Unexpected Job Market Shift: Graduates in Computer Science Suffer Higher Unemployment Rates Amid AI-Induced Layoffs and Auto-Rejection Systems

The long-held notion of coding equating to prosperity appears to be unraveling.

A Federal Reserve Bank of New York study reveals that computer science graduates are facing unemployment rates ranging from 6.1% to 7.5%, significantly higher than their counterparts majoring in biology and art history. A stark report in The New York Times paints a bleak picture of the current job market for new computer science graduates.

Individual accounts are disheartening. Manasi Mishra, a recent graduate from Purdue, was promised six-figure starting salaries but could only secure one interview, at Chipotle, which she did not land. Meanwhile, Zach Taylor, a 2023 graduate from Oregon State, has applied to over 6,000 tech jobs, receiving just 13 interviews and no offers. Even McDonald’s rejected him for lacking experience.

The suspected culprits are the increasing use of AI in programming that eliminates junior positions, coupled with job cuts at companies like Amazon, Meta, and Microsoft. These students find themselves in what they term an “AI doom loop,” where they utilize AI to mass-apply for jobs, only to have their applications auto-rejected by these same companies within minutes, thanks to the use of AI in the hiring process.

However, there is some positive news. Manasi Mishra secured a job following a cold application that ultimately proved successful. Yet, it’s not in the field of software engineering.