The Evolving Landscape of Tech Hiring Challenges New Graduates

With the tech industry in constant evolution, new demands and challenges arise for students fresh out of college looking to score their first job. A recent survey showed that 87% of hiring leaders are focused on the AI experience first when looking at candidates today. That’s a remarkable change reflecting a massive shift in the industry. Today, AI skills are explicitly required in nearly 25% of new job postings.

It’s true that, since 2019, the 15 largest tech companies have made a radical shift in their hiring priorities. They are hiring more than 50% fewer new graduates. Prior to the pandemic, their share of graduates in these large companies’ workforces was nearly 15%. This number has since dropped to a mere 7%. This downward trend reflects an increasing demand for more experienced candidates who can hit the ground running on projects that require a higher level of technical expertise.

As intimidating as this all may sound, the tech job market is still expected to grow by a whopping 13 percent. By 2034, the number of advanced tech jobs is projected to increase from 6 million to 7.1 million. This increase of opportunity indicates that continued openings will be available moving forward. Competition will ramp up for the most common entry-level roles. Indeed, according to the most recently available data from the BLS as of March 2022, software developers have a 2.2% unemployment rate, well below the national average. This means that though it can be difficult for new graduates, those with proven skills, particularly in software development, are still very much in demand.

The increasing demand for AI experience among employers underscores a shift in the skills that graduates must possess to remain competitive in the job market. As more companies adopt AI for their business operations, this makes them more likely to value candidates that can help them better understand and leverage these technologies. Consequently, graduates who are entering the workforce today need the laser-like focus to acquire all of the skills relevant to industries — as they are changing rapidly.