrations and digital transformation, driving high demand for cloud architects to design secure, scalable cloud environments. Likewise, Upstate New York and Minnesota see growing demand for cloud roles as financial services and health care sectors shift to remote operations.
2. Cybersecurity Engineer
The rise of ransomware and compliance mandates (healthcare, finance) are especially acute in Texas, North Carolina, Florida, Upstate New York, and Minnesota, where major corporate clusters seek to protect sensitive data.
3. AI Engineer
Companies in Texas, North Carolina, Upstate New York, and Florida are investing in automation, data analysis, and intelligent solutions across logistics, finance, and manufacturing, driving up the need for AI engineers.
4. Software Engineer or Full-Stack Developer
As tech firms grow and companies continue hiring remote workers, the need for in-house software engineers and full-stack developers will remain strong. Texas, Florida, and North Carolina are showing particularly high demand for these roles.
5. Industrial Machinery Mechanic
Manufacturers in South Carolina, North Carolina, Tennessee, Kentucky, and Upstate New York are following the nationwide trend toward plant modernization and automation. This has increased the need for skilled industrial machinery mechanics who can operate both traditional and automated equipment.
6. Automation Engineer
Advanced robotics and process automation has caused a surge in demand for automation engineers. We’re finding this demand to be exceptionally strong in the Carolinas, Kentucky, and Texas, where automation is enhancing productivity and addressing labor shortages.
7. Manufacturing Engineer
Reshoring 2.0 is bringing manufacturing jobs back to the U.S. As a result, companies in Florida, Tennessee, Kentucky, South Carolina, and Upstate New York need competent manufacturing engineers to meet the demands of their automotive, aerospace, and consumer goods industries.
8. Data Scientist
As AI adoption continues to accelerate, the need for clean, accurate data is becoming even more acute. States like Minnesota, North Carolina, Texas, and Upstate New York have robust financial and healthcare markets, where data governance is mission critical.
9. Electrical Engineer
Grid modernization, renewable energy expansion, and manufacturing automation are increasing the need for electrical engineers across all eight markets. This trend will only continue as companies continue investing in data center expansion—which require high amounts of energy to function—as the AI race accelerates.
How to Navigate These Challenging Talent Markets
Overall, the U.S. labor market remains cool. But in key geographies and among specific, high-demand skills, things are white hot. If you’re hiring in the eight states listed above, you’re probably seeing your typical recruiting and staffing processes struggle to keep up.
That’s why PEAK is proud to serve these markets. Based on our 50+ years of experience, we’ve learned that placing hard-to-fill roles requires:
- Deep industry experience and expertise—not the typical, transactional staffing agency
- Advanced technology and automation to accelerate candidate sourcing, communications, and pipelining
- Trust-based partnership with a diverse network of MSP providers and individual candidates to increase callbacks
If you’re in one of these markets, or if you’re struggling to place one of those high-demand roles, get in touch with PEAK to start making placements quickly.