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Entry Level Job Market Report
Software Engineering
Overall Rating
High
Competition
Very High
Avg Entry Salary
$105k (USD)
Job Satisfaction
3.2/5
Growth Potential
Very High
About
Software engineers design, develop, and continuously improve systems & applications to solve real-world problems.
Overall Rating
High
Despite growing competitions for entry level roles, software engineers are paid well and have healthy, flexible working conditions. To break into software engineering, entry-level applicants must demonstrate real-world experience, AI-fluency, and excellent durable skills to collaborate, adapt, and learn new technologies.
Competition
Very High
Entry-level software engineering job openings have drastically decreased in 2024–2025 for several interrelated reasons:
AI automation: Rapid adoption of AI tools means companies now automate many routine coding and testing tasks once assigned to entry-level hires. Some leading tech companies are using AI to generate up to 30% of their code, enabling single experienced engineers to accomplish the work formerly done by multiple juniors. Research shows Big Tech cut new graduate hiring by 25% in 2024, with entry-level roles slashed to just 7% of new hires, a 25% drop from the year before.
Layoffs and overhiring correction: In 2023–2024, over 400,000 tech jobs (including 130,000 in 2024 alone) were eliminated as companies rebalanced after the pandemic-induced hiring boom. Firms that overhired during the peak are now recalibrating, leading to fewer entry-level opportunities and prioritizing experience in new job postings.
Macroeconomic and funding pressures: Interest rates rising from historic lows reduced venture capital investment and forced many startups to stall or freeze entry-level hiring. Software developer job listings have plummeted—standing at just 65% of February 2020 levels in early 2025 (down 3.5x from the mid-2022 boom), outpacing declines in most other sectors.
“Job-ready” hiring preferences: Companies increasingly want immediate contributors, not candidates requiring ramp-up training. As a result, employers are more likely to select experienced or AI-skilled talent over fresh graduates.
Globalization and outsourcing: With pressure to reduce costs, many U.S. and European firms are shifting junior tech work offshore where skilled professionals are available for far less, shrinking domestic entry-level postings.
AI automation: Rapid adoption of AI tools means companies now automate many routine coding and testing tasks once assigned to entry-level hires. Some leading tech companies are using AI to generate up to 30% of their code, enabling single experienced engineers to accomplish the work formerly done by multiple juniors. Research shows Big Tech cut new graduate hiring by 25% in 2024, with entry-level roles slashed to just 7% of new hires, a 25% drop from the year before.
Layoffs and overhiring correction: In 2023–2024, over 400,000 tech jobs (including 130,000 in 2024 alone) were eliminated as companies rebalanced after the pandemic-induced hiring boom. Firms that overhired during the peak are now recalibrating, leading to fewer entry-level opportunities and prioritizing experience in new job postings.
Macroeconomic and funding pressures: Interest rates rising from historic lows reduced venture capital investment and forced many startups to stall or freeze entry-level hiring. Software developer job listings have plummeted—standing at just 65% of February 2020 levels in early 2025 (down 3.5x from the mid-2022 boom), outpacing declines in most other sectors.
“Job-ready” hiring preferences: Companies increasingly want immediate contributors, not candidates requiring ramp-up training. As a result, employers are more likely to select experienced or AI-skilled talent over fresh graduates.
Globalization and outsourcing: With pressure to reduce costs, many U.S. and European firms are shifting junior tech work offshore where skilled professionals are available for far less, shrinking domestic entry-level postings.
-34%
Decrease in software engineering jobs between 2020-2025
FRED: Federal Reserve Economic Data
+10%
Change in the overall number of job listings 2020-2025
All jobs: +10%
Banking and finance: -7%
Sales: -8%
Marketing: -19%
Software development: -34%
Salary
$105K (USD)
Typical entry-level software engineering salaries range from $70k-$105k with the top 10% earning around $153k. Entry-level salaries are highest in San Francisco, New York, and Seattle (avg: $133k)
Best US Cities for Software Engineers (2025):San Francisco, San Jose, Seattle, Austin, New York, Boston, Denver. California and Texas have the most job openings. Arizona and Virginia have the most rapid growth in openings.
Top Employers
- Tech giants: Google (Alphabet), Amazon, Microsoft, Apple, Meta
- Other large employers: Cognizant, Insight Global, Eliassen Group (consulting/staffing), AT&T, Verizon, ServiceNow, Siemens, Comcast
Best US Cities for Software Engineers (2025):San Francisco, San Jose, Seattle, Austin, New York, Boston, Denver. California and Texas have the most job openings. Arizona and Virginia have the most rapid growth in openings.
Top Employers
- Tech giants: Google (Alphabet), Amazon, Microsoft, Apple, Meta
- Other large employers: Cognizant, Insight Global, Eliassen Group (consulting/staffing), AT&T, Verizon, ServiceNow, Siemens, Comcast
Job Satisfaction
3.2/5
Average happiness: 3.2 out of 5 stars, placing software engineers in the bottom half for overall career satisfaction compared to other jobs. High pay is a plus, but factors like lack of meaning, required continuous learning, stress and burnout affect ratings. Ratings vary by company size, sector and position.
Career Potential: Entry level software engineers can pivot from IC technical work to business, management or strategy & operations roles:
Career Potential: Entry level software engineers can pivot from IC technical work to business, management or strategy & operations roles:
Growth Potential
High
AI isn’t replacing software engineers, but it’s reshaping the work:
- Coding assistants (e.g., GitHub Copilot, Claude Code) handle routine coding and speed up development.
- Jobs focusing solely on coding may shrink; demand will stay high for engineers skilled in system design, problem-solving, communication, and AI integration.
- Human software engineers are essential for understanding business needs, system architecture, and complex problem-solving—skills AI cannot fully replicate.
- Adapting and embracing AI tools is crucial for future-proofing your career.
Software engineering remains a high-paying and dynamic career, but it’s a shifting, competitive market in 2025. Education, continuous skill development, and specializing in high-demand and emerging technologies are more important than ever. AI tools are partners, not replacements—engineers who can leverage these tools will stay ahead. Location and employer choice significantly affect compensation and opportunities, with tech hubs still leading in pay and volume.
- Coding assistants (e.g., GitHub Copilot, Claude Code) handle routine coding and speed up development.
- Jobs focusing solely on coding may shrink; demand will stay high for engineers skilled in system design, problem-solving, communication, and AI integration.
- Human software engineers are essential for understanding business needs, system architecture, and complex problem-solving—skills AI cannot fully replicate.
- Adapting and embracing AI tools is crucial for future-proofing your career.
Software engineering remains a high-paying and dynamic career, but it’s a shifting, competitive market in 2025. Education, continuous skill development, and specializing in high-demand and emerging technologies are more important than ever. AI tools are partners, not replacements—engineers who can leverage these tools will stay ahead. Location and employer choice significantly affect compensation and opportunities, with tech hubs still leading in pay and volume.
