Startups Lift Tech Hiring 7% as Big Tech New-Grad Recruiting Stays 65% Lower
Updated
Updated · ZDNet · Jun 29
Startups Lift Tech Hiring 7% as Big Tech New-Grad Recruiting Stays 65% Lower
1 articles · Updated · ZDNet · Jun 29
Summary
Early-stage startups increased engineering hiring 7% while large tech companies cut engineering hiring 11% year over year, giving graduates a clearer path into smaller firms.
SignalFire said new-grad hiring at tech majors has fallen about 65%, with overall hiring still 25% below the 2019 baseline as AI lets one engineer handle work once spread across five or six people.
2025 computer science graduates were twice as likely to call themselves founders as the 2022 class and 45% less likely to land an engineering role at a tech major.
AI startup funding reached $202 billion globally in 2025, up 75%, helping support the shift even as startup teams stay lean and non-engineering roles such as design and marketing remain weak.
The 2026 tech job market is sharply divided. New graduates and those seeking traditional tech roles face a tough environment, with high unemployment and intense competition for fewer entry-level jobs. Even top students from leading universities are struggling to find positions, as software development postings remain well below pre-pandemic levels. At the same time, startups—especially in AI—are thriving, fueled by strong funding and a high demand for specialized talent. This creates a landscape where opportunity is abundant for those with advanced AI skills, but challenging for those following traditional career paths.