Software engineering job listings have plummeted to a five-year low, with postings on Indeed dropping to 65% of January 2020 levels — a steeper decline than any other tech-adjacent field. According to data from Indeed’s job aggregator, software development positions are now at 3.5x fewer vacancies compared to their mid-2022 peak and 8% lower than a year ago.

The decline appears driven by multiple factors including widespread adoption of AI coding tools — with 75% of engineers reporting use of AI assistance — and a broader tech industry recalibration after aggressive pandemic-era hiring. Notable tech companies like Salesforce are maintaining flat engineering headcount while reporting 30% productivity gains from AI tools, according to an analysis by software engineer Gergely Orosz.

While the overall job market shows 10% growth since 2020, software development joins other tech-focused sectors in decline: marketing (-19%), hospitality (-18%), and banking/finance (-7%). Traditional sectors like construction (+25%), accounting (+24%), and electrical engineering (+20%) have grown significantly in the same period, he wrote. The trend extends beyond U.S. borders, with Canada showing nearly identical patterns. European markets and Australia demonstrate more resilience, though still below peak levels.

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