The hiring landscape for new graduates in the tech industry has taken a significant downturn, with the 15 largest tech companies reducing their hiring of new grads by over 50% since 2019, as reported by VC firm SignalFire. Amidst a backdrop of economic uncertainty and significant layoffs across the sector in 2023, hiring for mid- and senior-level positions rebounded while entry-level roles became scarce. Recent census data highlights that the unemployment rate for recent graduates has reached an alarming high compared to the overall unemployment rate.
The current job market presents notable challenges, prompting graduating seniors to feel apprehensive about their career prospects. Reports from graduates indicate a stark contrast to the opportunities available just a few years ago. Johnn Cabacungan, a 21-year-old media studies major, shared his anxiety despite multiple interviews with major tech firms; he remains uncertain about securing a definitive role. Similarly, Billy Meneses, a public policy student at Stanford University, voiced his concerns, stating, “Even at a place like Stanford, it may be easier, but it’s still hard if you aren’t developing hard skills.”
Even those graduates who have managed to secure jobs are expressing concerns about the job market’s current state. Manas Chithirala, an industrial engineering major, described himself as “getting lucky” to have landed a position as an engineer at Walmart. This sentiment is echoed by Heather Doshay, SignalFire’s head of talent, who notes a shift in company priorities. Organizations are increasingly favoring experienced hires, leading to smaller funding rounds, reduced teams, and fewer graduate programs. The rise of artificial intelligence is also impacting hiring decisions, as companies seek to automate roles traditionally held by entry-level workers.
Analyzing the broader trends, the average age of technical hires has risen by three years since 2021, indicating a clear pivot from investing in junior talent. Before the pandemic, new graduates represented 15% of hires among Big Tech firms; this figure has now plummeted to 7%. Additionally, startups, once a viable option for fresh graduates, are shrinking their headcounts and hiring less entry-level talent.
The narrative surrounding the job market has shifted dramatically, with success stories replaced by uncertainty and concern about the future. James O’Brien, a computer science professor at UC Berkeley, noted a change in hiring patterns, emphasizing that companies today are primarily interested in seasoned, highly technical employees. AI’s role in this shift cannot be overstated; many firms view AI as a more viable alternative to entry-level coders when it comes to efficiency and speed.
Despite these challenges, it is essential for graduates to remain adaptable and continuously develop skills that are in high demand. The tech industry may be experiencing a downturn, but it has historically rebounded. By focusing on growth and demonstrating resilience, new graduates can position themselves to thrive in future opportunities.