Graduates from top US universities struggle to find jobs — many are leaving the tech industry

The Los Angeles Times reports on this trend, citing professors and students from elite universities. Stanford bioengineering professor Jan Liphardt noted that computer science graduates are «experiencing serious difficulties finding jobs,» calling the situation «insane.» One student described a «depressing atmosphere» pervading campus.

Among employers, there is a growing sentiment that companies no longer need large numbers of entry-level programmers. The prevailing logic suggests that a task that previously required ten developers can now be completed by two specialists plus a language model.

AI startup Vectara’s CEO Amr Awadallah bluntly stated that current models «write code better than the average junior developer even from top universities» and that companies «no longer need juniors.»

As a result, many graduates are forced to accept positions outside big tech and the startup ecosystem where they had hoped to build their careers. Others are pursuing alternative strategies: enrolling in graduate programs, launching their own startups, or trying to establish themselves in adjacent fields.

However, research data paints a more complex picture. Earlier this year, some studies found that using certain AI coding tools can slow some programmers' workflows by about 19% on average — a finding that contradicts some expectations.

Additionally, a report by investment firm Vanguard found that occupations most susceptible to AI automation were, in the examined period, experiencing faster-than-market growth in both salaries and employment. This suggests AI is changing the nature of work rather than displacing humans en masse.

Technology analyst Morten Rand-Hendriksen believes the problem lies not so much in AI systems themselves but in economic incentives. According to him, AI may deliver short-term financial benefits by reducing the incentive to train and develop early-career professionals, which, in the long term, can lead to a loss of skills and expertise.