Software development remains a growing occupation, but AI is changing who gets hired. Anthropic researchers found that automated coding still depends on human oversight and user input, while cautioning that this reliance is not guaranteed to last. GitHub's analysis of pull requests similarly argues that as AI pushes more code into the world, more risks appear, and humans must be able to scale their review efforts—otherwise the volume of vulnerabilities could become unmanageable.

Recent graduates are feeling the shift most sharply. Stanford's 2026 AI index shows that employment in AI-exposed fields for workers aged 22 to 25 fell 16% since the rise of generative AI, with early-career software developers seeing a 20% drop. At the same time, demand for older and more experienced developer roles has expanded, making it harder for new entrants to get a foothold.

Long-term projections still look strong. The U.S. Bureau of Labor Statistics expects software developer employment to grow from about 1.72 million to 1.89 million jobs between 2025 and 2035, a 10% increase. Yet the report also highlights a generational risk. Puri, quoted in the CNBC article, says students should learn AI tools but not neglect communication and leadership skills, and she urges employers to keep building entry-level pipelines, since today's junior workers become tomorrow's senior experts.