Software engineering hiring has rebounded in recent months, but the recovery is unevenly distributed, with nearly 70% of US software development job postings in Q1 2025 targeting senior-level roles—up from 55% in early 2019. The trend reflects a broader shift in the tech sector, where AI tools are reshaping demand for engineering talent, according to data from Indeed.
The latest hiring data shows that software development postings remain 15% below pre-pandemic levels but have increased roughly 15% since early 2025. The rebound follows years of layoffs and a sharp decline in job postings starting in 2022, coinciding with the rise of generative AI tools like ChatGPT. While the overall number of postings has not fully recovered, the composition of roles has shifted dramatically toward senior positions.
Why senior engineers are in higher demand
Economists at Indeed Hiring Lab attribute the surge in senior-level postings to companies’ growing reliance on AI tools for routine coding tasks. Sneha Puri, an economist at Indeed Hiring Lab, noted that AI can handle well-defined, repetitive coding work, which historically employed junior engineers. Instead, companies now prioritize engineers who can direct AI outputs, identify errors, and make high-level decisions that AI cannot replicate.
"AI tools can increasingly handle the routine, well-defined coding tasks that used to be assigned to junior engineers," Puri said. "That shifts hiring demand toward workers who can direct AI output, catch its mistakes, and make the judgment calls AI can't — skills that typically come with experience."
The impact on early-career engineers
The shift has left early-career engineers facing a more challenging job market. With fewer entry- and mid-level roles available, recent graduates and less-experienced professionals may struggle to secure positions that traditionally served as stepping stones in the industry. The data suggests that the hiring rebound is not translating into broader opportunities for those entering the field.
Industry-wide trends
Software development is not the only sector experiencing a hiring rebound, but it stands out for the disproportionate share of senior-level roles. Among the 40+ employment sectors analyzed by Indeed, software development had the highest concentration of senior-level postings, highlighting the sector’s unique response to AI-driven changes.
The broader tech industry has also seen fluctuations in hiring, with postings declining during the 2022 downturn and beginning to recover in 2024. While the rebound is a positive sign for experienced engineers, the long-term implications for career progression and workforce diversity remain uncertain.