It’s not your imagination—entry-level tech hiring has taken a sharp downturn. For graduating seniors, breaking into the tech industry now looks harder than ever. Aneesh Raman, LinkedIn’s chief economic opportunity officer, recently told The New York Times that the “bottom rung of the career ladder” is “breaking,” largely due to the growing impact of AI.
According to a report by venture firm SignalFire, hiring of recent graduates by the 15 largest tech companies has dropped more than 50% since 2019. Before the pandemic, entry-level workers made up around 15% of Big Tech hires. Today, that number sits at just 7%. This significant decline underscores a larger structural shift in how companies approach workforce development.
However, there’s still a silver lining. The tech industry isn’t shrinking—it’s evolving. Instead of concentrating tech roles within major tech firms, job opportunities are spreading across sectors like healthcare, finance, and retail. The demand for tech talent remains robust. In fact, the total number of tech jobs is expected to rise from 6 million in 2024 to 7.1 million by 2034.
Currently, software developers face a relatively low unemployment rate of 2.2%, which is about half the national average. So while breaking into the industry might be tougher, skilled professionals are still in high demand.
But here’s the catch: AI expertise is now a key hiring criterion. A recent survey cited in The Wall Street Journal found that 87% of hiring managers prioritize AI experience. Moreover, nearly 25% of current tech job listings require AI-related skills. This shift means that today’s graduates need to move beyond basic programming and understand how to work with, or build, AI-powered systems.
In short, while entry-level tech hiring at big-name firms is slowing, the broader industry continues to grow. For job seekers, the message is clear: adapt to the new landscape by acquiring AI-related competencies, and consider tech roles in non-traditional sectors.
