I've worked as a software engineer since 2003 and have been laid off several times, so I know instability is unfortunately common in this field. I was laid off in September 2025 and only started a new position this July. Even though I have a job again, I feel unusually stressed and anxious. Some of that may just be the pressure of being new, but I keep worrying about how long I'll last and what would happen if I were laid off again soon.
I've been seeing many stories about lengthy unemployment, sudden layoffs, and people struggling to find software roles. I realize that constantly reading negative stories may distort my view, but the market does seem difficult. Is AI mainly responsible, or are there other factors? How are different experience levels and specialties being affected? Do experienced developers still have a realistic chance of finding a stable role with a good team and a company that values its employees?
4 Answers
The biggest difference seems to be by experience level. New graduates are having an especially rough time, while people with around five years of experience may find the market manageable but competitive. Senior engineers with a decade or more can still find work, although interviews and expectations have become more demanding. Companies often want candidates to demonstrate broad ownership and system-design judgment rather than just implement features.
Some specialties are much more crowded than others. Frontend roles appear particularly saturated, while full-stack work and established enterprise ecosystems such as Java and .NET still have plenty of demand. AI is affecting hiring and productivity, but it isn't the only cause; companies are also being more selective and are less willing to overhire than they were during the boom years.
The market has been bad, but it appears to have improved somewhat compared with last year. Hiring may still be slower and more selective than before, but that doesn't mean software development is disappearing. A stable, supportive job is still possible; it may just take more deliberate searching, networking, and preparation to find one.
The market is genuinely tougher than it was a few years ago, but online discussions can make it feel even worse because people who are struggling are more likely to post. Experience still helps a lot, though it doesn't make anyone completely immune to layoffs. The stress you're feeling in a new job may be partly leftover anxiety from the previous layoff, so try not to treat that fear as evidence that you're about to be fired.
That seems especially true for system-design interviews. The bar can feel unrealistically high, with interviewers expecting candidates to make decisions as if they already knew the company's architecture and constraints.