Tech workers with a $165,000 salary bidding adieu, aspiring student coders eye employment opportunities at Chipotle.
Struggling to Break into Tech: The Impact of AI and Layoffs on Computer Science Graduates
In the bustling tech hub of San Francisco, billboards advertising AI tools like CodeRabbit promise to revolutionize the industry, promising to debug code faster and better than humans. However, for many recent computer science graduates, these advancements have had a less than promising impact on their job prospects.
Manasi Mishra, a 21-year-old from San Ramon, California, graduated from Purdue University in May 2023 without a tech job offer. Her TikTok video about her job search, which racked up over 147,000 views, stated that the only company that called her for an interview was Chipotle.
This is not an isolated incident. Over 150 college students and recent graduates have shared their job search experiences, describing the process as arduous, intense disappointment, and companies ghosting them.
The trend of tech firms embracing AI coding assistants is reducing the need for some companies to hire junior software engineers. According to Matthew Martin, U.S. senior economist at Oxford Economics, entry-level positions, particularly sought by recent college graduates, are most likely to be automated.
The tech industry has been promoting computer science education since the early 2010s, arguing that it would boost students' job prospects and the economy. However, recent graduates looking for government tech jobs report increased hurdles due to recent government cutbacks and hiring freezes.
Among college graduates ages 22 to 27, computer science and computer engineering majors are facing some of the highest unemployment rates, with rates of 6.1% and 7.5% respectively, more than double the unemployment rate among recent biology and art history graduates.
Jeff Forbes, a former program director for computer science education and workforce development at the National Science Foundation, is concerned about the employment prospects of computer science students. He notes that many universities are just now starting to train students on AI coding tools.
The spread of AI programming tools and layoffs at tech companies like Amazon, Intel, Meta, and Microsoft are dimming prospects in the computer science field. Giants like these have cut jobs extensively in 2024-2025, shrinking the number of available roles for new grads in software engineering.
To combat this, President Donald Trump has unveiled a national AI action plan, which includes channeling more students into AI jobs. Microsoft has also pledged $4 billion for AI training for students and workers.
However, the intense competition and high application numbers remain a significant challenge. Graduates often need to send dozens of applications monthly (sometimes over 50) just to land a few interviews, with many ultimately receiving no offers. Even graduates from top universities like MIT and Stanford face declining employment rates in engineering jobs at major tech firms, dropping to around 11-12% for elite grads in 2024.
Some job seekers are using AI tools like Simplify to tailor their resumes and autofill application forms, enabling them to quickly apply to many jobs. However, companies are using AI systems to automatically scan resumes and reject candidates, creating a challenge for job seekers.
Audrey Roller, a recent data science graduate, highlights her human skills like creativity on her job applications to stand out, but still faces rejection by AI-driven systems. The emotional and psychological toll of the relentless, often unsuccessful job search process is described by graduates as "bleak," "disheartening," and "soul-crushing," contrasting sharply with earlier promises that a computer science degree guaranteed lucrative tech jobs.
In summary, the promises of high salaries and job security tied to a computer science degree have faltered because AI reduces entry-level job availability, tech layoffs shrink openings, hiring preferences lean toward experienced or international workers, and the competitive landscape has become extraordinarily tough for new graduates in 2025.
The lack of tech job opportunities for recent computer science graduates has led to increased concern, with Education-and-self-development programs struggling to keep pace with the rapid advancement of Technology in the Business sector. Financial security in Careers related to Computer Science is at stake, as the impact of AI and Layoffs in the tech industry has resulted in reduced demand for entry-level positions. This situation is further exacerbated by the competition among graduates, who often find themselves sending dozens of applications each month, only to receive little response. The need for Education in AI coding tools has become increasingly important for students in order to remain competitive in the job market.
