It wasn’t a long while ago when educational guidance encouraged young students to pursue a career in software development, luring them with a stable and lucrative professional environment. For older generations, coding has always represented creativity, problem-solving, and a clear ladder to success. However, for today’s Gen Z, who entered the workforce in the mid-2020s, this golden ticket appears increasingly tarnished. AI tools are automating entry-level tasks, shrinking hiring opportunities, and fundamentally altering how young people learn and launch careers in the field of tech.
Erosion of entry-level jobs
According to the Stanford Digital Economy Study, employment for software developers aged under 25 years declined nearly 20% from its late-2022 peak by July 2025. In AI-exposed fields like IT and software engineering, employment fell 6% for workers aged 22-25, while rising 9% for those aged 35-49. Entry-level tech hiring dropped 25% year-over-year in 2024, and internships in tech have plummeted 30% since 2023 (Handshake data), even as applications increased 7%.
AI adoption among developers reached 84% in the 2025 Stack Overflow Developer Survey, up by 14% since tracking began in 2023, with 51% of professionals using AI tools daily. Tools like GitHub Copilot, ChatGPT, and Claude are now handling code writing, debugging, and testing tasks traditionally assigned to juniors.
Hiring managers reflect this shift – 70% believe AI can perform an intern’s job, and 57% trust AI more than recent graduates.Some employers now require 2-5 years of experience for “entry-level” positions, and 37% prefer “hiring” AI over new graduates. High turnover compounds the issue, with 60% of new hires fired within a year in some cases.
The Stack Overflow report also notes Gen Z’s heightened anxiety, revealing that 64% worry about job loss (compared to 45% of millennials), with unemployment for ages 22-27 at 7.4%, which is nearly double the national average of 4.2% as of mid-2025.
Anthropic CEO Dario Amodei had also warned AI could eliminate 50% of entry-level jobs, while a data/AI head bluntly stated, “Being good isn’t good enough.”
Shifting learning habits and skill atrophy
AI’s influence extends beyond workplaces into education. A total of 97% of high school and college students have used AI, with 66% for studying, yielding 10% exam improvements, as per a report from Microsoft. However, 75% students view using ChatGPT as cheating, though 75% would use it even if banned. Turnitin found 11% of 200 million papers were at least 20% AI-generated.
The overreliance on AI for education bypasses the trial-and-error method that builds deep understanding. Pre-AI era traditional learning allowed for discovery but now, instant answers from LLMs cut down on critical thinking. As a result, youngsters enter the workforce less prepared.
GenZs still have a career path forward
Despite the challenges, the solution stays. Stack Overflow CEO Prashanth Chandrasekar told the BBC that AI’s problems and challenges will open new pathways for Gen Z developers. As AI handles routine tasks, future roles may encourage youngsters to have a broader oversight, innovate, and implement ethically. He also stated that companies must invest in young talent, as there would be a dearth of senior experienced workforce in the future.