A recent report by SignalFire titled "State of Tech Talent: 2025" highlights a concerning trend for young college graduates seeking careers in the technology industry. According to the report, entry-level hiring by major tech companies such as Google, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla has plummeted by over 50% since 2022. This dramatic drop signifies a major shift in the tech sector’s hiring practices, increasingly influenced by tighter budgets, reduced funding rounds, fewer new graduate programs, and the growing reliance on artificial intelligence (AI).

Historically, fresh graduates had wide access to tech industry roles, but that door is now barely open. The report notes that in 2023, only 7% of total hires at major tech firms were recent graduates—down sharply from 25% the previous year. This downward trend reflects a larger structural change, where companies are focusing more on mid- and senior-level hires and leveraging AI to handle many entry-level tasks.

Startups, often seen as alternative entry points into the tech industry, are also cutting back on hiring college graduates. SignalFire found that startups funded through Series C venture capital rounds hired only 6% new graduates in 2024, a steep decline from 11% in 2023 and 30% in 2019. This widespread drop across both established tech firms and startups suggests systemic barriers for young professionals entering the field.

One key factor contributing to this trend is the increasing sophistication of AI, which is now capable of performing many routine tasks traditionally handled by entry-level employees. As a result, tech firms are prioritizing roles that offer higher technical output, especially in machine learning and data engineering. Non-technical roles like recruiting, sales, and product management are being reduced, further limiting job options for early-career professionals.

Additionally, there is a notable perception gap between employers and Gen Z workers. The report states that 55% of employers believe Gen Z employees struggle with teamwork, and 37% of managers would prefer using AI over hiring a Gen Z candidate. This perception is likely exacerbating the reduction in junior hiring, as employers lean toward automation and experienced staff.

Even graduates from top computer science programs in the U.S. are not immune to these changes. Despite strong educational backgrounds, they are finding it increasingly difficult to secure junior roles in big tech companies due to these evolving industry dynamics.

SignalFire emphasizes that while AI is not yet completely replacing entire job categories, it is significantly reshaping the entry-level job landscape. This aligns with concerns expressed by Aneesh Raman, LinkedIn’s Chief Economic Opportunity Officer, who warned in a New York Times op-ed that AI could disproportionately impact young professionals by eliminating the kinds of roles that traditionally served as career launchpads.

The report concludes that as AI becomes more embedded across industries, similar disruptions to entry-level roles may soon be seen in sectors beyond tech, such as finance, travel, food services, and professional services. This shifting employment landscape signals a tough road ahead for new graduates and underscores the need for adaptive skills and targeted career strategies.