AI & Layoffs: New Tech Grads Struggle for Jobs, Feel 'Gaslit'
The once-bright promise of a lucrative career path for computer science graduates is dimming, leaving many feeling “gaslit” and “ghosted” in a tech job market profoundly reshaped by artificial intelligence and widespread industry shifts. A recent report in The New York Times painted a stark picture of new grads applying for hundreds, even thousands, of positions only to face silence, a phenomenon contributing to a palpable sense of disillusionment among those who once envisioned six-figure starting salaries and coveted roles.
The core of this challenge lies in the rapid advancement and adoption of AI. Generative AI tools are now capable of performing many routine and repetitive tasks that traditionally constituted entry-level tech work, from generating and debugging code to basic data analysis and administrative support. This efficiency gain for companies often translates directly into fewer junior-level openings. Indeed, some industry leaders, including Shopify CEO Tobi Lütke, have explicitly stated that teams must justify why they cannot achieve their goals using AI before requesting new hires. This shift has led to a significant decline in traditional entry-level job postings, with some reports indicating a 15% year-over-year decrease, while job descriptions demanding AI-related skills have surged by a staggering 400%.
Compounding the impact of AI is a broader recalibration of the tech industry. Following a period of aggressive hiring, major tech firms like Amazon, Intel, Meta, and Microsoft have implemented sweeping layoffs, flooding the market with experienced talent. This has created an intensely competitive landscape where companies increasingly favor seasoned professionals who require less onboarding and training, further marginalizing new graduates. The result is a troubling rise in unemployment rates for recent computer science and computer engineering graduates, reaching 6.1% and 7.5% respectively, more than double the rates for biology or art history majors. This represents a historical anomaly, marking the first time in over 45 years that the unemployment rate for recent college graduates (ages 22-27) has climbed above the overall U.S. worker unemployment rate.
The human toll of this evolving market is significant. Graduates report being caught in an “AI doom loop,” where AI-powered recruitment systems automatically scan resumes and reject candidates, sometimes within minutes of application, often without human oversight. This reliance on algorithms contributes to the pervasive “ghosting” phenomenon, where applicants are left without any response after submitting applications or even completing interviews. One Oregon State University graduate, for instance, applied for over 5,700 tech jobs since 2023, securing only 13 interviews and no full-time offers, illustrating the sheer volume of applications and the crushing silence that often follows. The emotional impact is profound, as aspiring professionals grapple with the feeling that their career prospects are being determined by an algorithm.
As the industry continues to evolve, the path forward for new tech graduates demands adaptability. The era of simply “learning to code” as a guaranteed ticket to a high-paying job is yielding to a new imperative: learning to work effectively with AI. Developing skills that complement AI, such as critical thinking, creativity, strategic problem-solving, and interpersonal communication, will be crucial. Employers and educational institutions are increasingly recognizing the need to invest in reskilling programs and integrate AI literacy into curricula to prepare the next generation for an AI-driven workforce where collaboration with intelligent systems, rather than just traditional programming, defines success.