Earlier this decade, computer science graduates had what seemed to be a paved road to a plentiful amount of technology-based jobs. Industry stakeholders ranging from tech billionaires to government leaders were encouraging students to learn to code. They claimed that students could earn six figure starting salaries and would advance their careers rapidly. For many students, a degree in computer science was equivalent to a lottery ticket, in terms of rewarding financial stability and interesting opportunities with some of the most innovative companies in the world.
Nevertheless, this story is shifting rapidly. New graduates with computer science degrees face unfamiliar difficulties in getting entry-level tech jobs. Instead of an open door to the tech job market, tech job opportunities are tightening with layoffs at larger companies and the rapid development of AI tools. Those tools are now automating coding and programming and reducing the need for junior engineers and changing the way hiring is done in the tech economy.
Why Fresh Computer Science Graduates Are Finding Fewer Opportunities
In recent years, the growth in student enrollment in computer science programs has been staggering. U.S. undergraduate enrollment jumped more than 100%, rising from 108,299 students in 2014 to an unprecedented 232,877 in 2024. Unfortunately, this increase in the number of graduates has not led to jobs for graduates. In fact, prominent companies such as Amazon, Meta, Microsoft, and Intel are laying off workers in masse by tens of thousands per industry report.
Moreover, existing technology companies have automating application development and support roles with increasingly sophisticated AI-enabled coding assistants. Companies can now rapidly write, debug, and test code faster than most humans. Entry-level technology roles are quickly being eliminated.
According to the Federal Reserve Bank of New York, unemployment in computer science has already eclipsed 6% for recent graduates, double the unemployment of students graduating with other degrees, such as biology or art history. This information reveals a troubling trend, with distinct changes in the labor market for AI jobs, where automating will disproportionately affect the fresh roles that newly minted graduates are pursuing.
How AI is Reshaping the Hiring Process for Entry-Level Tech Jobs
AI does not just affect the number of jobs. It also changes how companies find candidates. Many firms now use AI-driven tools to scan resumes and filter applications before any human sees them. This automated screening makes it harder for fresh graduates to even get noticed.
Audrey Roller, a recent data science graduate, explained the frustration: “It’s like an algorithm decides whether you can pay your bills.” This depersonalized hiring process leaves many graduates feeling stuck in an endless loop of rejection, despite their qualifications.
Adapting to the New Tech Job Market: The Shift Toward AI Skills
In an effort to counter these challenges, supporters of technology education and technology companies are shifting directions. Microsoft pledged $4 billion for AI training programs, and there are national initiatives encouraging students to gain AI knowledge and experience. The change in direction realizes that understanding and knowing how to use AI tools can open doors for recent graduates.
After graduation, Manasi Mishra from a computer science degree did not stumble into coding jobs – but found herself in tech sales having seen her views on TikTok and heard her passions for tech. Her story’s significance is emblematic of a trend, one that gives technology graduates an entirely new set of skills rather than hunting for coding jobs.
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