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AI was supposed to kill engineering jobs, but new data suggests they’re the mostresilient
Despite concerns that AI would replace engineering jobs, new data suggests engineering roles are resilient. Research by SignalFire indicates an 11% drop in engineering hiring compared to a 25% decline in overall tech jobs in 2025, with engineers making up 55% of new hires at major tech firms. AI is enhancing engineer productivity, leading to increased demand for their skills rather than job losses.
Key points
- Tech layoffs peaked in May 2023, largely attributed to AI, but hiring trends tell a different story.
- SignalFire analyzed millions of employees and found engineering roles were the most resilient, with a 11% drop in hiring versus 25% overall.
- Engineers accounted for 55% of new hires in 2025, up from 46% in 2019.
- Early-stage startups hired 7% more engineers in 2025 compared to 2019.
- Prominent figures, like Nvidia CEO Jensen Huang, assert that AI tools are enhancing engineers' productivity rather than replacing them.
Why it matters
- This report connects to broader concerns about AI's impact on job markets, echoing warnings from leaders like Anthropic CEO Dario Amodei.
- The findings mirror trends in the 2025 IT landscape where technology jobs, particularly in software engineering, are increasingly integrated with AI.
- Historical context includes previous waves of automation that often increased the demand for skilled labor rather than decreased it.
Overall, evidence suggests that rather than diminishing engineering jobs, AI is transforming the role into one of higher productivity, creating an ongoing demand for engineering talent in the tech sector.