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Tech Jobs market 2025, part 3: Job seekers’ stories

Gergely Orosz delivers a sobering reality check for the 2025 technology labor market, dismantling the lingering hope that remote work will remain a permanent equalizer. The most striking revelation isn't just that hiring has slowed, but that the very mechanics of employment have shifted toward a brutal gatekeeping model where "pedigree" now commands up to 50 times more reachouts than skill alone. This is not merely a correction after a bubble; it is a structural hardening of the industry that leaves self-taught engineers and those with career breaks effectively locked out.

The Return of the Gatekeepers

Orosz leans heavily on data from Wellfound, a platform hosting 12 million active candidates, to illustrate how the signal-to-noise ratio has collapsed. He writes, "The job market was most competitive in January 2025, when applications per job peaked on the site. Today, the number is down 10% from that height – meaning it's now slightly easier to stand out as a candidate." Yet, this slight reprieve is deceptive. The underlying dynamic is one of extreme scarcity for the average worker. Orosz notes that despite the dip from the peak, there are still "6x as many applicants per remote job" and "5x as many applicants per in-person job" compared to the 2021 boom.

Tech Jobs market 2025, part 3: Job seekers’ stories

This creates a classic case of adverse selection, a concept explored in the series' companion pieces. When employers are flooded with thousands of applications, they cannot afford to take risks on unproven talent. Instead, they retreat to safe, visible signals. As Orosz puts it, "Pedigree means up to 50x more reachouts. Profiles with high-profile schools and workplaces get up to 20-50x more reachouts than similar profiles with not as much 'pedigree'." This statistical reality suggests that the market is no longer rewarding raw coding ability but rather the ability to signal status. Critics might argue that this is simply a return to pre-pandemic norms, but the scale of the filtering mechanisms suggests a deeper institutional retreat from meritocratic ideals.

Pedigree means up to 50x more reachouts. Profiles with high-profile schools and workplaces get up to 20-50x more reachouts than similar profiles with not as much 'pedigree'.

The Remote Work Retreat

Perhaps the most painful trend identified by Orosz is the rapid erosion of remote opportunities. The data shows a sharp contraction: "35% of engineering jobs are open to remote candidates. This is down from a peak of 56% in 2022." However, the competition for these shrinking remote roles has exploded. Orosz highlights that "remote engineering jobs get 4.5x as many applications compared to 2022." The result is a paradox where remote work is harder to get, pays less, and demands a higher bar of proof.

Orosz observes that "In-person much more in demand," with the San Francisco Bay Area dominating job postings. This geographic concentration reinforces a monopsony dynamic, where a handful of hubs control the majority of high-paying opportunities. The author notes that "Companies that hire remotely definitely have the upper hand in terms of talent choice," yet they are increasingly choosing not to hire remotely. This shift forces engineers to physically relocate or accept lower compensation, effectively ending the era of the distributed workforce for most mid-level roles.

The Junior Engineer Paradox

A surprising pivot in the article is the potential rebound in junior hiring after years of stagnation. Orosz reports that "OpenAI and Anthropic are hiring junior software engineers for the first time ever," and giants like Netflix are finally onboarding new grads after decades of senior-only hiring. The driving force appears to be a realization that the industry's reliance on AI to write code has backfired. One engineering manager quoted by Orosz explains, "After two years, we're hiring juniors again. Our company pushed AI to its limit, where people were allowed to push 10K lines of code PRs that were barely reviewed. This has caused an unmaintainable mess at the foundational layer."

This anecdote suggests that the "AI replacement" narrative for entry-level jobs is premature. Instead, companies are realizing they need humans to maintain the systems AI generates. However, Orosz warns that this rebound is conditional. The new wave of junior hires is being targeted specifically for their "AI fluency." As one manager states, "We're pivoting to hiring junior and fresh-out-of-college talent... Anti anti-AI bias. We'd never hire an engineer with a whiff of [resistance to AI]." This creates a new barrier: juniors must now be not just coders, but AI operators, raising the entry bar even as the volume of hires increases.

The Rise of the "Fake" Candidate

The article also tackles the growing friction caused by automated applications and fraudulent profiles. Orosz details how "Auto-appliers" and scammers are overwhelming hiring pipelines, leading to a vicious cycle where companies erect more barriers. He quotes Amit Matani, CEO of Wellfound, who notes, "Fake applicants are a problem and there are three types: Scammers or state actors... 'Auto-appliers' who aren't interested in a role... [and] Embellished profiles."

In response, the industry is deploying AI to fight AI. Orosz writes, "AI tools for ranking and filtering candidates... To deal with high volumes of inbound applications, AI tools are used to filter out applicants who are likely to be fakers." This creates a dystopian loop where human candidates are increasingly judged by algorithms designed to detect other algorithms. The human cost of this arms race is a hiring process that feels increasingly hostile, with "more rejections come with no feedback" and "trial days or weeks, pre-offer" becoming standard. The administration of hiring has become a bureaucratic fortress, designed to keep the noise out but inevitably keeping the best, non-traditional talent out as well.

Bottom Line

Orosz's analysis is a masterclass in connecting granular data to structural economic shifts, revealing a market that is less about talent and more about risk mitigation. The strongest part of the argument is the evidence that "pedigree" has become the primary currency, effectively freezing social mobility for non-traditional engineers. The biggest vulnerability lies in the assumption that this hyper-filtered state is sustainable; as the pool of "perfect" candidates shrinks, companies may eventually face a talent drought that forces a return to broader, more inclusive hiring practices. For now, however, the message is clear: the era of easy entry is over, and the gatekeepers have locked the door.

Deep Dives

Explore these related deep dives:

  • Signalling (economics)

    The article discusses how candidates with 'pedigree' from high-profile schools and workplaces get 20-50x more recruiter outreach. This directly relates to signalling theory in economics - how credentials and affiliations serve as signals of quality in markets with information asymmetry, explaining why hiring managers rely heavily on brand-name employers and universities as proxies for candidate quality.

  • Adverse selection

    The article describes how inbound applications have become 'noisy' with many underqualified candidates, prompting companies to add barriers and screening. This is a classic adverse selection problem - when job seekers flood applications, the pool becomes dominated by less qualified candidates, forcing employers to implement costly screening mechanisms to identify quality.

  • Monopsony

    The article discusses how Big Tech companies and major employers in specific metros (especially SF Bay Area) dominate hiring, with remote workers facing lower compensation. Monopsony - where few buyers (employers) have market power over many sellers (workers) - helps explain wage dynamics and why geographic concentration of tech employers affects pay and bargaining power for engineers.

Sources

Tech Jobs market 2025, part 3: Job seekers’ stories

“What is the state of the tech jobs market in 2025?” is the question this article tackles in the third and final part of our mini-series on that major subject. We hear from job platforms, and from tech professionals searching for their next opportunity. This article features Wellfound (a jobs platform with around 6M software engineering profiles), and data from Revealera, an alternative data platform. There are also more than 30 software engineers and engineering leaders who discussed their job hunting experience with me. Today, we cover:

Job platform data. Falling demand for remote work, more “barriers” put up by companies, slightly higher demand for backend engineers than before, and more.

Junior engineer recruitment rebounds? More scaleups and publicly traded tech companies are doubling down on hiring new grads and early-career engineers.

Picky employers. More hiring managers hold out for the “perfect candidate,” more rejections come with no feedback, and some think the candidate quality is down, overall. Referrals seem like the only way to consistently get interviews.

Software engineer archetypes in and out of demand. AI engineers, those with Big Tech experience, and infra+SRE engineers are in demand. Times are reportedly tougher for candidates who took career breaks, are self-taught, or are native mobile engineers.

State of engineering leadership hiring. It’s very tough everywhere, especially for experienced engineering managers not yet at Director level. One executive recruiter says many leadership candidates have poor AI skills and unrealistic pay expectations.

Remote market. It’s harder to land a job and compensation is lower, but the bar is higher for remote positions.

Regional observations. Outside of cities, the market is tougher: in Germany, Wayfair’s exit could drag down pay. Are Swiss companies looking to hire in cheaper EU countries?

Previous articles in this series covered:

Part 1: what the data says

Tech job stats

AI Engineering trends

Big Tech hiring stats

Growing importance of location

Tenure rising fast at Big Tech

Where are Big Tech engineers moving to and from?

Engineering leadership recruitment

Remote jobs

Part 2: what hiring managers see

Flood of applications

Few hires via inbound

‘Top’ candidates are hard to find

Remote jobs: more competition for less comp?

Fake applicants + AI: a growing problem

Higher demand for founding engineers and product engineers

Early-stage startups have their own hiring problems

As usual, I have no affiliation with vendors mentioned in this article, and have not been paid to write ...