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.
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-34%

Decrease in software engineering jobs between 2020-2025

FRED: Federal Reserve Economic Data

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+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
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Tech giants: Google (Alphabet), Amazon, Microsoft, Apple, Meta
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Other large employers: Cognizant, Insight Global, Eliassen Group (consulting/staffing), AT&T, Verizon, ServiceNow, Siemens, Comcast
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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: 
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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.