Software engineering, once one of the highest-paying occupations in the United States, is undergoing a profound transformation as artificial intelligence reshapes the industry.
The rapid adoption of automation technologies has triggered widespread layoffs and underemployment, leaving many professionals anxious about their future.
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Matt, a software engineer who requested anonymity, now spends his four-hour train commute building a video game from scratch to keep his coding skills sharp.
His job has shifted from writing code to reviewing AI-generated output, a change he believes weakens his abilities.
“I am trying not to leverage AI where I can,” he said.
From Boom to Bust
In 2022, software engineering employed 1.5 million workers earning double the national median salary, according to the US Bureau of Labor Statistics.
The global developer population reached nearly 50 million, per SlashData.
However, the launch of OpenAI's ChatGPT in 2022 marked a turning point, leading to over 600,000 tech job losses in the US, as tracked by Layoff.
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By 2024, the unemployment rate for recent computer science graduates rose to 7%, up from 6.1% the previous year, while underemployment exceeded 19%, according to the New York Fed.
Tech job openings on Indeed fell 36% between 2020 and 2025.
Skills Shift: From Coding to Verification
Industry experts agree that direct programming expertise is losing value while verification skills gain importance.
“It’s clear that the skill of writing code is over,” said Bouke Klein Teeselink, assistant professor of economics at King’s College London.
