The rise of AI has dramatically shifted the tech job market, leaving many computer science graduates struggling to find work. What’s behind the AI-driven hiring freeze?
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| AI’s rise in the tech industry has led to fewer entry-level job opportunities for new computer science graduates. Image: CH |
Tech Desk — September 1, 2025:
The world’s job market for computer science and software development graduates has drastically shifted, and many fresh-faced tech professionals are feeling the heat. As AI increasingly assumes roles traditionally filled by human workers—especially in the realm of coding and software development—new graduates are facing a cold reception in the job market.
Graduates with degrees in computer science are finding themselves in an unprecedented struggle to secure their first positions, even though the tech industry had once been seen as a guaranteed path to employment. From the U.S. to Europe, young professionals are applying to dozens of positions without success, left wondering: why has the hiring landscape changed so rapidly?
Recent data paints a grim picture for new graduates. According to a report by Oxford Economics, employment for computer science and mathematics graduates has dropped by 8% since 2022. Furthermore, a staggering 71% decrease in job listings for software development roles has been recorded on job platform Indie between February 2022 and August 2025, according to the Federal Reserve Bank of St. Louis.
This decline is due in part to economic factors, but AI’s influence is perhaps the biggest game-changer. Companies, from tech giants like Microsoft to smaller startups, are utilizing AI-driven tools to handle basic coding and software development tasks that would traditionally require junior engineers. As a result, the demand for entry-level roles has dramatically decreased.
On one hand, AI presents a wealth of opportunities, with its potential to transform entire industries. On the other hand, it is also creating a significant barrier to entry for new tech professionals. Take Microsoft, for instance. Despite reaching a market value of $4 trillion, the company has slashed its workforce by 9,000 employees. CEO Satya Nadella confirmed that AI now handles 30% of their code, reducing the need for human coders.
For recent graduates like Abraham Rubio, a computer science major from Bloomfield College in New Jersey, the shift feels particularly harsh. Despite applying for more than 20 jobs over the last few months, Rubio has heard nothing back. “I check LinkedIn almost daily for opportunities, but most companies don’t respond,” he says.
According to a report from Oxford Economics, the unemployment rate for computer science and engineering graduates is notably higher than the national average. Computer science graduates now face a 6.1% unemployment rate, while computer engineering graduates are at 7.5%. These figures are starkly higher than fields like English, where the unemployment rate is around 4%. The disparity has caused widespread frustration among students and graduates, who are questioning the viability of their degree in today’s job market.
Many are turning to social media to express their concerns. A TikTok user known as ‘Queenofslack’ shared her frustrations, writing: “Studying computer science is hard, and there's a huge uncertainty about employment in the field.”
Faced with the challenge of preparing students for a rapidly changing job market, educational institutions are evolving. At the University of Washington, computer science courses are increasingly focused on AI integration, preparing students for a job market where understanding AI tools is as important as coding itself. However, AI usage in introductory courses remains largely banned to preserve the fundamentals of traditional programming.
Coding boot camps are also adapting. Daniel Grassi, CEO of General Assembly, explained that the new trend isn’t just about training software engineers; it’s also about equipping key managerial and technical roles—such as CIOs and HR managers—with AI skills to ensure companies can maximize their AI capabilities.
Experts suggest that the impact of AI on the job market is unlike previous technological shifts. Kyle Holm, an employment expert, believes the rise of AI represents a departure from the way companies have operated in the past. “Now companies want to work with smaller teams, and AI enables them to do more with less,” he said.
Deepak Singh, an Amazon engineer, underscores that the need for human creativity and problem-solving won’t disappear. “AI will increase our need for thinking and creativity,” he says, highlighting that the role of engineers is evolving, not disappearing.
David Barazas, a veteran software engineer, puts it bluntly: “AI won’t replace you as an engineer, but an engineer with AI can replace you.” This statement captures the heart of the issue for new graduates. In today’s competitive job market, understanding AI and its integration into software development is becoming an essential skill for future engineers. Those who embrace AI will remain relevant, while those who don’t may face an uphill battle to land a job.
The rise of AI presents both a challenge and an opportunity for computer science graduates. While it has undoubtedly created a tougher job market for newcomers, it also offers the potential for those who adapt to a changing landscape. Graduates must evolve and integrate AI tools into their skill set to remain competitive.
As the tech industry continues to innovate, the key to success lies in adaptability and a willingness to learn. The future of computer science isn’t just about writing code—it's about creating intelligent, AI-enhanced solutions that push the boundaries of what technology can achieve. For new graduates, the question isn’t whether AI will change their careers; it’s how they can leverage AI to enhance their potential in this new era of work.