The tech industry, once a golden ticket to prosperity, is facing an unprecedented crisis. A recent computer science graduate from a top-tier university, Zach Taylor, made headlines after applying to nearly 6,000 tech jobs in 2023 without securing a single offer.

Even a rejection from McDonald’s for “lack of experience” underscored the dire state of the job market for IT specialists. This story is not an outlier but a symptom of a broader trend: unemployment among computer science graduates has surged, surpassing rates for fields like journalism, and the era of six-figure salaries for tech newbies appears to be over.

As opportunities dwindle, some tech graduates are eyeing factory jobs or fast-food counters, a stark departure from the Silicon Valley dream.

A Brutal Job Market for Tech Graduates

The numbers paint a grim picture. Unemployment among computer science graduates aged 22-27 has reached 6.1%, with computer engineering majors facing an even bleaker 7.5%. These figures are more than double the unemployment rates for biology or art history graduates and surpass the 4.4% rate for journalism majors.

Nearly one in four computer science and engineering graduates in 2025 is either unemployed or working in non-technical roles, a sharp rise from one in ten in 2019.

This shift marks a dramatic reversal from the tech boom of the early 2000s, when computer science degrees guaranteed high salaries and intense recruiting. The “learn to code” mantra, once a promise of financial security, now feels like a cruel jest. Manasi Mishra, a 21-year-old Purdue graduate, expected six-figure offers but landed only one interview – at Chipotle, which she didn’t get. Stories like these highlight a market saturated with talent but starved of opportunity.

What’s Driving the Crisis?

Three major forces are reshaping the tech job landscape:

AI Automation: The rise of AI coding assistants is automating tasks once reserved for junior developers. Companies are using AI adoption as a pretext to scale back hiring. This “AI doom loop” sees graduates using AI to mass-apply to jobs, only to be auto-rejected by AI-driven recruitment systems, sometimes within minutes.
Mass Layoffs: Major tech firms have slashed over 100,000 jobs in 2025, following 150,000 cuts in 2024. These layoffs, driven by cost-cutting and economic uncertainty, have flooded the market with experienced developers who now compete with new graduates for the few remaining roles. Entry-level positions, in particular, have plummeted, with a 21% drop in junior developer vacancies compared to pre-COVID levels.
Oversupply of Graduates: U.S. universities produced approximately 170,000 IT graduates in 2024, more than double the number from 2014. This surge has created fierce competition for limited positions, leaving many graduates, like Taylor, sending out thousands of resumes with little to no response.

The End of Six-Figure Dreams?

The tech industry’s reputation for lavish salaries is crumbling. While computer science graduates still command the highest starting salaries among majors -around $80,000 – these figures are no longer guaranteed. Experts argue that the era of six-figure starting salaries for entry-level tech roles is fading, replaced by a reality where even top-tier graduates struggle to break in.

The slowdown isn’t limited to tech giants. Startups, once a haven for junior talent, are facing compressed valuations, curtailing their hiring appetite. Meanwhile, visa policies have drawn criticism for exacerbating job scarcity, as companies prioritize experienced foreign workers over domestic graduates.

From Code to Counters: A New Reality

Faced with rejection from tech firms, many graduates are pivoting to non-technical roles. Fast-food chains like McDonald’s and Chipotle are becoming fallback options, though even these jobs are proving elusive for some. Others are considering factory work or pursuing advanced degrees to delay entering a brutal job market. The frustration is palpable: graduates who invested years in rigorous STEM programs now find themselves competing for minimum-wage roles or contemplating entirely different career paths, such as environmental sciences, where unemployment rates are as low as 1.5%.

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A Structural Shift or Temporary Slump?

Some experts see this as a structural shift in the tech industry, driven by automation and a recalibration of workforce needs. Others believe it’s a temporary slump, with demand for skilled tech workers potentially rebounding as economic conditions stabilize.

For now, though, the reality for many tech graduates is a humbling one: thousands of applications, endless rejections, and a growing realization that the industry they trained for may not have a place for them.

As Zach Taylor put it, “I studied code to escape the grind, not to end up flipping burgers – or worse, not even getting that job.”