AI Boosts Demand for Engineers, Against All Odds

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Key Takeaways

1In May, layoffs in the tech sector reached a peak, often attributed to AI, according to Challenger, Gray & Christmas.

2SignalFire found that engineers represented 55% of new hires in 2025, up from 46% in 2019, despite an overall decline in hiring.

3Startups hired 7% more engineers in 2025 compared to 2019, indicating a growing demand for these talents.

💡Why it matters — Contrary to predictions, AI is driving the demand for engineers, highlighting their essential role in the digital age.

The Impact of AI on Engineer Employment: An Unexpected Surprise

The question of the impact of artificial intelligence on employment continues to spark lively debates. In May, the tech sector experienced an unprecedented wave of layoffs, reaching its highest monthly total in years, with AI often cited as the main cause, according to data from Challenger, Gray & Christmas, a company specializing in career transition.

Software Engineers: A Theoretical Vulnerability

In the field of software engineering, automation through AI seemed to pose a direct threat, especially with the rise of automated coding tools. However, a study conducted by SignalFire, a venture capital firm, reveals a different reality. Hiring data shows that software engineers are faring better than expected amid this wave of automation.

An Analysis That Contradicts Expectations

Asher Bantock, head of research at SignalFire, emphasizes that despite the justifications for layoffs often attributed to AI, the ground data does not support this trend. SignalFire analyzed the career trajectories of millions of employees across more than 80 million companies. Their study indicates that engineering has remained one of the most resilient functions in 2025.

Engineering Hiring: An Indicator of Resilience

Rather than focusing on layoffs, SignalFire chose to examine hiring trends to obtain a more accurate picture of labor market evolution. Although major tech companies have reduced their hiring by 25% compared to 2019, engineering positions have only seen an 11% decline, according to SignalFire's "State of the Talent Report."

Growing Demand for Engineers

Engineers accounted for 55% of new hires in 2025 among the 12 major tech companies, such as Alphabet, Meta, Apple, and Amazon. This figure represents a notable increase from 2019, when they made up only 46% of new hires. This trend is even more pronounced in early-stage startups, which hired 7% more engineers in 2025 compared to 2019.

AI: A Catalyst Rather Than a Replacement

Asher Bantock asserts that if AI were truly replacing engineers, we would see a decline in hiring in this field. However, the data shows an increase in engineer recruitment, surpassing other tech functions.

Nuanced Perspectives on the Impact of AI

Dario Amodei, CEO of Anthropic, had warned that AI could annihilate half of entry-level office jobs and push unemployment rates up to 20% within five years. However, Peter McCrory, an economist at Anthropic, has not yet observed such effects. He stated that unemployment rates do not significantly differ between workers using AI to automate their tasks and those in jobs requiring physical interaction.

Industry Leaders' Opinions

Jensen Huang, CEO of Nvidia, dismissed the idea that AI would replace engineers. In an interview at Stanford, he stated that now that all Nvidia engineers are using agentic AI, software engineers are busier than ever, thanks to AI pushing them to innovate constantly.

The Jevons Paradox Applied to Engineering

AI seems to illustrate the Jevons Paradox in the field of engineering: increased efficiency does not decrease demand but rather increases it. Engineers, having become more productive thanks to AI, are facing an ever-expanding workload, as highlighted by Asher Bantock.