US Software Job Postings Rose Even as AI Coding Spread — but Junior Roles Are Shrinking

October 12 (IT Home) — According to a report today by CNBC, since Anthropic released Claude Code in February 2025, the number of software development job postings in the United States has actually risen rather than fallen.

Data from Indeed Hiring Lab shows that since February 2025, US software development job postings have grown by nearly 15%, while hiring across the overall job market has fallen by 7%.

Some economists say the rebound in software job postings confirms an optimistic view of AI and the job market. Eric Kutcher, chairman of McKinsey North America, said in an interview: “Not long ago we were seeing headlines that software developers would lose their jobs, yet as companies produce record amounts of code, demand for software developers in the AI era remains strong.”

According to Indeed Hiring Lab data, the growth is concentrated in senior roles and more experienced AI-related positions. In fact, senior roles accounted for 71% of the growth in software development hiring between May 2025 and May 2026, and positions with “AI” in the title accounted for 37% of that growth.

Sneha Puri, an economist at Indeed Hiring Lab, said companies realise that even if AI can handle some of the technical coding work, they still need developers to supervise that work, refine products and help customers integrate the technology into day-to-day operations.

IT Home notes that, according to US Bureau of Labor Statistics data, the number of data scientists in the United States grew by 36% between 2023 and 2025, while the number of data entry positions fell by nearly 20%. In other words, more entry-level roles are being displaced.

Stanford University’s 2026 AI Index found that since the rise of generative AI, employment for people aged 22 to 25 in AI-related fields has fallen by 16%, with employment for early-career software developers falling even more, by about 20%.

This shift is making it harder for new graduates to enter the software development industry, even as demand for more experienced talent keeps rising.

Puri said students should become familiar with AI tools but should not neglect their core abilities. “Being able to use AI at work and improve efficiency is a great starting point, but communication, interpersonal skills and leadership are just as important.”

Puri also said entrepreneurs have a responsibility to maintain employment pipelines. “Today’s entry-level talent will become tomorrow’s senior experts. If employers don’t build those talent pipelines now, in ten years they will have no senior talent to draw on.”

According to an August report from the US Bureau of Labor Statistics, the long-term outlook for software developers remains positive. The report projects that employment for software developers will grow by 10% between 2025 and 2035, from about 1.72 million to 1.89 million — roughly 174,700 additional positions.