NYC Entry-Level Tech Jobs Cut By AI Boom

Entry-level technology positions in New York City have experienced a significant decline, with postings dropping by 49% as of 2022, a reduction steeper than in any other sector. This sharp decrease coincides with the widespread adoption of generative artificial intelligence, often referred to as the AI boom, which began following the public release of ChatGPT. The report, authored by the Center for an Urban Future (CUF), a New York-based think tank, highlights that while the city's tech industry has seen substantial overall growth, with tech employment increasing by 160% between 2008 and 2023, this expansion has not benefited entry-level roles. Companies like OpenAI and Anthropic are establishing a presence in the city, and established tech giants such as Google employ over 14,000 individuals in New York, contributing to the broader industry's expansion. However, the analysis indicates a stagnation in overall tech job growth in recent years, specifically impacting those at the beginning of their careers. The number of available entry-level positions has not kept pace with the steady supply of computer science graduates seeking employment. Eli Dvorkin, editorial and policy director at CUF and a co-author of the report, explained that employers face an individual incentive to hire candidates with two to three years of experience. This collective behavior, he noted in an interview with Searchlight, leads to the collapse of the broader entry-level ecosystem, which ultimately disadvantages employers as well. The CUF analysis further revealed that roles most susceptible to automation by generative AI have seen the most pronounced hiring dips. Specifically, entry-level job postings in positions with high AI exposure have decreased by 29% across New York City since 2022. In contrast, entry-level hiring in jobs with low AI exposure has remained robust, growing by 21%, demonstrating a bifurcated job market within the tech sector. This trend suggests that while the tech industry continues to evolve, the nature of entry-level opportunities is shifting, with a greater emphasis on experienced professionals and a reduced demand for those new to the field, particularly in AI-adjacent roles.