SE Job Postings Rebound Slightly, But Remain Depressed
Software engineering job postings are up 15% from their 2025 lows, offering a glimmer of hope in the tech job market. However, the numbers are still stark, remaining 70% below the peak hiring frenzy of 2022. The market shows a split, with AI creating high demand for specialists while simultaneously carving out more traditional legacy roles.
The hiring frenzy of 2022 was fueled by a pandemic-driven push for digitization and a long period of near-zero interest rates, which caused software development job postings to surge to 350% of early 2020 levels. When economic conditions shifted, the correction was swift, leading to massive layoffs across the tech sector, with approximately 127,000 U.S. tech workers laid off in 2025 alone. This influx of experienced talent has made the market decidedly top-heavy. Hiring has become more selective, with companies prioritizing senior engineers who can deliver immediate impact with less oversight. As a result, large tech firms have scaled back entry-level hiring; new graduates accounted for only 7% of new hires in 2025, a 25% drop from 2023. The demand for AI specialists is not just a trend but a seismic shift with significant financial incentives. In 2025, the number of job postings in the AI category increased more than fourfold. Roles requiring AI skills can command salaries up to 28% higher on average, with some entry-level AI positions paying over 128% more than their non-AI counterparts. For developers, AI is increasingly becoming a standard tool of the trade rather than a direct replacement for their roles. AI coding assistants are automating routine tasks, allowing engineers to offload boilerplate code generation and focus on higher-value work like system architecture, security, and complex problem-solving. This shift elevates the engineering role, demanding a stronger focus on design and critical evaluation.
