Spearhead AI consulting

The Shifting Landscape of Software Development: Overhiring and AI’s Impact on Jobs

Software developer employment is falling off a cliff. My take is that massive overhiring during the pandemic and AI is impacting software dev hiring.

The latest report from the ADP Research Institute reveals significant trends in software developer employment in the U.S. over the past few years.

Key findings include:

📉 Decline in Employment: Since 2018, the number of software developers has been decreasing, with significant drops noted in January 2022 and May 2022.

💼 Shift in Demand: The pandemic initially spiked demand for tech workers, but post-pandemic adjustments have led to layoffs and reduced hiring.

💵 Pay Trends: While software developers’ median base pay increased by 24% from 2018 to 2024, this growth lagged behind the 30% increase seen by all U.S. workers. Despite this, developers still earn more than double the U.S. median salary.

🌐 Regional Disparities: Salaries vary significantly by region. The highest median pay is in Silicon Valley ($163,200), whereas regions like Cleveland saw salaries grow by 27% to over $100,000 in 2024.

🔄 Impact of AI: The rise of AI is reshaping the landscape. While it might reduce the demand for traditional coding jobs, it also presents new opportunities for efficiency and innovation in the field.

What are your thoughts on software development hiring market?

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