The New York Times reports a sharp reset in the U.S. entry-level software job market: recent computer science (CS) grads are struggling to land roles as Big Tech layoffs and AI-assisted coding compress demand for junior engineers. The story highlights cases like a Purdue CS major whose only interview was a 10-hour/week shift at Chipotle, and another graduate who submitted ~6,000 applications, netting just 13 interviews and zero offers—symptoms of an “AI loop” where candidates mass-apply with AI and companies auto-reject with AI.
Underlying data point to a real, broad-based slowdown. The Federal Reserve Bank of New York’s latest tables show unemployment among recent computer science grads at about 6.1% and computer engineering at 7.5%, above many non-STEM fields. Overall recent-grad unemployment averaged 5.3% in 2025 Q2, with underemployment just over 41%.
These outcomes are linked to multiple pressures: (1) AI tools that can draft and debug code reduce the perceived need for large junior cohorts; (2) hiring cuts and reorganizations at firms such as Amazon, Meta, and Microsoft shrink new-grad funnels; and (3) automated screening systems filter résumés at scale, often within minutes. Net effect: fewer true “entry-level” engineering roles and much harsher selection for those that remain.
For engineers, the takeaway is not that software careers are dead, but that the bar for first roles has moved: demonstrable end-to-end builds, evidence of systems thinking, and fluency with AI-in-the-loop workflows increasingly matter more than coursework alone. The on-ramp is narrower—and noisier—than during the 2010s hiring boom.