What Today’s Grads Must Know About the 50% Drop in Tech Hiring
Tech hiring for new graduates has dropped precipitously, and this isn't a one-time blip.
If you're a recent graduate polishing your resume, clutching your degree, and fantasizing about Silicon Valley success, it might be time to take a breather. The landscape has shifted, and we are not talking about a minor dip. We are amid a major reset.
According to a report from venture firm SignalFire, entry-level tech jobs have been reduced by more than half since 2019. Before the pandemic, fresh graduates accounted for approximately 15% of Big Tech hires. Today, that figure has dropped to just 7%. Yes, hurts.
Let us break it down and get real about what's going on, why it matters, and what you can do about it.
What Happened to Entry-Level Tech Jobs?
The truth is that the number of entry-level tech jobs has not kept pace with the massive influx of graduates entering the job market.
Big Tech hiring freeze policies went into effect during the economic downturn following 2020, and many companies never really hit the unpause button. As they cut costs, entry-level positions were frequently the first to go.
Why?
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Junior roles are viewed as high-maintenance (think onboarding, training, and handholding).
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AI and automation are taking over many basic technological tasks.
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Companies are under pressure to achieve more with less.
Fun Fact: Entry-level hiring is more than just a hiring statistic. It is a pipeline. When you choke that off, future leadership begins to dry up.
Is the Tech Industry Still Growing?
Yes, but not where you'd expect.
According to recent projections, tech jobs in 2025 will increase from 6 million to 7.1 million by 2034. That is solid growth.
But (and this is a big but):
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The growth is skewed toward mid- and senior-level positions.
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Employment opportunities for recent graduates have yet to rebound.
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The ladder is broken near the bottom.
Bottom line: Hiring trends in the technology industry indicate expansion but not inclusion for beginners.
Why Are New Grads Being Left Behind?
It’s the perfect storm:
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The impact of AI on jobs is most noticeable at the foundational level.
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Many stepping-stone positions, including QA testers, junior developers, and IT support, are now automated.
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Remote work has expanded the global talent pool, resulting in fierce competition.
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According to Aneesh Raman of LinkedIn, artificial intelligence is "breaking the bottom rung of the career ladder."
Are Tech Companies Still Hiring At All?
Yes. Hiring ≠ you.
They are being extremely selective. Many open positions now require three or more years of experience, even for what were once considered junior titles.
Nonetheless, the job outlook for software developers remains positive. Developer unemployment is only 2.2%, or half the national average. However, that statistic includes both seasoned professionals and graduates.
So what does this mean for you?
How Can Grads Land a Job in 2025?
This is where things become hopeful.
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Understand your niche. Generalists are struggling. Specialists win.
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Gain real-world experience. Internships, freelance gigs, and open-source projects all count.
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Prepare for a career in technology by developing AI skills. This is not an option anymore.
"87% of hiring managers say AI experience is a top hiring factor." —Wall Street Journal.
Pro Tip: Don't only learn AI tools. Use them. Build alongside them. Ship items that solve genuine problems.
What Tech Hiring for New Grads Looks Like Now
Consider this: the door is not locked, but it is also not completely open.
To get in, you will have to:
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Show more than a degree.
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Present a portfolio of your actual work.
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Showcase adaptability, curiosity, and lifelong learning.
The job market for graduates in technology is no longer linear. It is a zigzag. Accept the unconventional path.
Common Questions
Why is it harder for new grads to get hired in tech now?
Automation and cost-cutting have reduced the number of entry-level tech jobs. It is not you. It's the marketplace.
Are tech companies firing people or just hiring fewer?
Mostly hiring fewer people. There are especially few new graduates. Total employment is increasing, but not at the bottom rung.
Will the hiring freeze last forever?
No, but it is evolving. Consider leaner teams, smarter hires, and AI skills for tech careers as the new standard.
Final Thought: Are We Witnessing a Hiring Reboot?
Yes. However, not all reboots are bad.
The current shake-up could create new opportunities that did not exist a few years ago. Startups. AI startups. Remote-first businesses. Creator-tech hybrids. You name it.
Key takeaway: If you are graduating into this world, you are not unlucky. You are early. You get to create the new ladder.
So keep learning. Keep building. And don't wait for the perfect job title; instead, create one that matches your skills and drive.
Notable Quote: "The future does not involve climbing a ladder. It's about constructing your staircase.
Essential Points to Remember:
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Since 2019, tech hiring for new graduates has dropped by more than 50%.
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AI is changing the way early-career roles are organized—or eliminated.
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The job market for graduates is competitive but not impossible.
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Upskilling in AI skills for tech careers is the most effective way to stand out.
If you can get your foot in the door, the job market for software developers remains promising.
So stay curious, be creative, and keep an eye on the horizon. You're not simply looking for a job. You're starting a career that will be nothing like what your professors imagined.
And that? That's sort of exciting.
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