Is This The End For Entry-level Software Engineers? | Current Software Engineer Market Trend

Summary

The video discusses the current state of the tech industry, highlighting the impact of layoffs on software engineers and the competitive job market. Despite 50k tech layoffs, there are still 55k job openings, with a significant focus on senior roles. The speaker advises that strategies for breaking into tech have evolved; internships are crucial for entry-level positions and can lead to full-time roles. While the tech field remains lucrative, it's becoming harder to enter, emphasizing the importance of experience and strategic planning for aspiring software engineers.

Takeaways

• 📉 Tech industry layoffs have impacted around 50k people this year, with software engineers being the majority.
• 🔍 Despite layoffs, there are still 55,000 software engineering jobs available, indicating continued demand in the sector.
• 🎯 The demand is skewed towards senior-level positions, with 73% of job openings targeting candidates with senior-level experience or above.
• 📚 Entry-level jobs are shrinking, with only 7,000 positions available, creating a competitive market for new graduates.
• 🏫 The popularity of computer science as a major leads to a high number of graduates, but limited entry-level opportunities.
• 💼 Internships are becoming more crucial as they often lead to full-time positions, with companies preferring to hire those already familiar with their environment.
• 🚀 Large tech companies are focusing more on hiring through internship programs, as it saves on training costs and ensures a better fit.
• 💰 Salaries in the tech industry, especially for experienced roles, have not seen significant reductions, maintaining the sector's attractiveness.
• 🌟 The tech field is becoming more challenging to enter, with a focus on hiring those with experience rather than just educational credentials.
• 📈 For those considering a career in tech, it's important to reassess the risks and rewards, and prioritize gaining practical experience.

Q & A

How many tech workers have been impacted by layoffs according to the data from the first source mentioned in the script?

Around 50,000 tech workers have been impacted by layoffs based on the data from the first source mentioned in the script.

What is the limitation of using layoffs.fi as a data source for understanding the tech economy?

The limitation of using layoffs.fi as a data source is that not all layoffs are captured on the website, and it may not be fully representative of the entire tech economy.

What was the observation made from the data on levels.fii regarding job postings for software engineers?

The observation was that out of 55,000 job postings, 35,000 of them were looking for senior-level software engineers, indicating that about 73% of available job openings are for senior and above levels.

What does the script suggest about the current state of entry-level software engineering jobs?

The script suggests that entry-level software engineering jobs are shrinking, with only 7,000 available positions, which is concerning given the number of computer science graduates entering the market each year.

How has the strategy for landing a software engineering job changed according to the speaker's experience?

The strategy has shifted from focusing on grades and opportunities like teaching assistance to securing internships that can transition into full-time roles, as companies are more likely to backfill entry-level positions through internship programs.

What is the speaker's recommendation for those considering a career in tech based on the current job market?

The speaker recommends re-evaluating the decision to enter tech, especially for the lucrative pay, and emphasizes the importance of finding internships that offer return offers to secure an entry-level job.

How has the demand for experienced software engineers been reflected in the data from the second source mentioned in the script?

The demand for experienced software engineers is reflected in the data showing that a larger percentage of job postings are for senior-level positions, and companies prefer to hire and train from internships rather than entry-level positions.

What observation was made regarding the salary data on levels.fii?

The observation was that while the exact data may not be accurate due to potential delays in reporting or the opening of positions for internal transfers, there is a general trend of higher salaries for senior-level positions compared to entry-level ones.

What does the script imply about the future of internships in the tech industry?

The script implies that internships will play a more significant role in the hiring process, as companies can save on training costs by hiring interns who are already familiar with the work environment and internal tools.

How has the popularity of computer science as a major impacted the job market for software engineers?

The popularity of computer science as a major has increased the number of graduates, leading to a more competitive job market, particularly for entry-level positions.

What is the speaker's perspective on the overall salary trajectory for software engineers at larger tech companies?

The speaker believes that the overall salary trajectory for software engineers at larger tech companies has not taken a significant hit and that tech salaries are not being reduced significantly, indicating continued demand for experienced professionals.

Outlines

00:00

📉 Tech Layoffs and Job Market Analysis

This paragraph discusses the impact of recent layoffs in the tech industry, highlighting that around 50,000 tech professionals have been affected. The speaker uses data from layoffs.fi to emphasize the situation, acknowledging that not all layoffs are captured but the data serves as a good indicator of the tech economy's health. The speaker also explores the flip side by examining recent salary postings and job openings. The key finding is that while there are 55,000 software engineering jobs available, a significant 73% are targeted at senior-level engineers, leaving only 7,000 entry-level positions. This indicates a competitive job market, especially for new graduates, and suggests that traditional strategies like focusing on grades and campus opportunities might not be as effective as securing internships that can lead to full-time positions.

05:00

🎓 Navigating the Changing Tech Job Landscape

The speaker continues the discussion on the tech job market, emphasizing the challenges faced by those entering the field due to the scarcity of entry-level jobs compared to the demand for senior-level engineers. The paragraph also addresses the shift in hiring practices, where companies prefer to train talent from within, often through internships, as it saves on recruitment costs and allows for a smoother transition into the company culture. The speaker advises that the traditional college-to-career path may no longer be as straightforward and that individuals seeking to break into tech should consider alternative routes and connections to qualify for more senior roles. Despite the competitive landscape, the speaker notes that tech salaries have not seen significant reductions, indicating that experienced software engineers are still in demand. The advice given is to re-evaluate the decision to enter tech, focusing on gaining relevant experiences and internships that can lead to a successful career start.

Keywords

💡Tech layups

The term 'Tech layups' refers to the recent trend of layoffs in the technology sector. It highlights the impact on software engineers and other tech professionals, indicating a shift in the job market. In the video, the speaker uses this term to discuss the challenges faced by individuals in the tech industry due to job cuts, emphasizing the need to analyze both the layoffs and job postings to understand the full picture of the tech economy.

💡Software engineer

A software engineer is a professional who applies the principles of software engineering to the design, development, maintenance, and testing of software systems. In the context of the video, the term is central to the discussion, as the speaker explores the job market for software engineers, the impact of layoffs, and the competition for entry-level positions.

💡Job market

The job market refers to the environment in which employers and potential employees interact, including the demand for labor and the availability of job opportunities. In the video, the job market for tech professionals, particularly software engineers, is analyzed in the light of recent layoffs and job postings, revealing trends and challenges for job seekers.

💡Internships

Internships are temporary positions or work experiences that individuals, often students or recent graduates, undertake to gain practical skills and experience in their field of interest. In the video, internships are highlighted as a crucial pathway for individuals to transition into full-time positions, with many companies preferring to hire from their intern pool rather than seeking external candidates for entry-level roles.

💡Salary

Salary refers to the compensation paid to an employee for their work, typically on a monthly or annual basis. In the context of the video, salary is discussed as an indicator of the demand and value placed on software engineers in the tech industry. Despite the challenges in the job market, the speaker notes that salaries for tech professionals have not experienced a significant reduction, signaling that experienced software engineers are still highly valued.

💡Competitiveness

Competitiveness refers to the degree of rivalry or contest among individuals or entities for a particular goal or resource. In the video, the competitiveness of the tech job market is emphasized, particularly for entry-level positions, as the number of available jobs is far outweighed by the number of graduates and job seekers, making it harder for newcomers to break into the field.

💡Experience

Experience in a professional context refers to the knowledge, skills, and practical understanding that an individual gains through work or other activities related to their field. In the video, the importance of having relevant work experience is stressed, as it makes candidates more attractive to employers, especially in a competitive job market.

💡Entry-level jobs

Entry-level jobs are positions that typically do not require prior experience and are designed as a starting point for individuals to gain work experience in a particular field. In the video, the scarcity of entry-level jobs in the tech industry is discussed, highlighting the challenges faced by newcomers trying to break into the field of software engineering.

💡Senior-level positions

Senior-level positions are roles within an organization that typically require extensive knowledge, skills, and experience in a specific field. These roles often come with greater responsibilities and higher compensation. In the video, the speaker notes a higher demand for senior-level software engineers, indicating a preference for experienced candidates over entry-level ones.

💡Boot camps

Boot camps, in the context of the tech industry, refer to intensive, short-term training programs designed to equip individuals with the skills needed for specific tech jobs, such as coding or software development. In the video, the speaker suggests that entering the tech field through boot camps or other alternative education paths has become more challenging due to the competitive job market.

💡Return offer

A return offer is a job offer extended to an intern by the company they interned with, typically with the expectation that the intern will join the company full-time after completing their education or a specified period. In the video, the significance of securing a return offer is emphasized as it provides a direct pathway to a full-time position and increases the chances of employment upon graduation.

Highlights

Tech industry layoffs have impacted around 50k people this year, indicating a shift in the tech economy.

While layoffs are prevalent, there are still 55k software engineering jobs available, showing companies continue to hire.

Job postings may not be entirely accurate due to factors like immediate closures after roles are filled or openings for internal transfers.

73% of current job openings are for senior-level software engineers, reflecting a shrinking number of entry-level positions.

The number of entry-level jobs is insufficient compared to the number of computer science graduates, creating a competitive market.

Focusing on grades and relevant experiences in college may no longer be as effective for securing software engineering jobs.

Internships are crucial as they often lead to full-time positions, with companies preferring to fill roles through these programs.

Larger tech companies are focusing their entry-level hiring through internship programs, saving on training costs.

The competition for entry-level jobs is steep, and alternative routes like boot camps may be more challenging without connections or qualifications for senior roles.

Despite the challenges, tech salaries, especially at bigger companies, have not seen significant reductions.

The tech field is becoming more difficult to enter but remains lucrative for those with experience.

For those in school, prioritizing internships with potential return offers is more important than ever.

The tech industry is still desirable but requires a re-evaluation of risks and rewards for newcomers.

The shift in hiring practices favors those with experience, making it harder for newcomers to break into the field.

The tech industry's hiring landscape is changing, emphasizing the need for adaptability and strategic planning for job seekers.

Transcripts

there has been a search in Tech layups

and a lot of these news are making us

think like oh software engineer or

coding in general is coming to an end

first let's look at the data based on

layoffs the FI we can clearly see so far

this year there has been almost 50k tech

people who were impacted by the layoffs

and of course not all the layoffs are

also captured on this website but

overall it is a pretty accurate data

point of course not all of them are

software Engineers but majority are in

this Tech area it kind of provide us a

very good indicator of how the tech

economy is doing so what does this mean

I also did another research because you

kind of have to look at both side of the

picture you can't just purely look at

the layouts and be like oh we are doomed

but what can we make sense of these data

some of the data point I find very

useful it's a level that fii so I took a

look at people who Rec recently posted

their salary and people who are posting

jobs so what did I learn from it based

on level the fii you can create your own

filter and I'm only focusing on the past

60 days so pretty much what has happened

this year so far some interesting

observation I have found is that we can

see there are 55,000 jobs that's looking

for some sort of software engineering R

so that's kind of relieving like oh yeah

sure there's a lot of layups but there's

also a lot of companies that are still

hiring aggressively not considering

people who already recently got a new

job offer of course many of these job

postings are also not really as accurate

as it could be like people may not close

it after they fill up the role or people

just open a job because they have to in

order for someone internally to transfer

to a new role so a lot of time it can

create this like you know sense of oh

there might be too many jobs I found the

data to become very interesting once I

start playing around with it for example

when I try to filter it by level I can

clearly see majority of the company out

of the 55,000 35,000 of them are looking

for senior level software engineers and

if you tarle anything other than entry

level and internship the number become

40,000 that means about 73% of all the

available job openings are looking for

senior and above this can be concerning

for a lot of people who are studying

software engineering right now or people

who are looking into getting a software

engineering job this clearly shows the

number of entry level jobs are really

shrinking because when I focus only on

entry level jobs there are only 7,000

jobs as we know computer science has

become a very popular major there's

probably more than 100,000 student

graduating every single year and at a

given time of course students are all

graduating around around the summer time

but at a given time there are only 7,000

available entable jobs that just shows

how the market is definitely getting

very very competitive for this Ang World

So based on this data what worked for me

in college getting me to that software

engineering job May no longer work

anymore what do I mean so in college I

focus a lot on my grades I focus a lot

on getting opportunities such as

teaching assistance which I believe can

help me land whatever job I need in the

future cuz you know companies care about

relevant experiences while relevant

experiences are still useful but what I

think is way more important nowadays is

to get that first internship and have it

transition translate into that full-time

row because nowadays most cases what

happen is people who have an internship

they go for that return offer they go

straight into the company after

graduation so the company will no longer

try to hire as many entry level now they

can just back fill the road via

internship programs and I do think this

will definitely be something we see way

more often moving forward especially at

these bigger tech companies a lot of

them they are not hiring very

aggressively right now and many of them

are still looking for internships and

why would they not want to you know if

they have an internship they already

trained you you already familiarize

yourself with the internal tools

what type of work environment it is like

it saves them a lot of money I can

totally see how a lot of company will

focus majority of their ENT Lev heart

via the internship funnel and another

observation I have made is if I go into

the salary category where people enter

and share their salary the website kind

of encourages you to post your own Data

before you can view anything and the

posting data sometimes you might not

also post the exact date but so it may

not be as accurate but the similar type

of observation can also be found of

course entry level is such a smaller

percentage versus Senior and above

because once you become a software

engineer pretty much you fall into the

category of senior and above after you

work two plus years so of course the

number of engine level by default is a

smaller piece of pipe but once again the

data here shows entry level jobs is a

smaller percentage of the overall higher

in the past year so this is definitely

concerning for people who are in school

so I do believe yeah we have a lot of

software engineer or a lot of people who

are capable of doing software

engineering related works but we still

are looking for people who are more

senior who are more experienced cuz

those are the ones that's harder or less

in line to be replaced but any of these

generative AI Technologies whereas ENT

level rows it would rather train you inh

housee meaning the get get you from

internship or whatsoever and spend the

money and time in training you and then

grow you into their own senior level

these are some sort of observation that

I have found so would I still recommend

people who are looking for a job via

Boot Camp or any alternatives rather

than going to school now seems to be a

lot trickier and harder you kind of have

to know some sort of connection or find

or somehow built to qualify for a more

senior level role or of course now if

you're looking for an ENT L world the

competition might be a lot more steep

but what we do know for a fact at least

for now is that the overall salary

trajectory hasn't take a huge hit at

these bigger tech companies or overall

Tech salaries aren't being reduced

significantly yet so this overall still

signals that hey software engineer are

still desirable but we only want people

who have EXP experiences which makes the

field harder to get into and I guess

overall it kind of benefits people like

myself who have been in this field but

it definitely hurts people who are

trying to get into the field it's not

going to be us easy to break into it's

kind of like now you have to apply to a

university and you have to have all

these checkbox before you can get into

the special programs good SAT score good

GPA etc etc where us where Translate to

do you have past internship do you have

number of years of work

experiences if so then yeah I guess

there's still a bunch of opportunities

available for you so I think the

recommendation here I will say is yeah

if you're thinking about breaking into

Tech you really have to re-evaluate like

is this risk worse what you are looking

for are you doing it because you think

it's a lucrative field because sure

right now it's still lucrative but

definitely a lot harder for people

people to get into just for that

lucrative pay so definitely reevaluate

but if you're in school now I would say

it's more important than ever to find

some sort of internship that will offer

return offer and translate that into

your primary ENT job and you can always

switch after that so yeah I hope this

video was informative and uh let me know

if you have any questions feel free to

leave a comment and thank you so much

for watching make sure to like comment

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