Is This The End For Entry-level Software Engineers? | Current Software Engineer Market Trend
Summary
TLDRThe 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
- π Tech industry layoffs have impacted around 50k people this year, with software engineers being the majority.
- π Despite layoffs, there are still 55,000 software engineering jobs available, indicating continued demand in the sector.
- π― The demand is skewed towards senior-level positions, with 73% of job openings targeting candidates with senior-level experience or above.
- π Entry-level jobs are shrinking, with only 7,000 positions available, creating a competitive market for new graduates.
- π« The popularity of computer science as a major leads to a high number of graduates, but limited entry-level opportunities.
- πΌ Internships are becoming more crucial as they often lead to full-time positions, with companies preferring to hire those already familiar with their environment.
- π Large tech companies are focusing more on hiring through internship programs, as it saves on training costs and ensures a better fit.
- π° Salaries in the tech industry, especially for experienced roles, have not seen significant reductions, maintaining the sector's attractiveness.
- π The tech field is becoming more challenging to enter, with a focus on hiring those with experience rather than just educational credentials.
- π 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
π 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.
π 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.
Mindmap
Keywords
π‘Tech layups
π‘Software engineer
π‘Job market
π‘Internships
π‘Salary
π‘Competitiveness
π‘Experience
π‘Entry-level jobs
π‘Senior-level positions
π‘Boot camps
π‘Return offer
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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