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Tech Jobs Are Coming Back — But Not for Everyone

Software development hiring is showing signs of recovery in 2026. But new labor-market data reveals that most of the rebound is going to senior and AI-related roles — while entry-level candidates still face a much tougher market.

Oliver Godolt 12 min read
Software developers working together in a modern technology office
Software hiring is beginning to recover in parts of the market — but the new opportunities are not being distributed evenly.

After several difficult years for technology workers, there are finally signs that parts of the tech job market are growing again. But there is a catch: the recovery looks very different depending on how much experience you have.

New data from Indeed Hiring Lab shows that U.S. software development job postings have risen by almost 15% since late February 2025, even as overall job postings declined during the same period.

That sounds like the beginning of a tech hiring comeback.

Look beneath the headline, however, and the picture becomes much more complicated.

The Software Hiring Rebound in Numbers

~15% Growth in U.S. software development job postings since late February 2025, according to Indeed Hiring Lab.
71% Of the increase in software development postings between May 2025 and May 2026 came from senior roles.
-27.5% Software development postings still remain below their February 2020 pre-pandemic level.

Yes, Software Jobs Are Recovering

For much of the period following the pandemic technology boom, software developers faced a dramatically weaker hiring market.

Companies that had expanded aggressively during the pandemic cut hiring, reorganized teams and, in many cases, announced large layoffs.

Software development job postings fell much more sharply than the wider U.S. labor market.

The more recent data finally provides some evidence of a reversal.

Indeed Hiring Lab found that software development postings increased by almost 15% from the launch of Claude Code in late February 2025 through its 2026 analysis period. Across the wider U.S. labor market, overall job postings fell by around 7% over the same period.

Importantly, this does not prove that AI coding tools caused the rebound. Indeed explicitly cautions against interpreting the timing as causation.

But it does challenge one of the simplest versions of the AI jobs story: that better coding AI would automatically mean fewer software development jobs.

A Recovery From a Very Low Base

The rebound should not be confused with a new tech boom. Even after the recent gains, U.S. software development job postings remain roughly 27.5% below their February 2020 level.

The Biggest Problem: Most of the Growth Is Senior

This is where the recovery becomes much less encouraging for people trying to enter the industry.

According to Indeed, 71% of the increase in software development job postings between May 2025 and May 2026 came from senior roles.

In other words, companies are posting more software jobs again — but much of that new demand is for people who already have significant professional experience.

Indeed Hiring Lab · May 2025 to May 2026 Senior positions accounted for 71% of the increase in U.S. software development job postings.

That distinction matters.

A recovering market for senior software engineers does not automatically create an easier job market for graduates, bootcamp participants or developers looking for their first professional role.

Experienced Developers

The rebound is creating new opportunities for candidates who can demonstrate production experience, ownership of complex systems and the ability to work with modern AI-assisted development tools.

Entry-Level Developers

Fewer obvious junior pathways mean candidates may need stronger portfolios, practical projects and more specialized skills before getting their first full-time development role.

The Entry-Level Path Is Getting Narrower

LinkedIn's research on the U.S. software engineering market reaches a similar conclusion from a different dataset.

The company reports that entry pathways into software engineering are tightening. A smaller share of recent computer science graduates are beginning their careers directly in software engineering, while more are moving into adjacent occupations.

LinkedIn also found that entry-level software engineering hiring did not participate in the rebound seen in the broader market at the end of 2025.

At the same time, LinkedIn cautions against blaming the entire slowdown on artificial intelligence.

Software engineering hiring has broadly moved with the wider technology labor market, suggesting that interest rates, economic uncertainty and the correction following pandemic-era overhiring remain important explanations.

AI Is Part of the Story — Not the Whole Story

Entry-level tech hiring is weak, but current LinkedIn data does not support the simple conclusion that AI alone caused the decline. The broader hiring slowdown and the post-pandemic technology correction remain major factors.

AI Is Showing Up Inside the Recovery

While AI may not explain the entire hiring slowdown, it is clearly shaping the jobs that companies are now adding.

Indeed found that 37% of the increase in software development postings between May 2025 and May 2026 came from positions mentioning AI in the job title.

The senior and AI figures overlap — they should not be added together — but together they reveal the direction of the recovery.

Companies appear particularly interested in experienced developers who can work in AI-heavy environments.

The Recovery Is AI-Fluent

The current data does not suggest that coding is disappearing. It suggests that employers increasingly want developers who can combine traditional software engineering expertise with AI tools and AI-related systems.

Fresh Hiring Data Suggests Tech Is Gaining Momentum

More recent LinkedIn data provides another encouraging signal.

In August 2026, hiring in the U.S. Technology, Information and Media sector rose 8.1% from July, according to LinkedIn's September Workforce Report.

Compared with August 2025, hiring in the sector was also slightly higher, at +0.5%.

That is notable because U.S. hiring across all industries remained 6.5% below its level one year earlier.

Technology is therefore beginning to show signs of relative strength even while the broader labor market remains subdued.

U.S. Hiring · August 2026

+8.1% Month-over-month hiring growth in Technology, Information and Media.
+0.5% Year-over-year hiring growth in the U.S. technology sector.
-6.5% Year-over-year hiring change across the overall U.S. labor market.

But This Is Not Yet a Global Tech Boom

The recovery is also uneven across countries.

Indeed found that software development's share of job postings has been rising across several large developed economies since 2025.

But there are notable exceptions.

Germany and France had not shown the same software-development rebound in Indeed's cross-country analysis through June 2026.

That means candidates should be careful about treating a U.S. technology recovery as evidence that every tech market is improving at the same speed.

What This Means for Entry-Level Candidates

None of this means that new graduates should abandon software development.

But the route into the industry is changing.

When fewer employers are looking for candidates whose main value is executing relatively routine development tasks, new developers need other ways to demonstrate that they can contribute.

  • Build projects that actually work. A deployed application is usually a stronger signal than another tutorial or course certificate.
  • Use AI tools — but understand the code. Employers need developers who can review, debug and improve AI-generated output rather than simply produce it.
  • Learn adjacent skills. Cloud infrastructure, APIs, databases, security and deployment can make a junior developer more useful across a wider range of teams.
  • Show evidence of problem solving. Explain what you built, why you made particular decisions and what you changed when something failed.
  • Look beyond traditional tech companies. Software engineers are employed across professional services, manufacturing, financial services, healthcare and many other industries.
  • Consider adjacent entry points. Data, technical operations, implementation, cloud support and other roles can provide experience that later leads back into software engineering.

Job Seeker Takeaway

A recovering tech market is good news, but junior candidates should not wait for the old entry-level market to return. The stronger strategy is to build the kind of practical, AI-aware experience employers are already rewarding.

So, Are Tech Jobs Really Coming Back?

In some parts of the market, yes.

Software development job postings are rising again. Technology hiring showed renewed momentum in August. AI-related technical roles continue to expand.

But calling this a broad return to the hiring conditions of the previous tech boom would go too far.

Software postings remain well below their pre-pandemic level. The recovery is disproportionately concentrated among senior workers. And the traditional path from computer science degree to junior software engineering job has become less straightforward.

The result is a tech labor market with two seemingly contradictory realities:

Companies need technology talent again — but they are becoming more selective about what that talent looks like.

For experienced developers with current AI and cloud skills, that may create new opportunities.

For people trying to get their first job, the recovery may take longer to feel.

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Written by Oliver GodoltCo-Founder of Cityjobs.info
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