Software developer job listings have risen almost 15%, but the recovery is masking a troubling divide: employment among software developers aged 22 to 25 has fallen nearly 20%, according to Stanford University's 2026 AI Index. The figures raise questions about whether young workers are finding it harder to break into an industry increasingly shaped by artificial intelligence (AI).
Data from the Indeed Hiring Lab, reported by CNBC on 11 October, shows US software development job listings climbed almost 15% from late February 2025, even as broader job postings fell 7%. However, the increase in vacancies is not translating into a uniformly stronger jobs market for developers at every career stage.
Senior Developers Lead the Hiring Recovery
Indeed data reveals that senior-level roles accounted for 71% of the total growth in software development listings between May 2025 and May 2026. Positions with AI mentioned in their job titles accounted for 37% of the increase over the same period.
These figures reflect contributions to listing growth, not the proportion of all available jobs. They also cover a different period from the nearly 15% rise measured since February 2025. The senior and AI-related categories overlap, so the figures should not be added together.
According to Indeed economist Sneha Puri, businesses continue to rely on developers to supervise automated coding, refine products and guide clients through adopting new technology. She highlighted a shift towards hiring professionals who can help organisations integrate AI tools into everyday workflows, rather than focusing solely on building those systems from scratch.
Despite the recent uptick, software development listings remain roughly 27.5% below pre-pandemic levels. The market has yet to recover fully from the hiring boom that peaked in 2022, when technology firms expanded rapidly during the pandemic before scaling back.
The available data do not establish how much of the hiring downturn or subsequent rebound can be attributed to AI. McKinsey Global Institute research cited by CNBC examines both the potential effects of AI automation on labour demand and wider forces shaping employment, underlining the difficulty of attributing changes in hiring to a single cause.
AI Is Changing What Employers Want
In a CNBC interview, McKinsey North America Chair Eric Kutcher offered an optimistic assessment, explaining that businesses are generating more code than ever. He suggested that developers who can use AI effectively are well placed to benefit from businesses' growing need for software. However, this does not mean every developer is benefiting equally from the changing market.
The shift is also visible in software development itself. GitHub reported in October that AI agents were involved in one out of every three pull requests — proposed changes to a project's codebase — up from fewer than one in ten a year earlier.
As the volume of software production grows, GitHub has warned that security measures must keep pace. Its report focuses on the challenge of preventing exposed credentials and protecting code as development accelerates; it does not establish that AI-generated code is inherently less secure. Developers must ensure that software remains secure and reliable as code production accelerates.
Young Developers Face a Tougher Future
Stanford University's 2026 AI Index, as reported by CNBC, found that employment among software developers aged 22 to 25 fell nearly 20% from 2024. Across fields exposed to AI, employment for people in that age group declined 16% over the period examined, while employment among most older age groups grew.
These figures track actual employment rather than job listings, helping explain why vacancies can rise even as younger workers struggle to find opportunities. However, they do not establish that AI alone caused the decline or that 20% of young developers individually lost their jobs.
Puri urged students to master AI tools alongside core skills such as communication, leadership and interpersonal abilities. She also stressed that companies must invest in entry-level workers, pointing out that today's recruits will become tomorrow's senior leaders. Without effective career pathways, employers could struggle to develop the experienced talent they will need in the years ahead.
The longer-term employment outlook is more positive. An August report from the US Bureau of Labor Statistics projects that employment for software developers in the US will grow by 10% between 2025 and 2035, rising from roughly 1.72 million to 1.89 million positions.
However, that forecast covers the profession as a whole and does not guarantee an easier path into the industry for current university graduates. While demand for software development may grow over the coming decade, the figures suggest that expanding opportunities across the profession do not necessarily translate into an easier start for the next generation of developers.
