Graduates entering the technology sector today face a rapidly evolving landscape marked by significant innovation and multi-faceted challenges. The trajectory of their careers is shaped by a shifting global economy, changing societal expectations, geopolitical uncertainties and new attitudes about work/life balance. Key trends such as the rise of artificial intelligence (AI) and the acceleration of remote work are also playing significant roles. Recent graduates are entering a world filled with hurdles and implications that make their professional futures uncertain.
The post-graduation environment is undeniably complex. Some argue that there is an abundance of opportunities, driven by the insatiable demand for tech talent and continuous technological advancements. On the flip side, others contend that graduates face significant struggles due to heightened competition, economic uncertainties, and the rapid pace of change within the industry. Both perspectives highlight the dual nature of the current job market, emphasizing the need for strategic preparation and adaptability.
Economic context and job market realities
Tech graduates today typically hold a bachelor’s degree in computer science, Information Technology, Software Engineering or a related field. A portion may also possess advanced degrees in specialty areas such as AI, data science or cybersecurity. Many have obtained industry-recognized certifications in cloud computing (AWS, Google Cloud), networking (Cisco) or specific programming languages (Python, Java, C++). They may have experience with software development tools such as Git and Docker, and familiarity with frameworks like React, Angular and Django. They are often versed in emerging technologies like AI, machine learning and data analytics.
In tandem with these technical capabilities, they possess vital soft skills such as communication, teamwork, problem-solving and project management. Work experience among tech graduates typically includes internships or co-op programs that provide practical experience and industry exposure. Many have participated in academic or personal projects, hackathons and open-source contributions. Career aspirations often center around securing positions at leading tech companies such as Amazon, Google, Apple and Microsoft or innovative startups. Some may also aim for roles in tech-driven sectors such as healthcare, finance or energy, where technology plays a crucial role in driving innovation and efficiency.
Despite all these qualifications, tech graduates are discovering the job market is capricious, with robust demand for some tech professionals and disheartening outcomes for others.
The economic landscape has shifted dramatically from years gone by. A tech layoff wave is still going strong in 2024, following significant workforce reductions in 2022 and 2023. This year alone has seen 60,000 job cuts across 254 companies. Companies like Tesla, Amazon, Google, TikTok, Snap, and Microsoft have conducted sizable layoffs, and smaller startups have had to shut down operations altogether. Current job postings for software development roles on Indeed have dropped 30% from pre-pandemic levels.
Three trends
Navigating this landscape requires strategic planning and an understanding of market trends.
- Demand and supply dynamics: Subject to the laws of supply and demand, the tech space had a surge during the COVID-19 pandemic when digital traffic was at maximum usage and then fell during the post-pandemic period because of shrinking technology engagement.
- Remote work and global opportunities: The COVID-19 pandemic also accelerated the adoption of remote work, offering graduates the flexibility to work for companies across the globe. This shift expanded the talent pool and intensified global competition. It also created new expectations for working with remote collaboration tools and adhering to new levels of self-discipline.
- Startups versus established companies: Graduates looking at both startups and established corporations have more things to consider. Startups once offered the allure of rapid growth, diverse responsibilities and a dynamic work environment. Now, they are having trouble attracting venture capital and securing the necessary momentum to succeed.
Cutting entry-level jobs
Established companies, on the other hand, once offered stability, structured career paths, and extensive resources for professional development. Today, more and more companies are cutting entry-level jobs in favor of using generative AI to automate tedious tasks that new hires would previously have done to gain experience in the field.
- Gen-Z reputation — Most unfortunate are the results of a recent study that reported 45% of hiring managers say Gen Z is the worst to manage. Before even applying, young graduates are criticized for having too many rules, refusing to comply with corporate demands, being oppositional and lacking etiquette, reliability and flexibility. Their fate is in the hands of hiring managers who start out with a skewed perspective while concurrently receiving hundreds of applications. They are using this mindset to develop stricter job requirements to trim the pool of candidates while often putting those on the shortlist through five to eight interview rounds.
- Geopolitical issues — The global economic impact of the Russia-Ukraine war, coupled with the ongoing conflict in Gaza, has strained the job market and reduced opportunities for new graduates. Many American-allied countries have stopped operations in Russia, incurring significant financial losses and creating economic uncertainty. Similarly, the conflict in Gaza has disrupted regional economies and further complicated global supply chains, adding to the overall instability and hampering the ability of tech companies and startups to thrive.
- Reality check — For those who say students are facing a shrinking job market, they must remember that in general, the job market has never been very friendly to new college graduates. Despite some negative news, the profession still boasts an unemployment rate under 3%. For those with competency and experience, the information technology field remains promising. In an environment where only 12% of IT staff and 9% of IT managers feel insecure about their jobs, those with a combination of IT and business skills have greater opportunities.
Not all doors to employment are shut and not everyone has to start their career at Meta or Apple. The National Association of Colleges and Employers (NACE) has projected the starting salary to be an average of about $75,000. This year’s graduates in computer science are expected to receive a 2.7% higher offer than last year’s benchmark.
Despite qualifications, fresh technology graduates are finding some professions are in demand while others are finding it very hard to land a spot. Source: Prostock Studio/Adobe Stock
The disconnect
There is a significant disconnect between what tech graduates bring to the market and what companies seek in new hires. While graduates possess solid technical knowledge, they often lack the necessary soft skills and real-world application experience that employers prioritize. This gap in expectations leads to graduates struggling in interviews and failing to demonstrate their ability to collaborate effectively, present ideas convincingly and adapt to the dynamic demands of the workplace.
- Theoretical knowledge versus practical skills — The tech industry is characterized by constant innovation and rapid advances. While academic institutions provide a strong theoretical foundation, there is often a gap in applying this knowledge to real-world scenarios. Fresh graduates can find themselves ill-equipped to handle the complexities of the tech industry because college curricula fail to keep pace with technological changes. As a result, they lack the necessary skills to adapt to the ever-evolving tech landscape, making them less competitive.
- Lack of industry exposure — Many college graduates are underprepared due to a lack of industry exposure through internships, cooperative education or collaborative opportunities with industry partners. For instance, at the City University of New York (CUNY), America’s largest urban university, only 10% of computer science graduates had a paid internship by graduation. This lack of practical experience can lead to automatic exclusion from candidate pools, as employers increasingly prioritize hands-on experience and familiarity with industry practices.
- Don’t forget the soft skills — Not only do tech jobs require technical expertise, but graduates must also offer a range of soft skills, emotional intelligence and the ability to communicate effectively. Unfortunately, college curricula often prioritize technical knowledge at the expense of developing these competencies. Consequently, graduates often struggle to express themselves adequately in an interview situation and fail to demonstrate their ability to collaborate effectively with colleagues, present their ideas convincingly or adapt to the dynamic demands of the workplace.
The need for lifelong learning and professional development — To stay competitive, graduates must show a commitment to ongoing study, often pursuing additional certifications and courses in emerging technologies. Building a professional network and participating in professional organizations, conferences, and online communities provides opportunities for knowledge sharing and finding mentors who can offer guidance and support. These practices nurture adaptability and resilience, traits essential for successfully navigating the uncertainties and setbacks one might experience during the job hunt.
Conclusion
As technology changes the way we conduct business, the job market will evolve too. This will bring new challenges for businesses but also exciting career opportunities for those entering the job market. Students and recent graduates have a lot of options opening up before them, but it is important to understand how the latest innovations are shaping the technology sector.
By bridging the gap between academic preparation and industry demands, tech graduates can navigate the complexities of the modern landscape and contribute to shaping an innovative, inclusive and sustainable future.
About the author
Emily Main holds a J.D. in Compliance Law and a BS in Telecommunications. With extensive experience in the intersection of technology and law, Main has contributed to numerous publications and conferences, exploring technical challenges, innovations, trends and applications. Passionate about communication and networking, she is dedicated to sharing the latest advances in the field with a professional engineering audience through engaging and informative articles.
