Technical graduates, who were once almost guaranteed a role, now face a tough job market. Competition for roles is increasing with the rise of AI, offshoring, and technology-related attrition. Remote work has also made it difficult for companies to train graduates, leading some companies to invest elsewhere.
Thank you for registering!
Access your favorite topics in a personalized feed on the go. Download the app
By clicking “Sign Up”, you agree to our Terms of Service and Privacy Policy. You can opt-out at any time by visiting our settings page or by clicking “unsubscribe” at the bottom of the email.
When Alex Diaz decided to major in computer science, he was looking for job security.
“I chose computer science for insurance,” Diaz, who just graduated from the University of Maryland, told BI. “I thought I would be able to find a job once I graduated, because every industry needs computer scientists these days.”
Four years later, Diaz isn’t feeling so confident.
“I’ve applied to hundreds of positions, positions that I think I’m a good fit for, and I never hear back,” he said. “I think this is consistent with the experience of many people.”
Although Diaz graduated from the University of Maryland this summer with a 3.83 GPA and technically only been out of work for three months, he says the real story is more complicated.
“I’ve been job hunting since my fourth year of college,” he says. “We’re actually a year behind because we’re supposed to get jobs and graduate.”
“All technical graduates are in a tough spot right now. I think it’s almost impossible to find a job without referrals,” he added.
Although the U.S. job market is improving, experts say tech graduates are still struggling and will continue to do so for some time.
James O’Brien, a computer science professor at the University of California, Berkeley, told BI that he has seen the technology job market shrink and is unlikely to see it improve any time soon.
While a technical degree once guaranteed graduates at least one great job offer, many students now struggle to find work, he said.
O’Brien puts much of the blame on AI and its impact on the labor market, particularly at lower levels of employment. “Even at higher levels, you tend to need fewer people because people are more efficient,” he said.
“It’s like this perfect storm of new technology, offshoring and remote employment,” he said. “I think students realize that the job market is changing.”
Struggles of graduates
A study by payroll service company ADP found that hiring for some technology jobs, particularly software developers and engineers, is declining.
Related articles
ADP tracked employees at 6,500 companies, including more than 75,000 software developers, from January 2018 to January 2024.
According to the study, developer employment increased from January 2018 to November 2019, but has continued to decline since then. The study found that employment of software developers sharply declined in January 2022 and has continued to decline since 2020, with some fluctuations.
It also doesn’t help that a technical degree has traditionally been considered a surefire way to secure employment. According to data released by the Federal Reserve in February 2024, the unemployment rate for computer science graduates is 4.3%, higher than for philosophy graduates.
“We’ve definitely seen a slowdown in hiring this year,” Cory Cantenga, LinkedIn’s head of Americas economics, told BI. “Interest rates are starting to rise, employment is starting to slow down, and employment is gradually slowing down starting around the spring of 2022.”
He said industries such as high-tech, which have benefited from years of ultra-low interest rates, are most affected by economic fluctuations.
“The economic slowdown has hit entry-level workers the hardest, and recovery will take time,” he said. “If companies are looking to cut costs, they will leverage experienced workers to fill some of the entry-level jobs until they can hire more entry-level workers.”
“I joke about how much my degree is worth.”
Alec Wolyniec, a software developer with five years of experience, said he has noticed that opportunities have changed significantly over the past few years.
He said interviewing as a junior engineer in 2020 was much easier than interviewing as an intermediate candidate in 2024. Wolyniec graduated from Emory University in 2017 with a degree in computer science, but has since seen job opportunities dry up.
“I enjoyed computer science, but I did it as something more hands-on because I felt it would be a solid career path,” he said. “Now I find myself joking about how much my degree is worth.”
Woliniec said that by 2023, it will be dramatically harder to get a job in the technology industry. He said he no longer hears back from the jobs he applied for.
“That was a bit of a shock,” he said. “I also no longer receive messages from recruiters on LinkedIn most weeks like I used to.”
consecutive layoffs
After two years of brutal layoffs, demand for tech workers still hasn’t returned to pre-pandemic levels.
According to LinkedIn data, the number of applicants per technology, information, and media job on the site has increased from five to seven over the past two years.
Hiring in the tech sector has stabilized since last summer, but has not yet returned to pre-pandemic levels, according to LinkedIn. Since the summer of 2018, hiring for “information technology” roles has declined by 19%, according to data provided by the job site.
The tech industry is also experiencing record layoffs, flooding the market with more qualified employees looking for new roles.
In 2022, the tech industry laid off 263,000 workers, a record number of layoffs for the sector. The layoffs will continue into 2023, with an additional 262,735 workers laid off by the end of the year, according to Layoffs. By the way.
Layoffs appear to be slowing, but remain high in traditionally stable sectors. As of October 2024, 457 tech companies have laid off 139,534 employees this year, according to Layoff Tracker.
Alex Hernandez, a technology recruiter and former Twitter employee, blames the decline in job opportunities on increased automation, a reassessment of workforce needs post-pandemic, and tech companies’ emphasis on efficiency.
“Certain areas like data science and AI are growing, while others are shrinking,” he told BI.
“Technical layoffs in 2023 in particular had a ripple effect.” Initially, it led to a glut of talent in the market and increased competition for open positions. However, these layoffs have caused companies to re-evaluate their hiring strategies and focus on roles that provide an immediate return on investment,” Hernandez added.
AI anxiety
Some believe the recent rise of AI is also having an impact on entry-level employment.
“Many tasks that previously required junior developers or data analysts are being automated. This means entry-level roles are becoming more technical and demanding.” Hernandez said.
Some graduates say they are concerned about the impact AI automation will have on employment options, but the data is not yet clear on how many entry-level jobs are actually being replaced by new technology.
“It’s certainly possible that AI is playing a role in what’s happening in the labor market, but I think it’s too early to tell,” Kantenga said. “But at this point, there is not much argument that AI is eliminating roles for entry-level workers.”
There is also a problem with the atmosphere among job hunters. According to LinkedIn’s Workforce Confidence Index, worker confidence in finding and keeping a job is at a four-year low, and Gen Z workers are especially worried about their jobs. .
Gen Z feels overwhelmed
Changes in the way we work can also pose challenges for new graduates.
According to a LinkedIn survey, 73% of Gen Z professionals around the world feel overwhelmed by the pace of change in the workplace, and 55% of Gen Z workers feel overwhelmed by the pace of change in the workplace. It turns out that people are worried about being left behind because of how quickly things are changing.
Chris Abbas, founder and CEO of technology recruiting platform Talentful, said the rise in remote work is also making it harder for companies to train new hires.
“As many companies move to WFH, it becomes increasingly difficult to promote new graduates with no work experience and enable them to be productive in their new roles,” he said.
“Graduates require a lot of coaching and training during the first three to six months in the role, which is very difficult to do remotely. Companies need to invest in other ways to do this. “We are choosing to avoid risk and hire experienced personnel,” he added.
