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Software Engineering Job Openings Hit Five-Year Low (pragmaticengineer.com) 58
Software engineering job listings have plummeted to a five-year low, with postings on Indeed dropping to 65% of January 2020 levels -- a steeper decline than any other tech-adjacent field. According to data from Indeed's job aggregator, software development positions are now at 3.5x fewer vacancies compared to their mid-2022 peak and 8% lower than a year ago.
The decline appears driven by multiple factors including widespread adoption of AI coding tools -- with 75% of engineers reporting use of AI assistance -- and a broader tech industry recalibration after aggressive pandemic-era hiring. Notable tech companies like Salesforce are maintaining flat engineering headcount while reporting 30% productivity gains from AI tools, according to an analysis by software engineer Gergely Orosz.
While the overall job market shows 10% growth since 2020, software development joins other tech-focused sectors in decline: marketing (-19%), hospitality (-18%), and banking/finance (-7%). Traditional sectors like construction (+25%), accounting (+24%), and electrical engineering (+20%) have grown significantly in the same period, he wrote. The trend extends beyond U.S. borders, with Canada showing nearly identical patterns. European markets and Australia demonstrate more resilience, though still below peak levels.
The decline appears driven by multiple factors including widespread adoption of AI coding tools -- with 75% of engineers reporting use of AI assistance -- and a broader tech industry recalibration after aggressive pandemic-era hiring. Notable tech companies like Salesforce are maintaining flat engineering headcount while reporting 30% productivity gains from AI tools, according to an analysis by software engineer Gergely Orosz.
While the overall job market shows 10% growth since 2020, software development joins other tech-focused sectors in decline: marketing (-19%), hospitality (-18%), and banking/finance (-7%). Traditional sectors like construction (+25%), accounting (+24%), and electrical engineering (+20%) have grown significantly in the same period, he wrote. The trend extends beyond U.S. borders, with Canada showing nearly identical patterns. European markets and Australia demonstrate more resilience, though still below peak levels.
Re:Quite strange that (Score:5, Informative)
I was very skeptical of AI being helpful in my role. My company is all in on attempting to leverage AI. We tried all the tools. I've been impressed with Cursor. It's like having a 1-3 year jr engineer at my beck and call. The code it writes is as good as any jr engineer I've worked with. It takes feedback about the same, except it doesn't complain when I ask it to refactor, write tests, and document. In addition to all of that, it's great for unfamiliar code bases in that it can take the whole code base as input and answer questions about it. Speeding up my ability to get familiar and become useful.
Like any engineer, all the code it writes needs a review and I treat my time with it as a pair programming session, giving it advice, asking about its decisions, and pointing out flaws. I'd say it's saved me at least 20 hours of work in the last two weeks. That saves me from eventually hiring a jr engineer for my team. If it can improve over the next 2-4 years that puts me on par with hiring a jr engineer who becomes a mid-career engineer. That's a real job this AI potentially has taken from the market.
The impact is real even if we don't want to face it.
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Well if they train their tool with our data then they get a huge lawsuit from our lawyers as our contract specifically says they can't do that. I trust my my leadership's opinons more than internet strangers when our entire business model is based around proprietary code and we have entire legal teams dedicated to ensuring that.
Re:Quite strange that (Score:4, Interesting)
First, I agree with previous poster, you are training it with your proprietary knowledge. You got lawyers? So what? How are you going to prove the tool ripped off your IP if the tool doesn't give attribution? Second, what are the Terms of Service? What are you going to do in the (arguably) inevitable situation where the company holds you for ransom by raising the price or otherwise changing the TOS? You're creating a dependency on a tool that can be taken away. examples Broadcom/VMWare, or Microsoft forcing you to upgrade to Windows 12... 11.
Dependency is your blindspot, imho.
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None of that matters to me. I don't own the company. I run solve the problems they pay me to solve. If legal thinks it's fine it's fine. It is not my job to care after they negotiate the contract.
If the tool gets too expensive for the company, they will find another tool. Just like they did with VMware. Again though, that isn't my concern. I write code to solve problems that's all that is my concern.
Re:Quite strange that (Score:4, Interesting)
You know what else can save 20 hours in two weeks?
Working from home.
But who's willing to slay the RTO sacred cow?
In Corporate America, keeping the workers in fear of losing their jobs is how salary growth is managed. AI is a part of that. Whether the productivity gains are real or not is beside the point - it serves a very useful purpose in managing employee expectations.
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I do work from home. I've been working from home for a decade now.
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RTO is a thing because management is lonely at the office and paying for unused office real estate is making executives nervous.
Normal people would find a friend and sell excess office space. But this is the corporate world, the people in charge is not normal.
Tax break hypothesis (Score:2)
One hypothesis going around is that a lot of these larger companies negotiated tax breaks with the city, intended to provide more foot traffic to nearby small local business. These tax breaks were conditioned on the office space actually being occupied, which condition was paused during the pandemic. Now that the condition is once again in effect, the executives feel obligated to re-qualify for these tax breaks.
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That saves me from eventually hiring a jr engineer for my team.
Sorry, I can feel the eye rolling at that one. As if taking a jr under the wing was that common, or we've suddenly run out of bitch work because AI.
It's like holding a nailer and saying it saves you from eventually hiring a kid to hold your nails. If you didn't already... you weren't were you.
we removed the fake h1b jobs for the year! (Score:3)
we removed the fake h1b jobs for the year!
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We largely have enough software (Score:2)
Regardless, a lot of software has been developed over the last several decades. What exactly would one want to set out and develop at this point? I'm sure there is some software for new aircraft and such. And there might be some recreation necessary for software that exists but the necessary hardware isn't readily availa
Re:We largely have enough software (Score:4, Informative)
This is a very strange statement. There are TONS of software that are just not written yet.
We may have software that look like it, but not necessarily a ready made software that does the thing in the right context.
We (basically) didn't have LLMs 4 years ago. Do you think we have written all the software that will eventually use an LLM to power it? ...
Someone needed to write the software that makes an LLM output images. Someone had to write the software that takes a description and leverages LLMs to generate videos.
Then you need to write the code that plugs that into ms paint, into photoshop, into google slides, into office 365,
There are TONS of software to write that will be useful.
Now, maybe there is code that looks like it and that has already done for some of it. But if it doesn't work out of the box, you are going to need software enginneers to make the connections.
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The Software development bubble is finally bursting, it's time to learn another skill. The world can never be built by everyone sitting in a chair copy and pasting code all day. We need people that can actually build things out here in the physical world.
The only reason manual or physical work is not as high paying as sitting at a desk is because those at the desk ar
Re:We largely have enough software (Score:4, Insightful)
There have been engineers for longer than there have been licenses to be engineers. That civil engineers (and to a lesser extent mechanical) have beholden themselves to bureaucrats in exchange for a fancy title and the right to be personally liable if any of their employees fucks up is their problem.
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Lawsuits have led to professional organizations of engineers.
Luckily, software is not generally valuable enough to lead to such lawsuits.
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Why not call PEs "certified paperwork shufflers" or "government approved liability magnets"?
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I like it that higher-end civil and structural engineers are licensed
Just more government gatekeeping and control and more authoritarianism. Hold the companies making dangerous/faulty/fraudulent products responsible, not the engineers. Otherwise we might as well get rid of corporate personhood that's done such a great job of shielding management from liability. What's good for the goose is good for the gander, no?
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Maybe you definition of engineer is too narrow (Score:2)
At my job I have to use an engineering design process to qualify and quantify my results. It's just software, as in I edit a text file all day long, but they put it in cars.
I don't actually care if you call me a software developer or software engineer. Among software engineers we call each other that generally (SW eng vs HW eng). It's kind of like how in academics half the people are doctors but aren't called that in the outside world.
As for why write any new software. People keep making new hardware, often
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I'm technically an AI technology engineer now. But I don't really like the title.
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Among peers it was always engineer, as soon as I moved from "data processing" / programmer, to realtime embedded. During jury selection voir dire long ago, I stated my occupation as "software engineer", and was somewhat sneeringly asked by defense counsel "do you have an engineering degree". Even if I'd had a CS degree, CS at the local major university was not part of the engineering school, but was a division of the mathematics department. My last few times in voir dire, I said "embedded systems softwar
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I have held titles of Network Engineer, Software Engineer, Systems Analyst, Embedded Developer over my years.
Engineering as a description of software development of a certain level has existed since the advent of digital computers.
It makes sense when you look at what goes into the architectural development of large softwares.
The use of the term "engineer" is very old. Licensing of its practitioners is very new.
Engineers first referred to
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I don't understand the term "software engineer" unless it's like a trash collector calling themselves a "sanitary engineer." Who administers the licensing for such type of engineering?
You're going to get a lot of guff for this, but you're right. It's basically job title inflation for ego stroking. We used to have programmers. Now we have software engineers. We used to have teachers. Now we have "educators". We used to have garbage men. Now we have "waste management professionals". Pretty soon, the mailman is going to become something like a "physical communications facilitator" or some nonsense.
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You're going to get a lot of guff for this, but you're right.
They are. But that's because they're wrong, not right. That makes you wrong too.
It's basically job title inflation for ego stroking.
Sure, except that engineering job titles predate the ego stroking of the engineer licensing cartels.
We used to have programmers. Now we have software engineers.
A funny claim, since the term software engineer was used in the 60s.
I bet all the programmers from the 50s enjoyed the upgrade.
You're an idiot.
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Who administers the licensing? Nobody.
You are an engineer by the fact that your role is to engineer.
You seem to think that all engineers are PEs. This is stupid. Do yourself a favor and stop being stupid.
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We always need new software. At the minimum, security threats never stay static, so there is always that, which needs engineering to work with. There are also new ways of interaction as well. For example, if asymmetric cryptography is left broken by Shor's Algorithm, then working on ways to use symmetric crypto until new public key algorithms can be put in place and tested.
Manufacturing as well. 3D printing is evolving, not just by hardware, but evolution like variable pressure, staggered layer lines (l
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Reminds me of the quote attributed to the Commissioner of the USPTO in 1889: https://www.reorbit.space/news... [www.reorbit.space].
He is widely quoted as having stated that the patent office would soon need to shrink in size, and eventually close, because, according to his perspective:— Everything that can be invented has been invented.
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Learn to Code (Score:1)
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COVID bubble (Score:3)
The massive COVID software development bubble burst, as represented by the graphs in the article. So the 5 year decline is totally expected and understandable.
What the article does not show in the various graphs are the months and years prior to the onset of COVID, which is what is meaningful to try to determine the real trajectory the profession was on. So I'm not really sure the point of the article stating the obvious (everyone scrambled for remote work and education during COVID causing a huge boom in software development, which has dropped consistently since then).
What I do not see in the graphs is an sudden drop off in the last two years triggered by AI advancement.
Not just a bubble (Score:4, Interesting)
For reference, at the height of the industrial revolution in the United States, steel workers made the inflation-adjusted equivalent of $85k per year.
But just a few decades later, the working class would be the subject of Upton Sinclair's The Jungle - a polemic about the terrible working conditions of the slaughterhouses. The inflation adjusted wage of steel workers today is far lower than it was in the heyday of the industrial revolution.
At the height of the dot-com boom, engineers could do consulting for $200 per hour. Today, "full stack" engineers can expect to start out making $15/hour - adjusted for inflation, that's a third of what I made in my first entry level position.
This trend of "capital chasing" occurs in every industry. At first, the industry chases investor capital, and the salaries are high. But once the business becomes established, the focus moves from market capitalization to cost control, and the MBAs come in and the salaries drop. This is happening now in the software engineering field. It started with guaranteed student loans - to encourage a glut of programmers - but then moved to H1B's and offshoring, and now Corporate America is trying to reduce wages with AI. Eventually, writing code will be like math - something everyone was "taught" in high school, but not something they particularly like to do. It will no longer be a skill which sets someone apart from everyone else.
I don't advise the younger generation to go into programming. The downward pressure on wages is a several decade trend - and it happens in every industry. Instead, I advise people to learn a skill they can offer to the general public - either start a business, learn law, medicine, or one of the trades. The only people who will be able to maintain a middle class standard of living in the future are those who own or run their own businesses. Because if history teaches us anything, it's that the workers always get the short end of the deal. It's always been that way, and aside from the "capital chasing" phase of an industry, will always be that way.
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At the height of the dot-com boom, engineers could do consulting for $200 per hour. Today, "full stack" engineers can expect to start out making $15/hour - adjusted for inflation, that's a third of what I made in my first entry level position.
...Fast food joints in semi-rural North Florida are currently advertising *starting* pay of $15/hour. That works out to about $30K/year if full time.
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Full stack engineers == Novell Engineer == Windows Admin == HTML Programer == Deskside Support==General Programer without an Focus Industry==FRIES WITH DAT?.
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The Taco Bell near me has signs adverting that they are hiring with slogans like "vamos a veinte". Most of the signs were in English, but that Spanish one was the catchiest and easier for me to remember.
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I advise the younger generation that "programming" is a trade, and they should treat it as such. And that "computer science" is done on the whiteboard, not the keyboard.
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My BSCS has made me an excellent programmer.
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Trying to equate what steelworkers made in the latter 1800's to $85K per year in 2025 is a dodgy calculation to say the least.
In what way were they better off than anybody today? Better food? More living space per person? Fewer working hours? Longer life expectancy? No, no, no, and no. It's meaningless.
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If you're making $15/hr in such a position- shop around, you can do better.
I wonder how many jobs at their peak were real? (Score:3)
no (Score:2)
very bad (Score:1)