Why Some Software Engineers Aren’t in High Demand Anymore

In the past, having a computer science degree seemed like a ticket to a six-figure salary after graduating from college. Recently, however, many new grads in these majors are finding it difficult to secure employment.

Unemployment rates for computer science and computer engineering majors are currently among the highest for all majors, at 6.1% and 7.5%, respectively.

Between the flood of new talent, limited jobs, and a shift in hiring practices, securing a software engineering role might take much more time. We connected with experts to understand why it’s harder for software engineers to find a job and what they can do about it.

A Shift in Demand for Entry-Level Software Engineers

The demand for software engineers hasn’t vanished entirely, but it may have shifted in favor of more experienced engineers.

“There are more than 100,000 new college students who graduate from computer science programs each year,” said Daniel Zhao, chief economist at Glassdoor. “In an environment where the tech industry is not growing employment, these tens of thousands of new graduates are hitting a brick wall as they enter the job market. They’re stuck in a traffic jam, fighting against each other for the relatively few jobs that are available.”

And as major tech companies—like Google, Meta, and Amazon—have laid off tens of thousands of employees, the market has become flooded with experienced candidates.

As a result, recent grads may find themselves at a disadvantage, struggling to stand out in a crowded market where employers value specific technical skills and practical experience.

While the landscape has changed, software engineering remains a high-value career with strong long-term potential. However, simply having a degree isn’t enough anymore. Here are a few ways to stand out as a candidate.

Don’t Limit Yourself to Big Tech

In today’s job market, aspiring software engineers and new grads need to stay flexible and open-minded. While many enter the field dreaming of roles at top tech companies, the reality is that those positions are increasingly competitive. That doesn’t mean the opportunities are gone—it just means they may look different than expected.

Since technology now plays a vital role across many industries, from healthcare to finance, being willing to pivot and explore tech roles in other sectors can still open doors, according to Zhao.

“For example, the healthcare industry is continuing to hire steadily, despite the macroeconomic headwinds the rest of the economy is facing, and so health tech or tech jobs at healthcare companies might offer more stability or more opportunities than other parts of the tech overall,” said Zhao.

Stay Updated and Upskill Continuously

Upskilling and staying current with evolving technology, like can significantly set you apart from other candidates.

“It is important for new grads to try to stay up to date on what the latest in AI allows them to do, but it is also important to stay flexible and recognize that the technology is changing,” Zhao said. “That might mean not necessarily going very deep into one particular technology, but instead trying to remain flexible so that you can stay on the cutting edge as the technology changes.”

Diversify Your Job Search

When searching for a job, it can be tempting to stick to just one method, especially online job boards, because it’s convenient and familiar. But relying on only one channel can limit your opportunities.

Not every opportunity is posted in the same place, and some of the best roles may come from less obvious sources. Broadening your search can open doors you didn’t even know existed, and it keeps the process feeling fresh and productive.

“You can definitely look for jobs online, but it’s also helpful to try to find opportunities through your university career office or through your network, whether that’s your friends and family or maybe organizations that you were part of on campus,” Zhao said.

Chris Martin, a lead researcher for Glassdoor, suggests relying on your broader network to find jobs or get referrals.

“One more piece of advice is on this old piece of research about how people actually get jobs—and I don’t think that it’s changed. That’s through this idea of weak ties,” Martin said in an interview with Investopedia. “It’s like a friend of a friend or like a co-worker of your parents, or someone that you would cross paths occasionally. That’s how people have historically gotten a lot of jobs.”

Also, consider attending meetups, joining online communities, and connecting with professionals on LinkedIn.

The Bottom Line

The tech industry is still thriving, but the path into it is no longer straightforward. A computer science or computer engineering degree alone isn’t a guarantee for a lucrative job–it’s just the beginning. As the field becomes increasingly competitive, securing a position as a software engineer might be more challenging, but it’s still possible as long as you’re willing to put in the work.