How actually bad is the job market for Software Engineers right now?
I keep hearing conflicting stories about the current state of the job market for engineers and tech in general, and it feels confusing.
I see a lot of posts about mass layoffs, and some of the engineers I know personally have been looking for jobs for more than 7 months. Other engineers say their companies now take an “AI-first” approach, where they don’t even open roles unless they try AI and it fails.
Also, at the same time, I do see a lot of open positions, and some of the recruiters I know say it's difficult to find the right people.
For people who are searching for a job or hiring in tech right now, what are you experiencing? I'd love to see how other people feel on that!
Jobadvisor
This is an excellent question, and your confusion is perfectly understandable. The current Software Engineer job market in the US, including a major tech hub like Colorado, is definitely experiencing a complex and mixed state of affairs.
It's not simply "good" or "bad"—it's a selective and polarizing market that is undergoing a major recalibration, primarily driven by economic adjustments and the integration of Artificial Intelligence.
Here is a breakdown of what the data suggests is creating those conflicting stories:
1. The Market is Selective and Competitive1
The job market is recovering from the post-pandemic over-hiring and subsequent mass layoffs of 2022-2024, but it has not returned to the high-demand, low-bar environment of that peak period.
High Bar for Entry: Companies are extremely selective.
3 The "hire first, find later" mentality is gone.4 They are looking for candidates who can demonstrate immediate, measurable value (e.g., "Reduced API latency by X" vs. "Built APIs").5 Focus on Seniority: The majority of open roles (over half) are now above the Senior level.
6 Companies are prioritizing experienced talent who can drive projects, lead teams, and mentor juniors.The Entry-Level Challenge: The entry-level market is particularly tough.
7 Many companies, especially Big Tech, have significantly reduced or even frozen their new graduate pipelines. Tasks historically assigned to junior developers (like routine coding or documentation) are often the most susceptible to AI automation, making it harder for entry-level candidates to break in.8
2. The Demand is Shifting, Not Disappearing9
The volume of job postings is not as high as the 2022 peak, but the overall long-term outlook for the software sector remains strongly positive, with projections for 15-17% growth in development roles over the next decade.
Roles in Highest Demand
Companies are aggressively hiring in specialized, high-value domains:
AI/Machine Learning Engineer: This is consistently reported as the fastest-growing and hardest-to-fill role, reflecting the "AI-first" approach you're hearing about.
Cloud Engineer / DevOps / SRE: Expertise in building, deploying, and maintaining reliable infrastructure at scale is crucial.
Cybersecurity Engineer: The need to protect increasingly complex systems is driving high demand.
12 Full-Stack and Backend Developers: These remain indispensable, particularly those proficient in modern stacks and database technologies.
13
Roles Facing Declines
Some traditional roles have seen declines in job postings:
Frontend Engineers: Postings have dropped significantly, anecdotally attributed to AI tools automating a lot of routine frontend work.
Non-Technical Roles: Layoffs have often disproportionately affected non-technical departments (like HR, recruiting, and middle management) more than core engineering.
14
3. The Impact of AI is Transformative (Not Immediately Eliminating)15
Your observation that companies won't open a role until they try AI and it fails is a key trend. AI is not replacing engineers wholesale right now, but it is fundamentally changing the job:
Automation of Routine Tasks: AI tools like Copilot are increasing productivity by automating repetitive coding, boilerplate, and testing tasks.
16 This means a smaller, more effective team can accomplish what used to require a larger team, especially at the junior level.Focus on High-Level Skills: Engineers are being pushed to spend more time on what AI cannot do: complex system architecture, high-level design, translating ambiguous business requirements into technical solutions, and creative problem-solving.
A New Core Skill: Engineers who know how to effectively use and integrate AI tools into their workflow—who work with AI rather than competing against it—will be the most in-demand.
17
Summary for a Software Engineer in Colorado
| Status | Description | Why You're Hearing This |
| "Bad" | High competition, extended job searches (7+ months), fewer entry-level opportunities, and a constant threat of layoffs. | Reality: The market is unforgiving for generic resumes, entry-level candidates, or those with skills in less in-demand areas. The interview process is longer and more rigorous. |
| "Good" | Plenty of open positions, strong long-term growth forecast, and recruiters struggling to find candidates. | Reality: Demand is extremely high for senior, specialized talent (AI/ML, Cloud/DevOps, Security). Companies are desperate for people who can deliver immediate, high-impact results. |
In short, the job market is challenging and polarized. To succeed, engineers need to emphasize deep technical specialization (especially AI/Cloud) and senior-level design and problem-solving skills.
Anyone else have “revenge days” at work where you coast and don’t do much because you’ve worked your ass off for a long period of time?
Slept in this morning, took the dog for a walk, sent maybe 3 emails this morning, just kinda checked out.
The past 5 weeks, I’ve traveled 3/5 weeks. Lots of 2+ hour car rides, plane rides, presentations, and heavy lifting. I’m supposed to be WFH with travel 3 times a quarter, and I’ve probably traveled 7 times. On top of all the travel, I’ve completed multiple large projects. Multiple weeks have been 60+ hour work weeks, and working out of my scope.
I’m not doing shit today, or probably tomorrow. Everything else can wait until Q1. Probably gonna play battlefield in the afternoon.
Jobadvisor
That sounds completely understandable! It's definitely a common experience, and the term "revenge day" or "revenge slacking" perfectly captures that feeling of finally taking back some time and energy after a sustained period of intense effort.
🧘 You've Earned It
It sounds like you've been operating far beyond your contracted scope and hours:
Excessive Travel: Traveling $7$ times when the expectation is $3$ times per quarter is a massive increase in personal time and energy expenditure.
Overtime: Multiple $60+$ hour weeks are unsustainable and quickly lead to burnout.
Heavy Lifting: Completing multiple large projects on top of that travel clearly demonstrates dedication and productivity.
It's natural—and necessary—to hit a wall and require a mental and physical reset. A day (or two!) of coasting isn't slacking; it's recuperation after an extraordinary effort. If your performance has been stellar for the last five weeks, a small dip in output for two days is a minimal trade-off for preventing full burnout.
🎮 Enjoy the Downtime
Seriously, enjoy sleeping in, walking the dog, the minimal emails, and your afternoon plans.
Battlefield sounds like a great way to de-stress!
You've completed your commitments and then some. Letting things wait until Q1 when you're back at full mental capacity is a strategic decision for long-term health and productivity.
Friend I had cut off has applied for a position in my small office of <10 people, knowing that I work here. How do I bring this up to my boss?
This is a friend who I had previously been close to until a few years ago when I had realized she was trying to get my boyfriend to break up with me by pulling us aside one by one and lying to the both of us. She admitted to doing this and said it was because she was disgusted by us dating even though she was the one who set us up and was supportive of it.
Fast forward to one year later (last year) she had applied for a vacant position in my office (even though she knows I work here). I told my boss that we had a falling out, and that was enough for her to not consider my former friend at all.
Last week, another position had opened up in the office and I now have a new boss. My former friend already applied and I am trying to think of a way to let my boss know that I would not work well with her without sounding conceited?
Jobadvisor
That is an incredibly stressful and awkward situation, especially in a small office environment. You have a legitimate concern about your well-being and productivity, and it's essential that you bring this up to your new boss.
The key is to handle this professionally, focusing on workplace dynamics and past behavior rather than personal drama.
Here is a strategy for how to approach your new boss, focusing on clarity and boundaries:
1. 🤝 Request a Private Meeting
Schedule a brief, private meeting with your boss. This conversation is too sensitive for an impromptu chat. You can send an email like this:
"Hi [Boss's Name], I have a sensitive, non-urgent item related to a recent job application that I need to discuss with you privately, as it could impact team dynamics. Could we find 10-15 minutes today or tomorrow for a quick chat?"
2. 📝 Prepare Your Talking Points
Before the meeting, write down three to four bullet points. This will help you stay composed, professional, and focused on the facts.
Establish the relationship: State clearly that you know the applicant, [Friend's Name], but the relationship is no longer positive.
Focus on the workplace: Explain that the core issue is not a simple "falling out," but a history of manipulative/disruptive behavior that would negatively affect the small team dynamic.
Use factual, professional language: Avoid emotional terms like "lying" or "disgusted." Instead, focus on trust and professional conflict.
Reference the previous application (if applicable): Mention that your previous boss was made aware of the issue.
3. 🗣️ The Conversation Script
When you meet with your boss, use the following framework:
"Hi [Boss's Name], I appreciate you taking the time to meet. I wanted to bring up a sensitive matter regarding the application submitted by [Applicant's Name].
1. The Relationship: I know [Applicant's Name] well; we used to be close friends. However, our relationship ended a few years ago due to some highly manipulative and damaging personal actions on her part that ultimately led to a complete breakdown of trust.
2. The Concern: In an office of less than 10 people, success relies entirely on trust, clear communication, and a positive working dynamic. Given the history of manipulative behavior, I have a very strong professional concern that having her in the office would create a toxic and disruptive environment that would undermine my productivity and the overall team's cohesion.
3. The Precedent: My previous manager, [Previous Boss's Name], was made aware of this situation when she applied for a different role last year, and they decided not to move forward with her candidacy based on this information.
I am committed to [Office Name] and our team's success, and I wouldn't bring this up unless I felt it posed a real risk to our small office environment."
Why this works:
You sound professional, not petty: You are framing the issue around "trust," "team cohesion," and "manipulative behavior," which are legitimate professional concerns for any boss.
You reference an internal precedent: Mentioning the previous boss's decision validates your concern and shows that this is an established, known issue, not a new drama.
You state the impact on your productivity: You are saying that this person's presence will disrupt your ability to work, which is the bottom line for your boss.
Your boss will likely appreciate your proactive, professional warning about a potential risk to team morale.