NYC: -49% in junior tech job offers, AI and costs weigh heavily

In New York, job offers for entry-level tech positions have decreased by 49% since 2022, a record low among professions. The think tank Center for an Urban Future points to the rapid adoption of AI combined with an unfavorable economic context. The overall tech market remains stable, but cost-cutting measures and the cost of living threaten the city's ability to retain young talent.

Costs and Talent Mobility Redefine Access to First Jobs

The high cost of hiring in New York has reinforced companies' focus on controlling expenses rather than expanding their workforce. For young candidates, the very high cost of living can trigger departures when they find themselves unemployed and facing significant rents. Jonathan Bowles believes that in the absence of opportunities, this rising cost impacts talent retention. However, he asserts that New York is still better positioned than other metropolitan areas to attract and retain tech profiles. He also notes comparable trends in Miami and Boston regarding entry-level hiring.

Where It’s Declining, Where It’s Rising: Sectors, Exposure, and Gaps

Entry-level job offers in tech have dropped by 49% between 2022 and 2025, marking the most significant decline among professions. This contraction is widespread across almost all sectors, with the exception of transportation, warehousing, and public administration. In the latter, job postings have surged by 230% since 2022, while education and retail have seen declines of 69% and 67%, respectively. Occupations most exposed to generative AI have experienced a 29% decrease in entry-level offers since 2022, while those with low exposure have increased by 21%. Jonathan Bowles suggests that some sectors, catching up, are gaining ground as early adopters of AI are now slowing down.

Overall Job Volume Stable but First Foot in the Door Rarer

The total number of tech jobs in New York has remained relatively stable over the past three years, breaking away from previous phases of strong expansion. Jonathan Bowles emphasizes that the blockage is at the entry level of the market, rather than due to mass layoffs. At the same time, demand for entry-level positions related to AI is increasing, and job postings mentioning AI skills have surged by over 8,000%. According to the think tank, these AI-related job creations are not enough to offset the contraction of junior positions across the tech sector.

Interconnected Causes: Before and After the Launch of ChatGPT

The slowdown in entry-level hiring was already underway before November 2022, the launch date of ChatGPT. Starting in March 2022, rising interest rates cooled tech investment and redirected companies towards profitability. Simultaneously, the race for AI shifted budgets from staffing to data centers and IT infrastructure, amid uncertainty related to inflation, tariffs, and geopolitical tensions. In New York, the high cost of hiring has further exacerbated these effects. The adoption of AI and certain macroeconomic factors are linked to the contraction of market entries.

More Candidates Than Positions and Paths to Gain Experience

The number of graduates in computer science and related fields surpassed, in 2023 for the first time since 2010, the volume of job postings for entry-level positions in New York. It is recommended to multiply professional experiences rather than abandon the field, by engaging with civic technology, administration, NGOs, or small businesses. Jonathan Bowles observes growth in the fabric of AI companies and recruitment seeking skills in this area and believes that if this momentum accelerates, it could mitigate current reductions. He considers New York's tech scene robust due to its diversity, an asset he sees as favorable for future growth, while warning that the cost of living may prompt young talent to look elsewhere.