AI was supposed to kill engineering jobs, but new data suggests they’re the most resilient
While AI dominates the layoff narrative, engineers are actually making up a larger share of new hires, according to SignalFire data.
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AI was widely expected to eliminate engineering jobs given the rapid adoption of AI-powered coding tools, but new hiring data suggests the opposite is happening. Research from a venture firm analyzing millions of employees found that engineering was the most resilient job function in 2025, with engineering roles declining only 11% compared to a 25% drop in overall hiring at large tech companies. Engineers made up 55% of new hires at major tech companies in 2025, up from 46% in 2019, and early-stage startups hired 7% more engineers in 2025 than in 2019. This pattern aligns with the Jevons paradox, where increased efficiency from AI tools expands the scope of work rather than reducing demand for workers, with engineering leaders noting that AI has made engineers more productive and created endless work for them to do.
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