The tech job market is undergoing a dramatic transformation as AI and corporate cost-cutting create an employment recession for entry-level workers, particularly impacting Gen Z graduates with computer science degrees. Kanika Mohan, a 21-year-old first-generation college student who studied computer science, exemplifies this shift. Despite internships at top tech companies and regular career fair attendance, she faced a monthslong job hunt that forced her to look beyond Big Tech to business analyst and marketing roles at airlines, banks, and consumer companies.
The numbers paint a stark picture: US job postings for tech workers on Indeed have cooled significantly from Great Resignation peaks, with the tech industry mirroring conditions from the Great Recession, according to Daniel Zhao, chief economist at Glassdoor. The unemployment rate for Gen Zers and younger millennials in computer and math occupations has increased from pre-pandemic levels, creating intense competition among recent graduates. Meanwhile, the number of computer and information sciences graduates has grown, flooding the market with qualified candidates competing for fewer openings.
AI is fundamentally changing entry-level work, with companies seeking ways to streamline their workforce and eliminate routine tasks. Timothy Innamorato, 27, who completed a computer science certification program, has sent out hundreds of applications with only eight interviews in his field. He’s now considering pivoting to trades like plumbing or HVAC, or applying for grocery store and janitorial positions to stay afloat.
However, there’s a silver lining for those who adapt. Natasha Pillay-Bemath, vice president of global talent acquisition at IBM, notes continued demand for entry-level talent in “critical, complex spaces of tech like AI and cloud.” The key differentiator: candidates who can master AI tools while demonstrating strong soft skills like creativity and effective communication. As AI handles “rote work,” human skills become more valuable.
Experts recommend strategic approaches over mass applications. Charley Kim, 23, who landed a software engineering role at Big Tech, credits networking and referrals for his success. Christine Cruzvergara from Handshake emphasizes quality over quantity in applications, while Mohan suggests creating multiple résumé versions tailored to different roles and industries, occasionally using AI to optimize for specific positions.
Key Quotes
I’ve been shifting my views on whether or not I even want to continue looking at the moment, especially with the AI thing that’s happening now.
Timothy Innamorato, a 27-year-old computer science certification holder, expresses the frustration many Gen Z tech workers feel as AI disrupts traditional entry-level opportunities, forcing them to consider alternative career paths outside their chosen field.
Mass applying is actually hurting people because they’re putting in lower-quality applications that aren’t going to stand up in a competitive applicant pool.
Bonnie Dilber, a software company recruiter, highlights a critical mistake job seekers make in the AI-impacted market, where quality and customization matter more than volume in standing out among hundreds of applicants.
Strong applicants should show that they can both master using AI and also lean on soft skills like creativity and effective communication, as AI takes away the ‘rote work’ of an entry-level hire.
Natasha Pillay-Bemath from IBM identifies the dual competencies needed to succeed in the AI-transformed job market, emphasizing that technical AI skills must be paired with uniquely human capabilities that machines cannot replicate.
Chances are you won’t get a job at Microsoft. One thing I realized is that a lot of people have a dream company or a dream role. But it’s really tough to do that anymore.
Kanika Mohan, who now teaches job hunting strategies on TikTok after her own difficult search, captures the harsh reality facing Gen Z tech graduates who must abandon idealistic career expectations and adopt more flexible, strategic approaches.
Our Take
This article captures a watershed moment where AI’s promise and peril converge for the next generation of tech workers. The irony is striking: students chose computer science specifically because of AI’s rise, only to find AI eliminating the very entry-level positions they trained for. This creates a dangerous feedback loop where fewer junior roles mean less talent development, potentially hampering future AI innovation. The emphasis on soft skills represents a crucial insight—as AI commoditizes technical tasks, uniquely human capabilities become the differentiator. However, the article also reveals a troubling class dimension: first-generation students like Mohan invested in STEM as a path to upward mobility, only to face barriers that favor those with networking advantages and financial cushions to weather extended job searches. The solution isn’t abandoning tech careers but reimagining them around AI collaboration and human-centric skills.
Why This Matters
This story reveals a critical inflection point in the tech industry where AI is simultaneously eliminating and transforming entry-level opportunities. The shift challenges the long-held belief that STEM degrees guarantee lucrative tech careers, forcing a generation of workers to reconsider their career paths. The implications extend beyond individual job seekers to the broader economy: if traditional tech pathways close, we may see talent migration to trades and other sectors, potentially creating skills gaps in emerging AI fields.
The emphasis on soft skills alongside AI proficiency signals a fundamental change in what employers value. As AI automates routine tasks, human creativity, communication, and adaptability become premium skills. This creates a paradox where AI both threatens entry-level jobs and creates demand for workers who can effectively collaborate with AI systems. Companies that fail to invest in entry-level talent risk losing the next generation of innovators, while those who adapt their hiring practices may gain competitive advantages in the evolving AI landscape.
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Source: https://www.businessinsider.com/ai-networking-soft-skills-gen-z-landing-tech-job-2025-8