TLDR: Indeed’s latest report indicates a 36% drop in tech job postings since early 2020, with artificial intelligence significantly affecting entry-level positions. While specialized AI and machine learning roles remain in high demand, traditional and junior tech roles are experiencing a sharp decline.
A recent report from the career website Indeed highlights a substantial downturn in the tech job market, with job postings down 36% from early 2020 levels as of July 2025. This decline is attributed to a combination of broader economic conditions and the increasing impact of artificial intelligence (AI) on the industry.
The report indicates that the deepest impact of this shift is being felt by entry-level tech jobs, particularly those requiring less than five years of experience. Data from SignalFire’s ‘State of Talent Report 2025’ further corroborates this, showing that entry-level hiring in big tech saw a 25% drop in 2024 and is down over 50% from pre-pandemic levels in 2019.
Traditional mid-tier and entry-level tech positions have been hit particularly hard. This includes roles such as junior developers (across Android, Java, iOS, .Net, and web development), where postings have plummeted by over 60%. IT support and other traditional software roles are also experiencing steep declines. Additionally, entry-level tech jobs in areas like marketing, administrative assistance, and human resources are seeing significant reductions, largely due to the overlap with tasks that generative AI tools can now perform.
Conversely, specialized roles within AI and machine learning continue to thrive. Positions like machine learning engineers and AI/ML specialists are in strong demand, with job postings remaining above pre-pandemic levels. Enterprise technology roles, such as SAP consultants, and data science positions also show resilience in the current market. These highly specialized AI-focused roles command impressive salaries, with machine learning engineers earning a median annual pay of approximately $260,000 in 2024.
Brendon Bernard, a senior economist at Indeed, noted that these specialized positions are among the few tech jobs where demand has remained robust despite widespread hiring freezes. The geographical impact is also evident, with tech hiring plunging in major AI hubs like the San Francisco Bay Area, Boston, and Seattle.
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The broader implications of AI on the workforce are a growing concern. The World Economic Forum’s ‘Future of Jobs Report 2025’ reveals that 40% of employers anticipate reducing their workforce in areas where AI can automate tasks. This sentiment is echoed among younger job seekers, with a survey indicating that 49% of Gen Z job hunters believe AI has diminished the value of their college education in the job market.
