
Despite widespread fears that artificial intelligence would eliminate software engineering jobs, hiring data from venture firm SignalFire shows the opposite is happening. Engineering roles at major tech companies declined only 11% compared to a 25% drop in overall hiring, and engineers now represent a larger share of new hires than they did in 2019. The pattern suggests AI tools are making engineers more productive and generating more work for them, not replacing them.
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Research firm SignalFire analyzed hiring across more than 80 million companies and found that while total hiring at large tech companies dropped 25% compared to 2019 levels, engineering roles declined only 11%. Engineers comprised 55% of all new hires in 2025 at the 12 major tech companies SignalFire tracked, up from 46% in 2019. Early-stage startups hired 7% more engineers in 2025 than in 2019.
Why it matters
The data contradicts expectations that AI-powered coding tools would eliminate engineering jobs first. Instead of layoffs reducing engineering headcount, the numbers show engineers remain in high demand. This suggests that rather than replacing engineers, AI tools are making them more productive and creating more work—a pattern economists call the Jevons paradox, where efficiency increases demand for a resource instead of reducing it.
What to watch
Nvidia CEO Jensen Huang stated that since all engineers at Nvidia are now using agentic AI (self-directed AI agents), software engineers are busier than ever, constantly generating new ideas for AI to execute. This reflects the real-time dynamic: AI is expanding the scope of engineering work rather than shrinking the job market.
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