US tech grads face high jobless rates as Meta, Intel cut staff

Job prospects for computer science graduates in the US are declining as AI programming tools and tech layoffs reshape the industry.

Undergraduate enrollment in computer science reached over 170,000 in 2024, more than double the 2014 figure, according to the Computing Research Association.

However, recent grads face high unemployment, with jobless rates of 6.1% for computer science majors and 7.5% for engineering majors aged 22 to 27, based on Federal Reserve Bank of New York data.

These rates are more than twice those of recent biology and art history graduates.

Some students report applying to hundreds or even thousands of tech jobs at companies, nonprofits, and government agencies.

Large tech firms like Amazon, Intel, Meta, and Microsoft have cut jobs, limiting new graduates’ opportunities.

Industry and government leaders are shifting efforts toward AI training.

Microsoft pledged US$4 billion in technology and funding for AI training for students and workers. The Trump administration unveiled a national AI action plan to support this shift.

🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ Computer science unemployment represents a dramatic reversal from historical patterns

The current 6.1% to 7.5% unemployment rates for computer science graduates mark a stark contrast to the field’s historically tight job market1.

From 1994 to 2015, computer science employment grew dramatically, rising from 2.5% to 5.5% of all college graduates working in the field, driven by persistent labor shortages2.

As recently as 2002, computer science professionals enjoyed exceptionally low unemployment rates, with Stanford researchers noting “intense recruiting efforts and high salaries” due to worker shortages3.

This represents more than just a cyclical downturn. It is a significant shift where computer science graduates now face unemployment rates higher than those of biology and art history majors, challenging traditional employment hierarchies.

The reversal is particularly striking given that 52% of the Class of 2023 was underemployed one year after graduation, and layoff rates for young degree holders have nearly doubled since pre-pandemic levels4.