The ‘Great Hesitation’: How Economic Uncertainty and AI Are Shaping the Tech Job Market
In the fast-paced world of technology, careers once considered bulletproof now face unprecedented uncertainty. Dubbed by many as the ‘Great Hesitation,’ a cautious and selective hiring climate has taken hold across the tech sector, as companies weigh economic uncertainty alongside the accelerating adoption of artificial intelligence.
For thousands of tech workers, this means navigating a radically different landscape: prolonged hiring processes, demanding skill requirements, and AI-driven résumé screening tools that might rule them out before a human even has a chance to review their credentials. As companies hesitate, workers find themselves waiting—often indefinitely.
Jobs in Tech: Harder to Get, Easier to Lose
Just a few years ago, tech careers seemed virtually recession-proof. Talented candidates could confidently name their salary expectations, field multiple competing offers, and comfortably jump from role to role, leveraging skills that were always in high demand. But recent figures tell a different story: CompTIA reports that employment in tech dropped by 214,000 jobs in April alone. Unemployment in the industry hovers near 4.6%, while layoffs persist, even at giants like Microsoft, which recently trimmed another 6,000 positions.
Behind these stark numbers is a cultural shift. Companies are now painstakingly cautious, prolonging hiring decisions or shelving roles entirely. Job seekers regularly encounter promising openings abruptly closed, interviews cancelled, and roles withdrawn due to shifting corporate priorities. For candidates like Steve Levine, a 54-year-old solutions consultant from Long Island who has applied for around 50 positions since January, the market feels colder and far less welcoming.
The AI Factor: Raising the Bar, Changing the Game
The driving force behind much of this uncertainty is the swift rise of artificial intelligence. Companies are rapidly redirecting resources into AI-driven initiatives, automating tasks previously handled by human coders, analysts, and even entry-level programmers. According to Victor Janulaitis, CEO of Janco Associates, entry-level programming jobs are vanishing at an alarming rate, victims of automation enabled by advanced AI technologies.
AI’s rising prominence also reshapes skill expectations. Roles previously requiring half a dozen skills now demand double that number, many explicitly connected to AI expertise. Robert Half’s George Denlinger notes that hiring timelines have stretched to double or even triple the length they once were, as companies seek candidates equipped with the perfect blend of traditional tech skills and forward-looking AI capabilities.
Candidates Face AI-Driven Screening and Stricter Recruiting Practices
AI isn’t just reshaping job roles—it’s also revolutionizing hiring itself. Many recruiters now rely heavily on AI to screen résumés, searching for precise keywords and specific skill sets. William Wilkerson, a 32-year-old software engineer recently laid off from Automattic, the parent company behind WordPress and Tumblr, describes this trend vividly. Even with demonstrable AI experience, Wilkerson worries that a missed keyword in his résumé will prevent it from ever reaching human eyes.
In this highly competitive environment, salary expectations become an immediate screening tool. Candidates accustomed to keeping their desired compensation private until final negotiations are now being pressed early on for salary figures, allowing companies to quickly eliminate applicants deemed too expensive.
Annie Murray, a tech career advisor, points out that recruiters refuse to take no for an answer, insisting on immediate disclosure of salary expectations. This tactic, she suggests, helps companies quickly filter applicants in a labor market saturated with talent.
A Market Divided: Senior Experts Thrive, Others Struggle
Despite these challenges, certain groups remain insulated from the Great Hesitation. AI experts, particularly those with advanced degrees or deep experience in data science and machine learning, find themselves in high demand. LinkedIn data shows hiring for AI roles has soared 640% over the past eight years, making AI specialists among the few confidently navigating this turbulent job market.
Conversely, mid-level engineers, early-career programmers, and generalist tech workers face growing difficulty securing new roles. Angela Jiang, who previously worked at OpenAI and now advises tech workers in San Francisco, observes widespread fear and confusion among job seekers about where they fit into the rapidly changing landscape.
Even senior engineers, once comfortably assured of job stability, face heightened scrutiny. Sophie Novati, founder of Formation, an engineering placement company, notes that senior engineers must now oversee AI-generated code and ensure it aligns seamlessly with company standards. Responsibility has grown, and expectations have risen accordingly.
The Future: Adapting to AI’s Job-Market Realities
In this new era defined by economic caution and technological upheaval, adaptability becomes crucial. Workers at all levels increasingly need fluency in AI-related tools, processes, and thinking. Job seekers must proactively develop AI skills, anticipate shifting job requirements, and embrace continuous learning to stay competitive.
For employers, the stakes are equally high. Excessive caution risks missing out on critical talent, while insufficient attention to AI-driven change can lead to obsolescence. The delicate balancing act involves not only integrating AI effectively but also supporting workers whose roles evolve or vanish due to automation.
The Great Hesitation may be a temporary condition, or it might signal a lasting transformation of the tech labor market. Either way, tech professionals and companies alike must adapt quickly. The future belongs not merely to the most qualified, but to the most adaptable—those who can deftly navigate an uncertain landscape shaped increasingly by artificial intelligence.
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