Software developer jobs shrink by over 70% in the US: Can new grads still break into tech?

The software development career path, long considered one of the most reliable gateways into the American workforce, is now facing a severe downturn. According to new data from Revelio Labs, a workforce intelligence company, job postings for software developers in the U.S.

fell by over 70% between Quarter 1 in 2023 and Quarter 1 in 2025 — a decline more than twice as steep as the 35.8% drop in white-collar postings overall.For thousands of new graduates with degrees in computer science, coding bootcamp credentials, or tech-focused MBAs, this sharp contraction has made an already competitive market even more difficult to navigate.

A tighter job market for tech talent

The overall decline in white-collar job postings between Q1 2024 and Q1 2025 stands at 12.7%, according to Revelio Labs — slightly sharper than the 11.9% decline in blue-collar roles during the same period.

However, for software developers, the pullback has been far more drastic, suggesting a sector-specific hiring freeze that goes beyond the broader market slowdown.Other white-collar roles in tech and business functions have experienced similar declines. Job postings for Business Analysts, Market Researchers, and Delivery Managers have also fallen at nearly double the overall white-collar average, indicating a broader retraction in mid-level corporate hiring for analytical and project-based roles.

Wage growth stalls for new hires

Compounding the issue for job seekers, the salaries offered in white-collar tech job postings have remained flat since mid-2024, according to Revelio Labs’ analysis. This stagnation contrasts sharply with the continued rise in blue-collar wages, which have steadily increased over the same period.The wage freeze has been most acute at the entry level, where employers appear less willing to compete aggressively for new graduates or early-career professionals.

While mid-to-senior roles have seen modest salary stability, job postings for executive positions continue to show upward salary trends — highlighting a growing pay divide within the white-collar workforce.

What this means for new grads

Tech graduates entering the job market this year are facing a much different reality than their counterparts just two years ago. The decline in developer roles — combined with the stagnation of pay and a redistribution of jobs away from traditional tech hubs — suggests that new entrants must now work harder and smarter to break into the industry.Success may depend on the ability to:

While the overall volume of white-collar tech job postings is down, some specialized tech areas continue to see resilience, including DevOps, machine learning, and enterprise security. Graduates who target these niches, and demonstrate a willingness to learn and adapt quickly, may still find opportunity in an otherwise cooling market.

A tech reset, not a collapse

The numbers from Revelio Labs report point to a significant reshaping of the white-collar and tech job landscape, but not an outright collapse.

Rather than a death knell for software careers, the data likely marks a correction from years of aggressive hiring, followed by post-pandemic recalibration and economic caution.

For new grads, the message is clear: the road into tech is now more competitive and less predictable, but it remains open — especially for those who are willing to shift with the market, sharpen their focus, and pursue the evolving roles where demand still exists.