CS Graduates Face Unemployment Spike as AI Cuts Roles

CS Graduates Confront Unemployment Surge

New data from the Federal Reserve Bank of New York reveals fresh computer science graduates are experiencing unemployment rates between 6.1% and 7.5%, more than double the 3% seen by biology and art history majors.

The narrative of coding as a guaranteed ticket to prosperity is faltering, and the numbers paint a stark reality: tech’s entry doors are closing just as they were supposed to open wider.

Recent stories bring this crisis into focus. Manasi Mishra, a Purdue graduate expecting a six-figure salary, landed only one interview at Chipotle—and didn’t get hired. Zach Taylor from Oregon State applied to nearly 6,000 tech jobs, snagged 13 interviews, but zero offers, even being turned down by McDonald’s for lack of experience.

The AI Doom Loop and Tech Layoffs

Graduates describe an “AI doom loop”: deploying generative tools to send mass applications only to be scoured and rejected by the same AI systems within minutes. Meanwhile, tech giants like Amazon, Meta and Microsoft have cut entry-level roles as part of broader layoffs.

• AI-driven recruitment tools auto-reject junior applicants at scale.
• Major tech firms slashing early-career positions during waves of cutbacks.
• Overreliance on automated resume scanning erodes diversity and opportunity.

Building Resilient Talent Strategies

Amid these shifts, organizations must rethink hiring. By blending human insight with data-driven analytics, companies can identify hidden talent, refine job descriptions to pass AI filters fairly, and forecast market demand. A balanced approach creates a healthier pipeline for junior roles.

Some grads are pivoting. Mishra eventually landed a non-engineering role through a cold application, highlighting that resilience can pay off. But systemic solutions are needed to restore faith in the promise of computer science careers.