AI's Impact: $165K Tech Jobs Vanish, Coders Eye Chipotle

For years, the path to a high-paying career in technology seemed straightforward: learn to code, earn a computer science degree, and a six-figure salary awaited. This promise, echoed by tech leaders and even U.S. presidents, spurred a massive surge in computer science enrollments. Manasi Mishra, now 21, recalls growing up near Silicon Valley, where the rhetoric was clear: coding was a golden ticket. Inspired, she built her first website in elementary school and pursued advanced computing through college. Yet, after graduating from Purdue University in May, Mishra found herself without a single tech job offer, leading her to famously quip in a TikTok video that the only company to call her for an interview was Chipotle.

This dramatic shift reflects a rapidly changing landscape in the tech industry, where the widespread adoption of AI programming tools and recent layoffs at giants like Amazon, Intel, Meta, and Microsoft are dimming prospects for new graduates. Once a guaranteed entry into lucrative roles, computer science is now facing an unexpected downturn. The financial incentives were once undeniable; in 2012, Microsoft executive Brad Smith highlighted typical starting salaries exceeding $100,000, often supplemented by $15,000 hiring bonuses and $50,000 in stock grants. This allure helped more than double the number of undergraduate computer science majors in the U.S. to over 170,000 by last year, according to the Computing Research Association.

However, the current reality for these graduates is stark. Among college graduates aged 22 to 27, computer science and computer engineering majors now face some of the highest unemployment rates, at 6.1% and 7.5% respectively. This is more than double the 3% unemployment rate seen among recent biology and art history graduates, as reported by the Federal Reserve Bank of New York. Experts like Jeff Forbes, a former program director for computer science education at the National Science Foundation, express deep concern, noting that students who would have been inundated with offers just a few years ago are now struggling to find any work.

The job search itself has become an arduous and often demoralizing experience. Over 150 college students and recent graduates, from institutions ranging from Stanford to state universities, shared their struggles, with some applying to hundreds, even thousands, of positions. They describe a process filled with online coding assessments, live tests, and interviews, often culminating in companies simply “ghosting” them. Many feel “gaslit” by the industry’s past promises, describing their quests as “bleak,” “disheartening,” or “soul-crushing.” Zach Taylor, 25, who loved programming video games and majored in computer science at Oregon State University, has applied for 5,762 tech jobs since graduating in 2023, yielding only 13 interviews and no full-time offers. He even applied to McDonald’s for work, only to be rejected for “lack of experience.”

A significant factor in this squeeze is the tech industry’s rapid embrace of AI coding assistants. These tools can generate thousands of lines of code quickly, reducing the demand for junior software engineers—the very roles new graduates typically seek. Matthew Martin, a U.S. senior economist at Oxford Economics, points out that entry-level positions are most vulnerable to automation. While some universities are now beginning to train students on these AI tools, Tracy Camp, executive director of the Computing Research Association, believes many recent graduates are still ill-equipped with the newest, most sought-after skills.

This dynamic has created an AI “doom loop” for job seekers. Graduates increasingly use AI tools like Simplify to tailor resumes and autofill applications, enabling them to apply to a vast number of jobs quickly. Simultaneously, companies overwhelmed with applications are deploying AI systems to automatically screen and reject candidates. Audrey Roller, a recent data science graduate, attempted to stand out by highlighting her human skills like creativity, writing her applications without chatbots. Yet, after one recent submission, a rejection email arrived just three minutes later. “It’s hard to stay motivated when you feel like an algorithm determines whether you get to pay your bills,” she lamented.

Even government tech jobs, traditionally seen as a stable alternative, present new hurdles due to cutbacks and hiring freezes, as Jamie Spoeri, a Georgetown University graduate interested in tech policy, discovered after applying to over 200 roles. Despite the challenges, there’s a growing push for adaptation. Leaders like former President Donald Trump and companies like Microsoft are now channeling significant funding and initiatives toward AI training, recognizing the imperative to equip the workforce with these new skills.

For Manasi Mishra, the path took an unexpected turn. While she didn’t get the Chipotle job, her experience as a beauty influencer on TikTok helped her realize a greater passion for tech marketing and sales over software engineering. This insight led her to cold-apply for a tech sales position, which she secured in July, starting this month. Her story, though unique, highlights a broader truth: as AI reshapes the tech landscape, graduates may need to adapt their expectations and skills, or pivot entirely, to navigate a future where the “golden ticket” is no longer a given.