islander11/Getty Images
Industry eyebrows were raised recently at New York Federal Reserve Bank data showing software engineering graduates face higher unemployment rates than art history majors.
The unemployment rates for computer engineering and computer science were 7.5% and 6.7% respectively. By contrast, the unemployment rates for art history and social services majors were 3% and 1.7% respectively.
Also: The best AI for coding in 2025 (including a new winner - and what not to use)
In all fairness, it's also worth noting that the underemployment rate for art history majors was 46.9%, compared to 17% for computer engineers, meaning graduates in the former can be relegated to low-paying or part-time jobs.
Still, there has been a noticeable dip in software hiring. The St. Louis Federal Reserve also just posted data on software job openings as seen on Indeed, recording a hiring rate lower than during the coronavirus pandemic.
So, is this trend just a cyclical dip in software and IT hiring, or is something more pervasive happening?
A new IT industry
Industry leaders have mixed feelings on the data. "This is not a sudden development -- it's an issue that's been building up for years," said Ivan Gekht, CEO of Gehtsoft, a custom-design software development firm.
"For nearly two decades, we've seen a surge in the popularity of the IT industry, particularly in coding roles. This led to an explosion of online courses and boot camps to quickly train people for entry-level jobs, which were in high demand during the rapid growth phases of many tech companies. In the race to demonstrate expansion, management often over-hired."
... continue reading