Contrary to the expectation that AI would drastically cut engineering jobs, hiring for engineers has proven remarkably resilient in 2025, according to data from venture firm SignalFire. Instead of shrinking, the share of engineers among new hires at major tech companies has grown, highlighting the continuing demand for engineering talent despite the AI surge.
- Engineering hires fell just 11% since 2019, less than the overall 25% tech hiring drop.
- Engineers made up 55% of all new tech hires in 2025, up from 46% in 2019.
- Startups increased hiring of engineers by 7% over the same period.
What happened
Despite widespread reports linking recent tech layoffs to AI automation, new research from SignalFire indicates that engineering jobs have been the most robust segment of the tech workforce. While total hiring among major technology companies declined by 25% compared to pre-pandemic levels, engineering roles only dropped by 11%. Further, engineers accounted for a majority—55%—of all new hires within twelve of the tech industry's largest companies in 2025, marking a notable increase from 46% in 2019.
This trend extends to early-stage startups where engineering hires actually grew by 7%, showing resilience and ongoing demand even in smaller organizations. These findings contrast sharply with the narrative that AI tools would drastically reduce the need for human coding talent. Instead, SignalFire’s data suggest that engineering capacity remains critical and possibly expanding, as AI adoption enhances rather than replaces engineering work.
Why it matters
The resilience of engineering jobs challenges the prevalent notion that AI will lead to rapid and widespread job displacement in technical fields. Industry leaders such as Nvidia’s CEO Jensen Huang argue that AI tools have made software engineers more productive by automating routine coding tasks, which in turn frees them to focus on higher-value innovation. This dynamic aligns with the Jevons paradox, where improvements in efficiency drive greater overall demand rather than reductions in labor.
Policy makers, investors, and workers closely watching AI’s impact on the labor market should note that engineering talent continues to be a cornerstone of growth and innovation. Rather than an immediate replacement threat, AI appears to be a productivity multiplier, pushing engineers toward tackling new challenges. This insight informs workforce planning and education priorities, highlighting the ongoing importance of engineering skills in an AI-enabled economy.
What to watch next
Future trends to monitor include whether this engineering hiring resilience holds as AI technologies mature and become more integrated into development workflows across different sectors. Additionally, the pace at which AI influences entry-level and routine engineering roles will be important, as early warnings from experts suggest these may be more vulnerable to automation over the longer term.
Another key factor will be how startups versus established tech giants continue to adjust their engineering headcounts in response to AI-related productivity gains. SignalFire’s data provides an early snapshot, but ongoing analysis will be critical to understanding the evolving workforce balance. Observers should also track policy responses to potential structural shifts in employment driven by AI, as well as corporate strategies around reskilling and workforce adaptation.