Elite CS Grads Jobless? The AI Paradox Shaking Tech Hiring

The Struggle at Top Universities

Graduates from some of the world's most prestigious universities are finding it nearly impossible to secure entry-level software engineering jobs, even with degrees from institutions like Stanford University. According to new reporting by the Los Angeles Times, this trend is creating a "very dreary mood on campus" among students.

Illustration by Tag Hartman-Simkins / Futurism. Source: Getty Images

The AI Factor in Hiring

A prevailing theory among hiring managers and industry leaders suggests that for every ten programmers, companies now only need two, plus a large language model (LLM). Amr Awadallah, CEO of Palo Alto-based AI startup Vectara, boldly stated: "The AI now can code better than the average junior developer that comes out of the best schools out there. We don't need the junior developers anymore."

Coping Strategies for Graduates

Faced with this challenging job market, recent graduates are adapting in several ways:

• Taking positions at companies they might have previously considered beneath their qualifications
• Founding their own startups to compete for venture capital funding
• Pursuing graduate degrees to enhance their resumes

The Contradiction in AI Research

While industry leaders claim AI is replacing junior developers, research tells a different story. One study found that when software developers use AI coding tools, they actually become 19 percent slower—the opposite of what economists, machine learning experts, and developers themselves predicted.

Another report from investment company Vanguard revealed that the top 100 occupations most exposed to AI automation are actually outperforming the rest of the labor market in both wage and job growth. This suggests AI systems are generally enhancing worker productivity rather than replacing them entirely.

The Real Problem: Economic Systems

Technology analyst Morten Rand-Hendriksen argues that the issue isn't AI itself, but how it's being implemented within our economic framework: "AI can't replace people, but it can create short-term financial gain at the cost of long-term skill- and knowledge loss."

He continues: "AI in all its forms can be a tool to extend our capabilities, but that requires leaders and an economic environment that values human work and human gains over increasing shareholder profits. AI is an exponentially replicating canary in the coalmine of capitalism."